JetBlue, Spirit vow to appeal judge’s decision to block merger

JetBlue Airways and Spirit Airlines said Friday they will appeal a judge's decision that blocked the airlines from merging.

The airline filed a notice of appeal with the U.S. Court of Appeals for the First Circuit. Said on friday statement. A federal judge on Tuesday blocked JetBlue's $3.8 billion acquisition of Spirit, saying it would “substantially reduce competition” and violate the Clayton Act “aimed at preventing anticompetitive harm to consumers.” stated that it violates the

“If JetBlue is allowed to acquire Spirit, at least as proposed, it would eliminate one of the few major competitors in the airline industry that offers unique innovation and price discipline.” wrote U.S. District Judge William Young.

“The immediate doubling of the size of JetBlue's stakeholders in the industry will further strengthen the oligopoly. Worse, this merger will further abandon JetBlue's roots as a maverick low-cost airline.” “That's going to happen,” Young added.

According to the Associated Press, JetBlue said it needed to acquire the smaller airline to better compete with larger airlines.

The Justice Department has filed a lawsuit seeking to block the merger, and Attorney General Merrick Garland said last March, “If allowed to proceed, this merger would limit options and reduce ticket prices for passengers across the United States.'' “It would make Spirit more expensive,” he said, “and eliminate Spirit's unique and destructive role.” It's the industry. ”

President Biden on Tuesday praised the judge's decision to block the merger, saying it benefited consumers. Promoting competition is a key cornerstone of the President's economic plan to reduce inflation.

“Capitalism without competition is not capitalism. It is exploitation,” Biden said in a statement. “Today's ruling is a victory for consumers around the world who demand lower prices and more choice. My administration will continue to fight to protect consumers and enforce antitrust laws.”