That’s the spirit.
Biden administration officials seem to have acknowledged that the Justice Department’s refusal to approve the merger has sealed Spirit Airlines’ fate, hinting it may have been a misstep after the ultra-low-cost carrier ceased operations over the weekend.
Neera Tanden, a former adviser to President Biden, is questioning if a merger could have averted significant job losses.
In a related development, Sen. Elizabeth Warren (D-Mass.) sought to shift blame to President Trump for Spirit’s struggles, despite facing critique for her role in disrupting its partnership with JetBlue.
“Given that Spirit Airlines is shutting down and thousands are losing their jobs, it’s time to really consider if the Garland Department of Justice made the right choice in blocking the JetBlue-Spirit merger,” Tanden posted on X, which gained traction.
“Perhaps that was the case, but we need to factor in the families affected in this analysis,” she added.
Spirit Airlines, which had nearly 17,000 employees, officially halted operations after negotiations for a bailout failed.
Besides trying to merge with JetBlue, the airline had also explored discussions with Frontier Airlines as it faced intense financial challenges, worsened by rising jet fuel costs linked to the Iran war.
The Justice Department, led by then-Attorney General Merrick Garland, rejected JetBlue’s attempt to acquire Spirit Airlines for around $3.8 billion.
Garland stated, “The Department of Justice has demonstrated in court that this merger would likely lead to millions of travelers encountering higher fares and fewer choices.” After the court sided with the Justice Department, he affirmed a commitment to uphold antitrust laws.
Tanden, a vocal progressive, suggested Trump bears considerable responsibility for the crisis, mentioning a potential $500 million aid package he had considered.
“Certainly, Trump’s actions were detrimental. But I think we should assess all the evidence,” she remarked after her post gained attention.
Warren expressed her frustration on social media, referring to a 2024 post celebrating the Biden administration’s decision to block the merger, suggesting it would have led to decreased flight availability and increased prices.
“This represents a win for Biden!”
As Spirit Airlines faced difficulties last week, Warren pointed out the consolidation in the airline sector.
“The big four airlines—American, Delta, Southwest, and United—command 75% of the U.S. market. Less competition means higher fares,” she tweeted.
This received a community note that highlighted her firm opposition to the JetBlue-Spirit merger, which some believed could have rescued Spirit and bolstered JetBlue.
Massachusetts progressives contended that the climbing fuel prices stemming from the Iran war were catastrophic for Spirit Airlines, which has already declared bankruptcy twice.
“The JetBlue merger collapsed after a judge appointed by Ronald Reagan deemed the acquisition illegal. Republicans are simply trying to deflect criticism for rising costs affecting families,” Warren remarked.
She pointedly noted that Trump had previously attributed the war and rising oil prices to Spirit’s downfall.
