JBLU - JetBlue and Spirit Airlines push back on DOJ complaint

2023-03-07 14:40:07 ET

JetBlue Airways ( NASDAQ: JBLU ) and Spirit Airlines ( NYSE: SAVE ) vowed to fight Department of Justice and Transportation efforts to block the airlines’ planned merger on Tuesday.

Executives at both carriers moved to rebut the DOJ’s allegations of an adverse impact on the consumer stemming from the combination. Additionally, the market share due to be commanded by the combined company was downplayed in comparison to the big four airlines.

“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,” JetBlue CEO Robin Hayes said. “There is too much at stake for the DOJ to prevent us from bringing the JetBlue difference to more customers in more markets.”

Spirit CEO Ted Christie added that both he and Hayes will “vigorously defend” the argument that a combined carrier provides a more compelling low-fare challenger to the major airlines. The executives also indicated “thousands of JetBlue crewmembers and Spirit Team Members” have written letters to the DOT and DOJ in support of the deal.

Neither company responded to requests for comment on Attorney General Merrick Garland’s comments and the implications for JetBlue’s Northeast Alliance with American Airlines.

Shares of Spirit Airlines ( SAVE ) rose 4% on Tuesday, rebounding from a sharp decline on Monday. JetBlue ( JBLU ) stock dipped 2.8% in afternoon trading.

Read more on Garland’s commentary and DOJ complaint filed Tuesday .

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