Airlines will appeal blocked merger
JetBlue and Spirit airlines will appeal a federal judge’s decision to block their planned $3.8 billion merger, saying that it would hurt consumers.
The carriers filed a one-page notice of appeal on Friday, just days after US District Judge William Young in Boston blocked what would have been the first airline merger since Alaska Airlines combined with Virgin America in 2016.
Young’s decision was seen as a significant victory for the Biden administration, which has aggressively enforced antitrust law out of concern that some industries have become too concentrated to the detriment of consumers.
The carriers did not offer additional details about their appeal to the US Court of Appeals for the First Circuit. But in a joint statement after the decision was issued Tuesday, they said they “continued to believe that our combination is the best opportunity to increase much needed competition and choice by bringing low fare and great service to more customers in more markets while enhancing our ability to compete with the dominant US carriers.”
JetBlue is the sixth-largest US carrier, while Spirit is ranked seventh. Together they would form the fifth-largest carrier, leapfrogging over Alaska Airlines, which is pursuing a separate merger with Hawaiian Airlines.
In his decision, Young acknowledged that the combined company could put pressure on the four carriers that dominate the US market — America, Delta, Southwest, and United — but maintained that the loss of Spirit Airlines would hurt consumers who rely on its low fares.