Jetblue-Spirit merger blocked
#1
Original Poster
Join Date: Mar 2011
Location: New York, NY
Programs: AA ExPl, DL PM, UA Silver, Hyatt Globalist, Marriott Titanium, probably some others
Posts: 4,102
Jetblue-Spirit merger blocked
Per OMAAT...
In sum, the Court has made its best attempt, applying the law to the evidence in this case, to predict the future of a dynamic market recovering from the COVID-19 pandemic, in markedly uncertain times.55 For the reasons set forth above, therefore, the Court rules that the proposed acquisition violates Section 7 of the Clayton Act. Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you. Why? Because the Clayton Act, a 109-year-old statute requires this result –- a statute that continues to deliver for the American people.
In light of the foregoing Findings of Fact and Conclusions of Law, it is hereby ORDERED that the Defendant Airlines, their agents, servants, employees, and all persons acting in concert with either of them, are PERMANENTLY ENJOINED from executing the proposed merger as agreed on July 28, 2022.
In sum, the Court has made its best attempt, applying the law to the evidence in this case, to predict the future of a dynamic market recovering from the COVID-19 pandemic, in markedly uncertain times.55 For the reasons set forth above, therefore, the Court rules that the proposed acquisition violates Section 7 of the Clayton Act. Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you. Why? Because the Clayton Act, a 109-year-old statute requires this result –- a statute that continues to deliver for the American people.
In light of the foregoing Findings of Fact and Conclusions of Law, it is hereby ORDERED that the Defendant Airlines, their agents, servants, employees, and all persons acting in concert with either of them, are PERMANENTLY ENJOINED from executing the proposed merger as agreed on July 28, 2022.
#2
Join Date: May 2011
Location: NYC (LGA, JFK), CT
Programs: Delta Platinum, American Gold, JetBlue Mosaic 4, Marriott Platinum, Hyatt Explorist, Hilton Diamond,
Posts: 4,895
Per OMAAT...
In sum, the Court has made its best attempt, applying the law to the evidence in this case, to predict the future of a dynamic market recovering from the COVID-19 pandemic, in markedly uncertain times.55 For the reasons set forth above, therefore, the Court rules that the proposed acquisition violates Section 7 of the Clayton Act. Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you. Why? Because the Clayton Act, a 109-year-old statute requires this result –- a statute that continues to deliver for the American people.
In light of the foregoing Findings of Fact and Conclusions of Law, it is hereby ORDERED that the Defendant Airlines, their agents, servants, employees, and all persons acting in concert with either of them, are PERMANENTLY ENJOINED from executing the proposed merger as agreed on July 28, 2022.
In sum, the Court has made its best attempt, applying the law to the evidence in this case, to predict the future of a dynamic market recovering from the COVID-19 pandemic, in markedly uncertain times.55 For the reasons set forth above, therefore, the Court rules that the proposed acquisition violates Section 7 of the Clayton Act. Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you. Why? Because the Clayton Act, a 109-year-old statute requires this result –- a statute that continues to deliver for the American people.
In light of the foregoing Findings of Fact and Conclusions of Law, it is hereby ORDERED that the Defendant Airlines, their agents, servants, employees, and all persons acting in concert with either of them, are PERMANENTLY ENJOINED from executing the proposed merger as agreed on July 28, 2022.
#3
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,722
This made my morning. Nothing could be worse than integrating a decent (though as of late operationally flawed) airline with a bottom feeder like Spirit. Friends do not let friends fly Spirit.
Frontier/Spirit was always the better merger. If B6 needs a partner AS would be the natural choice though they are busy now digesting HA (assuming DOJ doesn't try to block that one, too).
Frontier/Spirit was always the better merger. If B6 needs a partner AS would be the natural choice though they are busy now digesting HA (assuming DOJ doesn't try to block that one, too).
#4
Join Date: Jul 2019
Programs: Hyatt Globalist, B6 Mosaic 2, AS MVP Gold
Posts: 201
This made my morning. Nothing could be worse than integrating a decent (though as of late operationally flawed) airline with a bottom feeder like Spirit. Friends do not let friends fly Spirit.
Frontier/Spirit was always the better merger. If B6 needs a partner AS would be the natural choice though they are busy now digesting HA (assuming DOJ doesn't try to block that one, too).
Frontier/Spirit was always the better merger. If B6 needs a partner AS would be the natural choice though they are busy now digesting HA (assuming DOJ doesn't try to block that one, too).
#5
Join Date: Feb 2013
Location: Brooklyn
Programs: Bolt Bus Rewards
Posts: 1,283
If they want planes & pilots, they should look into acquiring Breeze. They could also wait and buy the assets if Breeze goes under. The fleets would be very compatible 20 A-220 and 17 E-190/E195 frames.
I haven;t flown Breeze, but I assume that the corporate cultures would be more compatible than JetBlue / Spirit.
I can't really see the DOJ trying to block this one.
I also suspect that there are a bunch of Breeze investors who would like to see some return on their investment.
I haven;t flown Breeze, but I assume that the corporate cultures would be more compatible than JetBlue / Spirit.
I can't really see the DOJ trying to block this one.
I also suspect that there are a bunch of Breeze investors who would like to see some return on their investment.
#8
Join Date: Sep 2015
Posts: 366
If they want planes & pilots, they should look into acquiring Breeze. They could also wait and buy the assets if Breeze goes under. The fleets would be very compatible 20 A-220 and 17 E-190/E195 frames.
I haven;t flown Breeze, but I assume that the corporate cultures would be more compatible than JetBlue / Spirit.
I can't really see the DOJ trying to block this one.
I also suspect that there are a bunch of Breeze investors who would like to see some return on their investment.
I haven;t flown Breeze, but I assume that the corporate cultures would be more compatible than JetBlue / Spirit.
I can't really see the DOJ trying to block this one.
I also suspect that there are a bunch of Breeze investors who would like to see some return on their investment.
#9
Join Date: Aug 2002
Location: Gorham, Maine, USA
Programs: Delta Gold, UA Platinum
Posts: 193
[mod edit] This merger is so small compared to the American/US Airways merger it is absolutely absurd this was blocked and American/US Airways was approved. Timing is everything in life.
Last edited by NewbieRunner; Jan 16, 2024 at 1:45 pm Reason: Redacted OT political comment.
#10
Join Date: Aug 2013
Location: usa
Programs: Free agent, value for my money
Posts: 149
If they want planes & pilots, they should look into acquiring Breeze. They could also wait and buy the assets if Breeze goes under. The fleets would be very compatible 20 A-220 and 17 E-190/E195 frames.
I haven;t flown Breeze, but I assume that the corporate cultures would be more compatible than JetBlue / Spirit.
I can't really see the DOJ trying to block this one.
I also suspect that there are a bunch of Breeze investors who would like to see some return on their investment.
I haven;t flown Breeze, but I assume that the corporate cultures would be more compatible than JetBlue / Spirit.
I can't really see the DOJ trying to block this one.
I also suspect that there are a bunch of Breeze investors who would like to see some return on their investment.
#11
Join Date: Jun 2014
Location: PSC
Programs: Hilton Diamond/IHG Platinum/DL Plutononium
Posts: 1,728
Jet Blue should acquire a regional carrier, like Sky West and use it as a feeder to their operations. They'll be unable to compete with the big 3 and Alaska until that happens.
#12
Join Date: Sep 2015
Posts: 366
JetBlue thought eliminating a ULCC could be handled by concessions, and why not offer least first before the lawsuit. But, when it offered minimal concessions initially, JetBlue seemed brash. It was blocked and then JetBlue offered more concessions, including the ones at EWR and BOS, a deal later made with Allegiant etc.. I kind of wonder if JetBlue off the bat offered to give up slots/gates at all of these airports, would it shaped the deal differently before the lawsuit was started.
Anyways, this was likely a blessing in hindsight.
#14
Join Date: Jun 2011
Location: Los Angeles, San Francisco, and Osaka
Programs: United Mileage Plus Premier Executive
Posts: 581
This is great news for the consumer!! JetBlue wanted to eliminate a huge ULCC on the East Coast and raise fares. Glad this DOJ has said enough to mergers that just hurt consumers.
#15
Join Date: Jul 2019
Programs: Hyatt Globalist, B6 Mosaic 2, AS MVP Gold
Posts: 201
I would have loved to see them go after RDU/BNA/AUS given that none of the big boys seemed to want to commit as hubs, but it may just be too late to really get in at this point.