According to the reports released on Tuesday, The Department of Transportation and The Department of Justice under Joe Biden’s administration are going to sue and block the purchase of JetBlue Airways. The purchase of Spirit Airlines is worth $3.8 billion, and it will be a huge buy for JetBlue. This deal was finalized, keeping the advantages of reduced competition, limiting choice, and a rise in airfares in view.
It was shared by the Department of Justice that this step of the tie-up will not be beneficial for cost-conscious air travelers. People who tend to travel in Spirit to get a budget-friendly price will now face inconvenience due to the high rates of JetBlue and other airlines.
Robin Hayes, the CEO of JetBlue Airways, said this deal was done to uplift the condition of Spirit Airlines. They were facing a constant fall even after being cheaper. By the tie-up and merge with JetBlue, they can be promised to get a 9% profit, which was originally the loss rate.
Attorney General of the Department of Justice, Merrick Garland, spoke up about the administration’s step in a news conference. He announced and talked about the antitrust suit. The Department wishes and feels its important to stop the consolidation of the airlines and the overall industry. He further added his take on the people’s interest.
Garland pointed out the results of the merger that will impact the common people, the rise of prices, and the limitations of choices. This will also hamper the individual image and uniqueness of Spirit Airlines.
The lawsuit of the Department of Justice spoke up in the federal district court situated in Boston. They said this merger would eliminate people’s cost-effective choices. It will put an end to the nation’s cheapest air travel experience. Half of the low-cost airline’s availability will end. This will create trouble among air travelers.
Many came and joined hands standing beside the idea and pitch of the Department of Justice. New York, the District of Columbia, and Massachusetts also agreed and joined up with the lawsuit.
JetBlue and Spirit Airlines have been facing legal procedures and challenges for the past few weeks. Even after all these, they are strongly standing upon their wish to continue with the agreement and complete the deal. There are negotiations and talk over the topic is going on from both sides.
With a knack for storytelling, Steve founded Lone Tree Voice about 2 years ago. Covering substantial topics under the Business section, he helps information seep in deeper with creative writing and content management skills.