Justice Department filed suit against the $3.8 billion purchase as monopolistic behavior.
Judge William Young of the U.S. District Court for the District of Massachusetts blocked JetBlue Airways’ purchase of Spirit Airlines for $3.8 billion this past week, siding with President Biden’s administration in a 113-page opinion.
Judge Young wrote, “While it is understandable that JetBlue seeks inorganic growth through acquisition of aircraft that would eliminate one of its primary competitors, the proposed acquisition, in this Court’s attempt to predict the future in murky times, does violence to the core principle of antitrust law: to protect the United States’ markets — and its market participants — from anticompetitive harm.”
The Department of Justice was joined by state attorneys general in the lawsuit to block JetBlue’s acquisition, as the president’s administration continues its attempts to curb monopolistic practices. However, the contract for the acquisition does not expire until July, giving JetBlue a few months to appeal to a higher court. Spirit Airlines is poised for bankruptcy if the merger does not take place.
As the Lord Leads, Pray with Us…
- For Attorney General Merrick Garland and state attorneys general as they litigate antitrust cases to prevent monopolies in the marketplace.
- For wisdom for the federal judge(s) who will hear and rule on any appeals to the block of the merger.
Sources: Politico, Reuters
