From the outside, it looks like a simple case between two businesses.
JetBlue Airways wants to merge with Spirit Airlines. A United States District Judge in Boston will decide whether or not the two can conduct business together. Sounds like a simple, cut-and-dried decision, right?
It¡¯s not.
U.S. District Judge William Young will likely shape the future of the industry in a case that is being closely watched by the aviation world.
JetBlue paid $3.8 billion for the right to acquire Spirit. But the U.S. Justice Department filed a lawsuit to block the merger, saying it violates monopoly laws and would drive prices up for low-cost carriers. However, JetBlue argues that it¡¯s the only way it can compete with the Big Four airlines.
If the merger goes through, it would create the fifth-largest airline in the United States.
One of the attorneys for JetBlue, Jay Cohen, says otherwise. He believes a merger would only help other low-cost carriers like Allegiant and Frontier.
¡°The?evidence will demonstrate that these airlines are experiencing rapid growth and are positioned for even more substantial expansion if given the opportunity,¡± he said.
What makes this case so unique is that it is precedent-setting. This is the first time a potential merger between airlines has been presented before a presiding judge. The case is expected to last approximately three weeks.
In an era when United, Delta and American have all successfully had mergers without going before a judge, this will either embolden or deter other airlines from merging. But under the Biden administration, there has been more scrutiny on whether a company has violated antitrust laws.
One of the government attorneys, Arianna Markel, argued on the opening day of the trial Tuesday that the loss of Spirit would deprive consumers of a viable, low-cost alternative.
¡°Bigger isn¡¯t always better,¡± she said. ¡°It isn¡¯t better for consumers or better for competition. A larger JetBlue means fewer seats, fewer planes, higher fares, and fewer choices.¡±
This is what the judge must decide, ultimately.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
