The Justice Department has filed a lawsuit to block the merger of JetBlue and Spirit Airlines, creating a new test of President Joe Biden’s aggressive antitrust strategy.
The Department of Justice filed an antitrust lawsuit to block JetBlue’s $3.8 billion purchase of the low-cost carrier, while the Department of Transportation is expected to deny the transfer of Spirit’s airline certificate, arguing that doing so would be against the public interest.
Shortly after entering office, Biden embraced a progressive push to revive antitrust policies and attempt to reverse 40 years of corporate concentration. The policy represents a break with President Barack Obama’s administration, which followed the laissez-faire approach to mergers that has dominated American government in recent decades. (The Obama administration allowed the most recent airline merger, between US Airways and American Airlines, to proceed in 2013.)
The airline industry has consolidated rapidly since deregulation in 1978, and today only four airlines – United, Delta, American and Southwest – control 82% of the US market, which progressives argue has caused costs to consumers and harmed smaller metropolitan areas. appears to sacrifice a slashed plane.
Opponents of the merger have focused on how the loss of Spirit, which offers flights cheaper than most competitors, can raise prices in the main market.
Transportation Secretary Pete Buttigieg, in particular, is under pressure from progressives to block the deal. The potential move is historic, marking the first time the department has blocked a merger since the airline was deregulated.