Despite DoJ Resistance, Spirit, Jetblue Brass See Future for Affordable Carrier Option

JetBlue Airways Corp and Spirit Airlines have responded to a DoJ complaint looking to block their proposed merger, announcing their intent to stay the course.

"JetBlue and Spirit will continue to advance our plan to create a compelling national challenger to the Big Four airlines, which control about 80% of the market after years of industry consolidation that the DOJ itself approved. By coming together, we will expand JetBlue’s unique offering – where customers do not have to choose between a low fare and a great experience – to boost competition nationally."

The DoJ said that "in the face of consolidation, JetBlue has provided and important and steadfast source of competition," and that "JetBlue's reputation for lowering fares is so well known in the airline industry that it has earned a name: the 'JetBlue Effect'." 

Spirit CEO Ted Christie said the decision to block the proposed merger was bad for customers in the US. "“We disagree with the DOJ’s decision to seek to block the proposed merger, which will benefit consumers and employees. We will vigorously defend our position that a combined JetBlue and Spirit will be a game changer for customers nationwide, creating the most compelling national low-fare challenger to the dominant U.S. carriers. Together, we intend to democratize flying for travelers across the country – a goal we believe is worthy of the government’s support.”

The choice to merge JetBlue and Spirit will see the latter's aircraft refinished to JetBlue specifications for legroom and amenities, while the combined airline will put the joint fleet to work with more flights and seat availability than ever before. 

"We believe the DOJ has got it wrong on the law here and misses the point that this merger will create a national low-fare, high-quality competitor to the Big Four carriers which – thanks to their own DOJ-approved mergers – control about 80% of the U.S. market," said JetBlue CEO Robin Hayes. "There is too much at stake for the DOJ to prevent us from bringing the JetBlue difference to more customers in more markets.”

The company is comfortable with the prospect of a DoJ lawsuit to block the $3.8 billion takeover of Spirit Airlines, providing a timeline that would see the deal finished up in 2024 even with the takeover being stalled in court.

FMI: www.jetblue.com