JetBlue Threatens Legal Action if Spirit Merger Is Not Allowed To Proceed
Airlines & Airports Mia Taylor February 23, 2023
JetBlue is prepared to fight back if the U.S. Justice Department attempts to block the carrier’s proposed $3.8 billion merger with Spirit Airlines.
During an interview with Bloomberg, JetBlue CEO Robin Hayes said the airline’s legal team is ready to fight, if needed. “We’ve definitely been preparing” Hayes told the news outlet recently, adding that JetBlue has both in-house lawyers and outside counsel as well.
JetBlue and Spirit agreed to a merger last year. However, the deal, which would result in the country’s fifth largest airline, still needs regulatory approval.
Just this week, the Association of Flight Attendants-CWA came out in support of the merger. The union represents about 5,600 Spirit Airlines employees. The flight attendants have already reached a tentative deal with Spirit Airlines, which includes a wage increase and other improvements in exchange for their full support of merging with JetBlue.
The U.S. government however seems to be divided over whether or not to approve the massive merger. Sources have told Politico that the U.S. Department of Justice is likely to file suit against the move and that within the DOJ’s antitrust division there’s a split opinion over whether the two airlines joining forces is a good idea.
JetBlue meanwhile, has asserted that the merger would benefit travelers, by creating a long overdue national, low-fare challenger in a marketplace dominated by American, Delta, United, and Southwest. In addition, Bloomberg reported, that JetBlue is counting on the merger to provide a much needed boost to its aircraft and pilot resources.
In order for the merger to proceed, the airlines will need to convince government regulators that the combined airlines won’t have an unfair market share and price advantage in some cities.
“You either accept a world where you have four large airlines who will call the shots with about 20% of the market each, and the rest of us have 20% between us,” Hayes told Bloomberg reporters. “Or you can create a true low-fair, high-quality national challenger to take on these guys.”
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