The obstacles blocking the JetBlue-Spirit merger keep appearing after four additional states decided to join the lawsuit against it as on March 31st, the Attorneys General of California, Maryland, New Jersey, and North Carolina joined the civil antitrust complaint filed by the Department of Justice, the Commonwealth of Massachusetts, the State of New York, and the District of Columbia.When announcing the additional four states, Principal Deputy Assistant Attorney General Doha Mekki said:

"We look forward to litigating this important case alongside our state law enforcement partners to stop JetBlue from eliminating its rival, Spirit. Today we welcome the States of California, Maryland, New Jersey, and North Carolina, who join the complaint to protect the benefits of competition in the airline industry on behalf of their residents.”

Emphasizing a firm "no" to the merger

JetBlue's $3.7 billion acquisition of low-cost carrier Spirit Airlines was sued by the Department of Justice earlier this month on March 7th, with the agency wanting to stop the transaction upon claiming that it would instead lead to higher fares and fewer seats, harming several millions of passengers on hundreds of essential routes.

In quick response, JetBlue and Spirit emphasized they would fight the lawsuit. They remained adamant that the merger would definitely increase competition among North America's big four airlines, which would benefit passengers with better fares as opposed to what the Department of Justice claimed.

But it looks like other parties also want to decline the merger after the four additional states joined the ongoing legal suit, with their reasons aligning alongside the claims of the Department of Justice. North Carolina Attorney General Josh Stein said:

"This merger could decrease competition in air travel, leading to fewer flight options and increased cost of air travel for passengers. A merger might benefit the airlines, but it could harm their customers.”

JetBlue refuses to back down

The constant back and forth with the lawsuit's complainants might be pretty tiresome, but New York-based JetBlue is not backing down. In response to having four additional states chiming in, JetBlue expressed its disappointment in these four states' decision to join the Department of Justice's efforts to protect the dominant position of the big four airlines.

JetBlue also highlighted that the large airports within these involved states, such as Newark Liberty International Airport and Charlotte Douglas International Airport, are primarily controlled by two of the big four airlines - United Airlines and American Airlines, further shows how this entire lawsuit filed by the federal government and states is to preserve the status quo of the big four, which would be quite the anti-competitive measure.

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Receiving support from South Florida

Although the merger seems to be attacked from all angles, JetBlue and Spirit Airlines have been receiving support from the state of Florida after Attorney General Ashley Moody outlined how the acquisition would benefit the state's local economy - especially in South Florida as the state agreed to increase seat capacity by at least 50% in Fort Lauderdale International Airport and Miami International Airport if the merger goes through.

South Florida has blossomed as a tourist destination from within the US and internationally, more significant than it was before the pandemic. And with tourism soaring, Moody claims that the government and airline industry should support Florida's surging economic growth with additional low-cost air travel options and by offering more routes to and from South Florida, where the JetBlue-Spirit merger would chip in.

Competition within the state would be increased as the big four would be forced to compete with lower fares and better service. And by incorporating Spirit Airlines' footprint, the merged airline could expand even further to the Americas and Europe, further resulting in the provision of more air travel choices as South Florida becomes a global gateway and developing the economic workforce in Florida with thousands of new jobs and hundreds of brand-new, affordable flights.

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Bottom line

With the antitrust trial date scheduled for later this year on October 16th, the merger attempt will certainly witness added drama from more states that will join in the lawsuit to reject it and hopefully receive additional support from other states. But regardless of who else will oppose or support the merger, it's clear that JetBlue and Spirit Airlines will always be ready to fight back.

What do you think of the additional four states objecting to the JetBlue-Spirit merger? Share your thoughts with us in the comment section.

• 

  JetBlue

  IATA/ICAO Code:

  B6/JBA

  Hub(s):

  Boston Logan International Airport, Los Angeles International Airport, New York JFK Airport, Orlando International Airport

  Year Founded:

  2000

  CEO:

  Robin Hayes

  Country:

  United States