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NEW YORK (AP) — JetBlue Airways warned that it may end its bid to acquire low-cost carrier Spirit Airlines as soon as this weekend after a federal judge blocked the deal, sending Spirit shares sharply lower Friday. “Spirit believes there is no basis for terminating the Merger Agreement," Spirit wrote. Both JetBlue and Spirit have struggled financially and have been slower than some other airlines to recover from the pandemic. Since the start of 2020, JetBlue has lost $2.1 billion, and Spirit has lost $1.7 billion. Spirit tried to merge with Frontier Airlines, another low-cost carrier, in early 2022, but JetBlue won a bidding war to push Frontier aside.

Persons: JetBlue's, “, Spirit Organizations: — JetBlue Airways, Spirit Airlines, JetBlue, Justice Department, Justice, Spirit Airlines Inc, JetBlue Airways Corp, Spirit, Airbus, Pratt & Whitney, Frontier Airlines Locations: Miramar , Florida, New York, U.S, Delta, United

☆ How Spirit Airlines' uncertain future could add cost and stress to travel across America
▼ + stars: | 2024-01-21 | by ( Kevin Williams | ) www.cnbc.com time to read: +3 min

Spirit Airlines airplanes at Fort Lauderdale-Hollywood International Airport (FLL) in Fort Lauderdale, Florida, US, on Tuesday, Oct. 24, 2023. Spirit Airlines Inc. is scheduled to release earnings figures on October 26. Photographer: Eva Marie Uzcategui/Bloomberg via Getty ImagesA federal judge's order blocking a $3.8 billion-dollar deal that would have JetBlue Airways purchase rival Spirit Airlines leaves Spirit with an uncertain future. Few places will feel the impact harder than the Arnold Palmer Regional Airport (LBE) if Spirit can't keep flying. The Arnold Palmer Regional Airport has almost all the amenities of any major airport, just on a smaller scale.

Persons: Eva Marie Uzcategui, Arnold, Arnold Palmer, DeNuzio's, Gabe Monzo, Monzo, Jase Ramsey, Ramsey Organizations: Spirit Airlines, Hollywood International, Spirit Airlines Inc, Bloomberg, Getty, JetBlue Airways, Arnold Palmer Regional, TSA, Pennsylvania Department of Transportation, Florida Gulf Coast University, Southwest, Southwest Florida International Locations: Fort Lauderdale, Fort Lauderdale , Florida, Pittsburgh, Latrobe , Pennsylvania, LBE, Orlando, Myrtle Beach, Florida, Fort Myers, Southwest Florida, South Florida

☆ Judge blocks JetBlue's $3.8 billion acquisition of Spirit, saying the deal would reduce airline competition
▼ + stars: | 2024-01-16 | by ( Associated Press | ) www.businessinsider.com time to read: +1 min

Read previewA federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition. This story is available exclusively to Business Insider subscribers. The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation's biggest low-cost airline. JetBlue argued that the deal would help consumers by making JetBlue a stronger competitor against bigger rivals that dominate the U.S. air-travel market. AdvertisementShares of Spirit Airlines Inc. plunged more than 53% almost immediately.

Persons: —, Biden, William Young Organizations: Service, JetBlue Airways, Spirit Airlines, Business, The Justice, JetBlue, Spirit Airlines Inc Locations: U.S

DALLAS (AP) — A federal judge is siding with the Biden administration and blocking JetBlue Airways from buying Spirit Airlines, saying the $3.8 billion deal would reduce competition. The Justice Department sued to block the merger, saying it would drive up fares by eliminating Spirit, the nation’s biggest low-cost airline. Shares of Spirit Airlines Inc. plunged more than half almost immediately, while JetBlue shares gained 8%. Another judge in the same Boston courthouse killed a partnership in the Northeast between JetBlue and American Airlines. Tuesday's ruling could open the door for Frontier Airlines to make another attempt to buy Spirit.

Persons: Biden, William Young, ” Young, Joanna Geraghty, Robin Hayes, Tuesday's Organizations: DALLAS, —, JetBlue Airways, Spirit Airlines, The Justice, JetBlue, New, Justice Department, Spirit Airlines Inc, American Airlines, Frontier Airlines Locations: New York, U.S, Boston, Florida

A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse, France, November 6, 2018. REUTERS/Regis Duvignau/File Photo Acquire Licensing RightsCompanies Spirit Airlines Inc FollowNEW YORK, Aug 24 (Reuters) - Spirit Airlines Inc (SAVE.N) has agreed to pay up to $8.25 million to settle a class action lawsuit by passengers who said the low-cost carrier blindsided them with surprise carry-on bag fees on tickets bought through third-party travel services. Like other low-cost airlines, Miramar, Florida-based Spirit relies on added fees to help make up for lower base fares. Plaintiffs in the 2017 lawsuit accused the carrier of advertising misleading low prices on travel websites that concealed the "gotcha" bag fees travelers would have to pay at the airport. The plaintiffs originally sought $100 million in punitive damages, though that was dropped from a later version of the lawsuit.

Persons: Regis, Brendan Pierson, Alexia Garamfalvi, Jonathan Oatis Organizations: Spirit Airlines, Airbus, REUTERS, Spirit Airlines Inc, Lawyers, Thomson Locations: Colomiers, Toulouse, France, Brooklyn, Expedia, Miramar , Florida, New York

Microscopic contaminants were found in a metal used in the engine's high-pressure turbine discs - part of the engine core. In an interview, Chief Executive Greg Hayes acknowledged the airlines' frustration over a spate of problems with the Geared Turbofan (GTF) engines over the last seven years. While the latest GTF issue could be the last straw for some, we suspect that the negative (share price) response is overdone". Low-cost Indian carrier Go First, which plunged into financial crisis this year, blamed "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos. Announcing quarterly earnings on Tuesday, RTX increased its 2023 sales expectation from $72 billion to $73 billion to $73 billion to $74 billion.

Persons: Whitney, Pratt, Greg Hayes, Safran, RTX, Robert Stallard, Wizz, Hayes, Pratyush Thakur, Valerie Insinna, Mike Stone, Susan Mathew, Rajesh Singh, Tim Hepher, Shounak Dasgupta, Sharon Singleton, Nick Zieminski Organizations: Pratt, Airbus, U.S, RTX Corp, Raytheon Technologies, CFM International, GE, Reuters, Research, Spirit Airlines Inc, JetBlue Airways, Wizz, Thomson Locations: Paris, Bengaluru, Washington, Chicago

The U.S. Justice Department and Federal Trade Commission (FTC) have mounted an unprecedented number of legal challenges to mergers since Biden came to office in 2021. The Justice Department lost a merger in the insurance industry but won an effort to stop a book publisher merger. Deal advisers said companies had already braced for a tough antitrust regime under Biden and some had been emboldened by the regulators' recent court losses. "The (regulators' guidelines) do provide more transparency but that transparency also reveals some concerns that they are quite hostile to consolidation. The new antitrust guidelines also reflect the White House's focus on labor issues.

Persons: Gonzalo Fuentes, Joe Biden's, Biden, Department's, Kenneth Schwartz, Flom, Fiona Schaeffer, Milbank, Elizabeth Warren, Warren, Diane Bartz, Richard Chang, Chizu Nomiyama, Daniel Wallis Organizations: Viva Technology, Porte de, REUTERS, U.S . Justice Department, Federal Trade Commission, Microsoft, Activision Blizzard Inc, FTC, Meta, Justice Department, JetBlue Airways, Spirit Airlines Inc, Amazon.com, Amazon, Flom LLP, Global, LSEG, Intelligence, Democrat, Congress, Thomson Locations: Porte, Paris, France, WASHINGTON, Skadden, Slate

June 20 (Reuters) - Former Goldman Sachs banker Brijesh Goel's trial on insider trading charges drew to a close on Tuesday, with his attorney saying he was framed by his friend and a prosecutor saying Goel had lied to a New York jury. Prosecutors agreed not to charge him in exchange for cooperation in the case, including secretly recording his conversations with Goel. Assistant U.S. Attorney Joshua Naftalis said recordings of Goel urging Niranjan to delete messages about the trades prove his guilt. A Goldman Sachs spokesperson has called Goel's alleged conduct "egregious" and said the bank is cooperating with authorities. The case was one of several U.S. Attorney Damien Williams announced last summer as part of an insider trading crackdown.

Persons: Goldman Sachs, Brijesh Goel's, Goel, Akshay Niranjan, drugmaker, Goldman, Joshua Naftalis, Niranjan, Reed Brodsky, Brodsky, Apollo, Damien Williams, Jody Godoy, Sonali Paul Organizations: Spirit Airlines Inc, Barclays, Prosecutors, Goel ., U.S, Apollo Global Management, Court, Southern District of, Thomson Locations: New York, U.S, Southern District, Southern District of New York

☆ US weighs suit against Korean Air’s planned acquisition of Asiana -Politico
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +3 min

May 18 (Reuters) - The U.S. Justice Department is considering suing to block Korean Air's (003490.KS) planned acquisition of Asiana Airlines (020560.KS), Politico reported on Thursday. In response to the report, Korean Air said the Justice Department had not made any official decision, adding the South Korean airline would continue its dialogue with the U.S. government until a final decision is made. "Korean Air has made, and continues to make, every effort to obtain all necessary approvals," the company said in a statement to Reuters. EU antitrust regulators said on Wednesday that Korean Air Lines' proposed acquisition of rival Asiana may restrict competition in passenger and cargo air transport services between Europe and South Korea. The merger between South Korea's no.1 and no.2 airlines would see Korean Air become the biggest shareholder in indebted Asiana.

☆ Factbox: Pilots, airlines seek to strike new contracts ahead of peak travel season
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +3 min

SOUTHWEST AIRLINES CO (LUV.N):The Southwest Airlines Pilots Association (SWAPA) in May said its members at the company approved a strike mandate. It added that 98% of its members participated in the vote and 99% voted in favor of authorizing a strike. UNITED AIRLINES HOLDINGS INC (UAL.O):Last year, ALPA said 94% of the nearly 10,000 United Airlines pilots voted to reject a contract offer. SPIRIT AIRLINES INC (SAVE.N):In January, ALPA said pilots at Spirit Airlines voted to ratify a new contract. More than 97% of the union members took part in the vote and 99% of them authorized union leaders to call a strike, if needed.

☆ More States Join Antitrust Lawsuit to Block JetBlue, Spirit Merger
▼ + stars: | 2023-03-31 | by ( Denny Jacob | ) www.wsj.com time to read: 1 min

Attorneys general from California, Maryland, New Jersey and North Carolina on Friday joined an antitrust lawsuit seeking to block JetBlue Airways Corp.’s takeover of Spirit Airlines Inc.“This merger could decrease competition in air travel, leading to fewer flight options and increased costs for travelers,” said North Carolina Attorney General Josh Stein . “A merger might benefit the airlines, but it could harm their customers.”

JetBlue will face "an uphill battle" as it fights the government," said Diana Moss, president of the American Antitrust Institute. "If I'm JetBlue, that's where I focus right now, developing that divestiture offer and lining up a buyer to 'litigate the fix,'" said Dryden. Whatever arguments JetBlue uses, a court fight could last six to eight months and cost tens of millions of dollars in attorney fees, legal experts said. Bill Baer, head of the Justice Department's antitrust division under former President Barack Obama, said the government's complaint "shows that there is meaningful competition between Spirit and JetBlue." "JetBlue brags about the 'JetBlue effect,' where they enter a market and fares tend to go down," he said.

U.S. District Judge William Young in Boston was randomly assigned the case despite the Justice Department's contention that the lawsuit should be heard by another judge who is overseeing a separate antitrust case involving JetBlue. The Justice Department on Tuesday argued that Sorokin should hear the Spirit case as well because both involved "an assessment of JetBlue's network plans, aircraft orders and configurations, and pricing strategy." Sorokin, an appointee of Democratic former President Barack Obama, on Wednesday in a brief order said the Spirit case was wrongly assigned to him because it was "incorrectly marked as related and thus not randomly assigned." The Justice Department and JetBlue declined to comment. In the case filed on Tuesday, the Justice Department said the merger of JetBlue and Spirit would "combine two especially close and fierce head-to-head competitors."

☆ Justice Department Sues to Block JetBlue-Spirit Merger
▼ + stars: | 2023-03-07 | by ( Dave Michaels | Andrew Tangel | ) www.wsj.com time to read: 1 min

The Justice Department filed a lawsuit seeking to block JetBlue Airways Corp. from merging with Spirit Airlines Inc., arguing the deal would stifle competition and lead to higher fares. The DOJ filed its lawsuit Tuesday in Massachusetts federal court. The states of New York and Massachusetts and the government of the District of Columbia are also plaintiffs on the civil case, which says the merger would eliminate Spirit as a low-cost competitor to the major carriers.

The complaint, which was filed in Boston federal court, said that JetBlue planned to remove 10% to 15% of seats from every Spirit plane. "Fewer seats means fewer passengers - and higher prices for those who can still afford to make their way onto the plane. Spirit shares were up about 1.8% on Tuesday after dipping the previous day on expectations of a lawsuit. JetBlue had previously said it expected the deal to close in early 2024, leaving time for litigation if necessary. JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its offer in late July.

☆ U.S. to announce antitrust enforcement action on Tuesday
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, March 7 (Reuters) - The U.S. Department of Justice will announce an antitrust enforcement action later on Tuesday, the department said without giving any additional about the companies or industry involved. The announcement is scheduled for 11:30 a.m., the department said in an advisory. On Monday, JetBlue Airways Corp (JBLU.O) said it believes there is a "high likelihood" the department will file an antitrust lawsuit this week to block its $3.8 billion takeover of low-cost rival Spirit Airlines Inc (SAVE.N). Reporting by Susan Heavey and Diane BartzOur Standards: The Thomson Reuters Trust Principles.

☆ Justice Department Sues to Block JetBlue From Buying Spirit Airlines
▼ + stars: | 2023-03-07 | by ( Dave Michaels | Andrew Tangel | ) www.wsj.com time to read: 1 min

The Justice Department filed a lawsuit seeking to block JetBlue Airways Corp. from merging with Spirit Airlines Inc., arguing the deal would stifle competition and lead to higher fares for tens of millions of travelers. Justice Department officials said JetBlue’s proposed takeover would exacerbate concentration in the U.S. airline industry, eliminating the country’s largest ultra-low-cost competitor to major carriers and reducing available capacity.

☆ Factbox: JetBlue-Spirit deal flies into Biden administration's tough scrutiny
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: 1 min

March 7 (Reuters) - The $3.8 billion merger between JetBlue Airways Corp (JBLU.O) and Spirit Airlines Inc (SAVE.N) is in the crosshairs of the U.S. Justice Department, making it the latest major deal to attract tough regulatory scrutiny. Large deals, including Nvidia Corp's (NVDA.O) bid to buy UK-based chip firm Arm Ltd, have been abandoned following regulatory hurdles. Here is a list of some mergers that faced strong antitrust scrutiny under the Biden regime:DEALS UNDER SCRUTINYDEALS BLOCKED & ABANDONEDDEALS THAT WENT THROUGHReporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila and Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

WASHINGTON, March 6 (Reuters) - JetBlue Airways Corp (JBLU.O) said on Monday it believes there is a "high likelihood" the U.S. Justice Department will file an antitrust lawsuit this week to block its $3.8 billion takeover of low-cost rival Spirit Airlines Inc (SAVE.N). JetBlue said in a statement that it accounted for the possibility of a lawsuit when it provided a timeline to close the deal in the first half of 2024. JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its offer in late July. JetBlue Chief Executive Robin Hayes said on Monday he expected a government lawsuit to stop the deal and that the company would fight it, the Wall Street Journal reported. JetBlue is also awaiting the outcome of a lawsuit filed by the U.S. Justice Department which asks the court to force JetBlue and American to scrap its Northeast Alliance.

☆ JetBlue, Spirit Brace for Justice Department Lawsuit to Block Airlines’ Merger
▼ + stars: | 2023-03-06 | by ( Andrew Tangel | ) www.wsj.com time to read: 1 min

JetBlue Airways Corp. is bracing for the Justice Department to try to block the airline’s planned takeover of Spirit Airlines Inc. in the coming days, JetBlue’s chief executive said Monday. Robin Hayes , CEO of New York-based JetBlue, said the U.S. government’s antitrust regulators have seemed intent on stopping the merger from the outset, while the airlines’ arguments that merging will increase, rather than undermine, competition among the nation’s biggest airlines and reduce overall airfares.

WASHINGTON, March 6 (Reuters) - JetBlue Airways (JBLU.O) said Monday it believes the U.S. Justice Department has a "high likelihood" of filing an antitrust lawsuit this week to block its $3.8 billion takeover of low-cost rival Spirit Airlines Inc (SAVE.N). "We have always accounted for that in our timeline to close the transaction in the first half of 2024," JetBlue said in a statement to Reuters. The Transportation Department, which is also reviewing the deal, is expected to take parallel action to stop the planned transaction, Bloomberg News reported said. JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its offer in late July. JetBlue Chief Executive Robin Hayes said on Monday he expected a government lawsuit to stop the deal and that the company would fight it, the Wall Street Journal reported.

☆ Biden administration moving toward blocking JetBlue-Spirit merger - Politico
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +1 min

"We continue to work through the regulatory process to demonstrate how this merger will increase competition in the airline industry," JetBlue said in an emailed statement. Earlier this week, JetBlue officials answered questions and gave depositions as the DoJ pressed on with its anti-trust review. On Feb. 8, Spirit Airlines said it expects U.S. anti-trust regulators to decide whether to allow the low-cost carrier to proceed with the merger in the "next 30 days or so". JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its offer in late July. Reporting by Manya Saini in Bengaluru; Additional reporting by Sourasis Bose; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Spirit Airlines says expects DOJ decision on JetBlue merger in around 30 days
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

Feb 7 (Reuters) - Spirit Airlines Inc (SAVE.N) said on Tuesday it expects U.S. antitrust regulators to decide whether to allow the low-cost carrier to proceed with its $3.8 billion merger with JetBlue Airways Corp (JBLU.O) in the "next 30 days or so." "We are now waiting to see whether the Department of Justice (DOJ) filed suit to block the deal or allows us to proceed," Spirit CEO Edward Christie said during an investor call. JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its deal. Spirit had cited the Justice Department lawsuit as a reason to fear regulators blocking its sale to JetBlue when it was trying to persuade Spirit shareholders to back the deal with Frontier Airlines Holding Inc instead. JetBlue had acknowledged that the regulatory process could be drawn out and it did not expect the deal to be completed before December 2023.

☆ Spirit Airlines beats estimates on strong travel demand
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +1 min

Feb 6 (Reuters) - Ultra low-cost carrier Spirit Airlines Inc (SAVE.N) posted better-than-expected quarterly results on Monday, fueled by strong demand for air travel despite ongoing economic concerns. Shares of Spirit rose over 7% to $21 in aftermarket trade. U.S. airlines have been trying to cash in on strong demand for air travel, undeterred by rising interest rates and a looming recession, as pandemic restrictions ease. Spirit earned $0.12 per share on an adjusted basis, above analyst estimates of $0.04 per share, according to Refinitiv data. The Miramar, Florida-based airline's total operating revenue in the quarter rose nearly 41% to $1.39 billion, compared with analysts' estimates of $1.38 billion.

☆ Spirit Airlines Pilots Approve New Contract, Lifting Pay 34%
▼ + stars: | 2023-01-10 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Spirit had struggled to attract new pilots as competitors had raised pay. Pilots at Spirit Airlines Inc. approved a two-year contract agreement that will boost their pay by an average of 34% over that period, signaling how growing competition for aviators is fueling higher wages. Nearly 70% of Spirit’s pilots voted in favor of the deal, which the Air Line Pilots Association union said included gains worth $463 million. Captains will receive cumulative pay increases of 25% over the term of the agreement, while first officers’ pay will increase 43%, the union said.

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