U.S. authorities plan to block JetBlue's $3.8B acquisition of Spirit Airlines.
Regulators allege that the deal would reduce options and raise prices for U.S. air travelers, reports Bloomberg, citing people familiar with the matter.
The U.S. Justice Department (DOJ) and the Department of Transportation (DOT) are expected to take action to block the merger.
- The DOJ plans to file an antitrust lawsuit while the DOT is expected to block the transfer of Spirit's operating certificate.
- JetBlue CEO Robin Hayes said he is not surprised by the likely action and told CBS News he was "expecting a trial."
Zoom Out:
- The proposed merger would make JetBlue the fifth-largest carrier in the U.S. measured by domestic traffic and remove the country's largest discount carrier.
- The DOT has not blocked a certificate transfer since the deregulation of the U.S. airline industry in 1978.
