JBLU - Justice Dept. said to collect depositions as it prepares for Spirit/JetBlue lawsuit

The U.S. Department of Justice has been sending out depositions as it prepares for a lawsuit to block JetBlue's ( NASDAQ: JBLU ) planned purchase of Spirit Airlines ( NYSE: SAVE ). JetBlue fell 1.3% , while Spirit ticked lower.

A lawsuit to attempt to block the combination, which would create the nation's fifth largest airline, has always been expected, according to a Dealreporter item, which cited sources familiar. A timing agreement with the DOJ is said to be in place, though the sources declined to say when it expires.

JetBlue ( JBLU ) agreed to a $3.8 billion acquisition of Spirit ( SAVE ) in late July, after a long battle for the low-cost airline from rival Frontier ( ULCC ).

JetBlue ( JBLU ) and American Airlines ( AAL ) are already involved in a legal dispute with DOJ over an alliance the airlines announced in July 2020 over code sharing. A hearing on that case was held in September and is awaiting a final decision from a judge.  If the Northeast Alliance is unwound, that would likely make it easier for JetBlue ( JBLU ) to win a potential case to purchase Spirit ( SAVE ), according to Dealreporter.

Earlier Monday JetBlue ( JBLU ) pilots approve contract extension including "unprecedented" pay increase.

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