JetBlue warns adverse court rulings could impact business

Adverse rulings in either of the lawsuits aimed at preventing the US$3.8b merger between JetBlue Airways and Spirit Airlines, or its North East Alliance with American Airlines, could adversely impact its business, financial condition, and results of operations, JetBlue has admitted in its latest quarterly report. The New York-based carrier is facing two legal challenges to its July 28, 2022, plan to acquire its Florida-based ultra-low-cost rival, in addition to a pending court decision on the NEA with American, the latter being challenged by the US DOJ, along with Attorneys-General of six states and the District of Columbia. In addition, on November 3, 2022, 25 consumers filed suit in the District Court for the Northern District of California against JetBlue and Spirit seeking to enjoin the merger, alleging that it violates the US's anti-trust Clayton Act. The lawsuit also seeks to enjoin the NEA. No trial date has been set. Citing the same anti-trust legislation, the DOJ, along with the Attorneys-General of two states and the District of Columbia also filed suit in the District Court for the District of Massachusetts on March 7, 2023. On March 31, the Attorneys-Generals of four more states joined the lawsuit. A court date is set for October 16, 2023. In an apparent orchestrated campaign, employees of JetBlue and Spirit have flooded the US Department of Transportation (DOT) with thousands of comments in support of the airlines' proposed merger. Of more than 10,000 public comments received, about 90% are from JetBlue and Spirit crew members using the same pre-written statement requesting the DOT’s "prompt review and approval" of the proposed merger.<br/>