DOJ Expected to Sue to Block Jetblue-Spirit Merger

[eolesen]

Both the WSJ and Bloomberg are reporting that the DOJ is going to file antitrust lawsuit potentially blocking the Jetblue-Spirit merger.

JetBlue CEO Says Feds Will Sue Airline Over Its $3.8 Billion Merger With Spirit This Week

Spirit shares slipped as much as 8% while JetBlue jumped 2% as investors reacted to the latest drama surrounding the discount airline.

www.forbes.com

What that usually means is DOT wants concessions greater than what the parties have offered up in private negotiations.

The same thing happened with US Air and American, so it's not a dead deal by any means.

 

[Kev3188]

Cranky weighs in.

"It seems that JetBlue is really trying to make the only argument that it can make… putting forward its position in relation to the big guys. But DOJ and DOT apparently aren’t going to look at it that way and have real concerns about the elimination of a large, very low fare competitor in all of this."

 

[SWAMECH]

I can agree with both of you.
I also believe it were to be the original Frontier and Spirit merger it would fly thru easily. However, now that it's Spirit/JB and JB gas already said that Spirit will no longer exist once integrated into JB, is a big factor in all this, as CF said, depleting a ULCC is a bigger problem overall.
I also think the alliance between JB/AA is also a large sticking point with the DOJ/DOT.
I bet the DOJ/DOT will be asking for more than JB is offering in concessions by a long shot.
So far, this early morning, I have seen a dozen or so articles on the DOJ/DOT suit coming soon. Concessions request will be much larger than JB was expecting IMO. We shall see in time.

 

[CorvetteMan]

Suit has been filed.

Justice Department sues to block JetBlue’s acquisition of Spirit Airlines
https://www.cnbc.com/2023/03/07/doj...are|com.apple.UIKit.activity.CopyToPasteboard

 

[eolesen]

I'm surprised Chuck Schumer hasn't wielded his gavel here. He was a huge reason Jetblue got off the ground in the first place.

Is it worth walking away from AA to get NK? Possibly.

 

[WeAAsles]

I'm surprised Chuck Schumer hasn't wielded his gavel here. He was a huge reason Jetblue got off the ground in the first place.

Is it worth walking away from AA to get NK? Possibly.

Schumer might not believe the combined airline is going to stay as committed to LIC as they promised? Dania Beach is definitely more appealing.

 

[SWAMECH]

I'm surprised Chuck Schumer hasn't wielded his gavel here. He was a huge reason Jetblue got off the ground in the first place.

Is it worth walking away from AA to get NK? Possibly.

That is the question for sure. I would think yes for now. Maybe visit the alliance a little later down the road?
Or could the DOJ/DOT ask for some concessions out of the alliance AA/JB are trying to hook up with?? Not sure how that would look though, just thinking out loud.
I read this morning that the suit has been filed, so let the negotiations/concessions begin.
Is a quick and small clip from GMA I saw this morning:

Justice Department sues to block JetBlue and Spirit Airlines merger

The $3.8 billion merger would create the nation's fifth-largest airline, but the DOJ says the deal would reduce competition and drive up airfares.

www.yahoo.com

 

[SWAMECH]

Interesting comparo's but very true.

DOJ says JetBlue and Spirit merger would harm millions of Americans

The Biden-Harris administration is heading to court to stop JetBlue from purchasing Spirit Airlines Inc. to protect consumers from surging […] The post DOJ says JetBlue and Spirit merger would harm millions of Americans appeared first on TheGrio.

www.yahoo.com

 

[SWAMECH]

Let the trial begin. Judge sets trial date for the JB/Spirit case.
Even with no ruling as of yet in the JB/AA NEA, still up in the air as well.

Judge sets October trial in US challenge to JetBlue's Spirit deal

A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc. U.S. District Judge William Young in Boston scheduled the nonjury, four-week trial...

www.yahoo.com

 

[SWAMECH]

Well, DOJ delivers their first rejection on an application request by JB/Spirit merger...

U.S. rejects JetBlue, Spirit exemption request, citing lawsuit

WASHINGTON (Reuters) -The U.S. Transportation Department on Friday denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Justice Department's antitrust lawsuit filed this month seeking to block the deal. JetBlue's planned $3.8 billion acquisition of...

www.yahoo.com

 

[SWAMECH]

JB says, "leave us alone".

JetBlue-Spirit merger will be great for Miami economy, workers tourists. Don’t block it | Opinion

The U.S. Department of Justice’s has put up a hurdle to the JetBlue-Spirit merger, Miami businesswoman says.

www.yahoo.com

 

[CorvetteMan]

California, three other states join U.S. bid to stop JetBlue-Spirit merger

www.cnbc.com