In its lawsuit filed in March aimed at stopping JetBlue's purchase of Spirit, the U.S. Justice Department (DOJ) cited as evidence JetBlue's alliance with American at airports in New York and Boston several times.
Calling the partnership a "de facto merger," the DOJ argued that JetBlue's proposed purchase of Spirit, a Florida-based ultra-low cost carrier, would lead to further industry concentration.
On Wednesday, JetBlue CEO Robin Hayes said ending the partnership with American has taken the DOJ's "misplaced" concerns off the table and would help when the Spirit case goes to trial in October.
New York-based JetBlue, however, views the Spirit deal as a way to expand its domestic footprint amid persistent labor and aircraft shortages.
American, Delta (DAL.N), United (UAL.O) and Southwest Airlines (LUV.N) control nearly 80% of the U.S. airline industry.
Persons:
JetBlue's, Robin Hayes, Eleanor Fox, Fox, William Kovacic, James Speta, Speta, Rajesh Kumar Singh, Diane Bartz, David Shepardson, Richard Chang
Organizations:
JetBlue Airways, American Airlines, Spirit Airlines, U.S . Justice Department, DOJ, Wednesday, JetBlue, American, New York University School of Law, Spirit, Former Federal Trade, George Washington University, Virgin America, Alaska Air Group, LaGuardia, Frontier Group Holdings, Northwestern University, Northeast Alliance, Southwest Airlines, U.S, Thomson
Locations:
CHICAGO, WASHINGTON, American, New York, Boston, Florida, Boston . New York, New, U.S, Chicago, Washington