NEWS: Judge Rules to STOP Spirit Airlines and JetBlue Airways Merger

Finding low fares for airline tickets to Disney World (or anywhere) can be a challenging task for travelers.

Airlines like Spirit, Frontier, and Allegiant offer low rates and direct flights to millions of people across the country. They are some of the cheapest tickets you may find and provide lots of us with deals for traveling. At least this is the opinion of the federal judge who has blocked the merger between two airline companies this week.

Spirit Airlines and JetBlue were working to create a merger between the two companies. They were looking to bring competition and choice to the airline market. But U.S. District Judge Willing G. Young decided that the deal should not happen, according to the Orlando Sentinel.

In his 113-page ruling, the judge stated, “A post-merger, combined firm of JetBlue and Spirit would likely place stronger competitive pressure on the larger airlines in the country.” Larger airlines such as American, Delta, United, and Southwest control 80% of the nation’s commercial airlines. But he continued adding, “At the same time, however, the consumers that rely on Spirit’s unique, low-price model would likely be harmed.”

The two airlines disagreed with the judge’s ruling and gave a joint statement stating, “We continue to believe that our combination is the best opportunity to increase much-needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers.”

The airlines also added that they “are reviewing the court’s decision and are evaluating our next steps as part of the legal process.” There is always the option to appeal the ruling.

Attorney General Merrick B. Garland said in a statement, “Today’s ruling is a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward. The Justice Department will continue to vigorously enforce the nation’s antitrust laws to protect American consumers.”

The judge, Young, shared a few more thoughts by stating that the federal Clayton Act “was designed to prevent anti-competitive harms for consumers by preventing mergers or acquisitions the effect of which ‘may be substantially to lessen competition, or tend to create a monopoly.’” But he also added, “There are no ‘bad guys’ in this case. The two corporations are — as they are expected to — seeking to maximize shareholder value. The Department of Justice is — as the law requires — speaking for consumers who otherwise would have no voice.”

In summary, the judge wrote, “if JetBlue were permitted to gobble up Spirit — at least as proposed — it would eliminate one of the airline industry’s few primary competitors that provides unique innovation and price discipline. It would further consolidate an oligopoly by immediately doubling JetBlue’s stakeholder size in the industry.”

Travel industry analyst Henry Harteveldt stated, “What JetBlue did not make clear enough is that it has a basic economy fare to compete against major airlines.”

It is possible that the battle for the merger is not over. JetBlue and Spirit could return with an appeal or a different low-fare airline could enter the case. We’ll have to wait and see if this is the end.

Until then, keep following AllEars for more travel news!

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