According to a Bloomberg report, the Department of Justice (DOJ) and the Department of Transportation (DOT) are planning to take legal action against JetBlue Airways due to its proposed $3.8 billion takeover of Spirit Airlines as early as Tuesday.
According to a report, the US Department of Justice (DOJ) is planning to file an antitrust lawsuit against an airline company. The suit alleges that if the elimination of Spirit occurs it would lead to higher ticket prices and reduced options for travelers, which would violate regulations set forth by federal court.
Additionally, it has been mentioned that the Department of Transportation (DOT) will launch a parallel proceeding and block the transfer of Spirit’s airline operating certificate as it is not in line with public interest.
Related: JetBlue, Spirit Claim Merger Won’t Lead To Higher Airline Fares
JetBlue is expected to repaint Spirit planes and fold its pilots and other employees into the JetBlue workforce. The deal would make New York-based JetBlue the nation’s fifth-biggest airline with more than 450 planes and about 7,000 pilots and — it hopes — help it win customers from the bigger airlines.
However it would also eliminate Spirit, the nation’s biggest budget carrier, and that might not sit well with regulators, who appear to oppose any further consolidation in the airline industry after a round of mergers between 2005 and 2016.
