A federal judge on Tuesday blocked JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines, a victory for the Department of Justice, which argued that the deal would harm travelers.
The proposed merger would have created the nation’s fifth-largest airline.
The Justice Department had argued that smaller, low-cost airlines like Spirit help reduce fares and that allowing the company to be acquired by JetBlue, which tends to charge higher prices than Spirit, would have hurt consumers.
The four largest U.S. airlines — American Airlines, Delta Air Lines, Southwest Airlines and United Airlines — control about two-thirds of the market.
The merger would have given JetBlue a market share of 10 percent, still shy of United, the fourth-largest U.S. airline, which has 16 percent.
Persons:
William G . Young
Organizations:
JetBlue Airways ’, Spirit Airlines, Department of Justice, U.S, District, Massachusetts, Justice Department, The Justice, JetBlue, — American Airlines, Delta Air Lines, Southwest Airlines, United Airlines, U.S .