by Donald Wood
Last updated: 9:00 AM ET, Mon January 22, 2024
JetBlue Airways and Spirit Airlines announced plans to
appeal the decision by a United States federal judge to block
a potential merger between the two carriers based on violations of
antitrust laws.
According to Reuters.com,
U.S. District Judge William Young sided with the Department of Justice last
week when he decided that JetBlue’s $3.8 billion acquisition of Spirit was “anticompetitive
and would harm consumers.”
On Friday, JetBlue and Spirit released a joint statement,
saying, “they have jointly filed a notice of appeal to the U.S. Court of
Appeals for the First Circuit, consistent with the requirements of the merger
agreement.”
Reports surfaced last week that Spirit was pushing JetBlue
to appeal
the ruling after shares of the low-cost carrier lost more than 60 percent
of their value following the federal judge’s decision. While stock prices have
rebounded, significant debt payments due in 2025 have further complicated the situation.
Reuters revealed that the appeal process could take months
or longer, which could become an issue with JetBlue facing a July deadline to
close the merger. If the merger isn’t successful by the deadline, the two
airlines could agree to extend or terminate the deal.
Earlier in the month, JetBlue announced that CEO Robin Hayes
stepped
down as CEO ahead of the decision by the federal courts to strike down the merger
with Spirit. JetBlue revealed that current president and chief operating
officer Joanna Geraghty succeeded Hayes, becoming the first woman to lead a
major U.S. carrier.
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