The U.S. Department of Justice is suing to block JetBlue Airways’s proposed $3.8 billion acquisition of fast-growing rival Spirit Airlines, the agency announced March 7.
The two discount airlines currently compete on hundreds of routes serving millions of travelers.
Four domestic airlines—American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines— reportedly now make up around 80 percent of the market. JetBlue is said to be the sixth-largest airline. Acquiring Spirit would make JetBlue the fifth-largest.
JetBlue unexpectedly launched a bid for Spirit in April. Spirit countered that the deal was not likely to pass scrutiny by regulators but Spirit shareholders gave the deal their blessing in July, The Washington Post reported. JetBlue CEO Robin Hayes told the newspaper recently that he expected the deal would be finalized by early next year….