JetBlue's $3.8 billion buyout of Spirit Airlines is blocked by judge citing threat to competition

DALLAS -- A national justice is siding with the Biden medication and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 cardinal woody would trim competition.

The Justice Department sued to artifact the merger, saying it would thrust up fares by eliminating Spirit, the nation's biggest low-cost airline.

JetBlue argued that the woody would assistance consumers by making JetBlue a stronger rival against bigger rivals that predominate the U.S. air-travel market.

U.S. District Judge William Young, who presided implicit a non-jury proceedings past year, said successful the ruling Tuesday that the authorities had proven that the merger "would substantially lessen competition" and violated a century-old antitrust law.

"Spirit is simply a tiny airline. But determination are those who emotion it. To those dedicated customers of Spirit, this one's for you," Young wrote.

Shares of Spirit Airlines Inc. plunged much than fractional astir immediately, portion JetBlue shares gained 8%.

For JetBlue, the ruling was its 2nd large setback successful national tribunal successful little than a year. Another justice successful the aforesaid Boston courthouse killed a concern successful the Northeast betwixt JetBlue and American Airlines.

JetBlue, the nation's sixth-largest hose by revenue, present indispensable travel up with different maturation plan. That volition beryllium an duty for incoming CEO Joanna Geraghty. Next period she volition regenerate Robin Hayes, who had engineered some of the deals that person present been blocked successful court.