In an important development in the U.S. airline industry, a federal judge in Massachusetts has rejected the $3.8 billion acquisition of Spirit Airlines by JetBlue. The court expressed concerns over the continuation of a trend prevalent since the onset of the 21st century – the turning of the airline industry into an oligopoly as a result of multiple mergers similar to the proposed JetBlue-Spirit deal.
The U.S. Department of Justice in tandem with several state attorneys general had lodged a complaint in March to prevent the merger subsequent to the finalization of the $3.8 billion deal, which was intended to establish the fifth largest airline across the nation.
In his closing remarks, Judge Young stated, “Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you.” He reasoned his decision by referring to the Clayton Act, a statute that dates back more than a century and is mandated to ‘continually deliver for the American people’.
The full details of the court’s decision and its potential consequences on the airline industry can be explored further at this Law.com report.