In a move designed to protect consumers, the Department of Justice (DOJ) has recently blocked a merger between JetBlue and Spirit airlines. Both airlines, known for their affordable flight options, attempted to unite under claims of saving the consumer money. However, these claims came into question when internal documents revealed that JetBlue intended to increase ticket prices by a staggering 40% with respect to pricing proposed by Spirit
Monopolies are not strangers to controversy. They have been known to hit Americans hard in the pocketbook. It was reported that by 2019, monopolies were costing the average American as much as $300 a month. That number is believed to have only risen since then, according to The Guardian.
The DOJ’s decision to block the merger represents a significant victory for consumers over oligopoly. However, it’s worth noting that current global conditions, specifically the high COVID rates, suggest that the best way for consumers to celebrate might be with a staycation rather than a trip involving air travel.
While individual travel plans have been heavily influenced by the ongoing pandemic, for corporate legal professionals who often have their flights reimbursed, this development retains significance as it represents a key move towards preventing market consolidation and its adverse effects on consumers.