JetBlue Airways and Spirit Airlines have agreed to end their proposed merger after battling opposition against the acquisition for years.
In 2022, The Dallas Express reported that some experts, like William McGee of the anti-merger American Economic Liberties Project, believed combining the two airlines would hurt competition.
In early 2023, DX reported that Attorney General Merrick B. Garland announced that the Justice Department had filed a complaint against JetBlue’s purchase, claiming it violated federal antitrust law.
In January 2024, a federal judge blocked JetBlue’s planned $3.8 billion purchase of Spirit, saying the merger would drive up airfares.
Now, the CEOs of both carriers have stated that regulatory challenges are the reason behind the acquisition’s nixing, according to CNBC.
JetBlue has agreed to pay Spirit $69 million as part of the agreement to end the deal. On March 4, the day of the announcement, JetBlue’s stock closed 4.33% higher, while shares of Spirit fell 10.84%.
“Given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently,” said JetBlue CEO Joanna Geraghty, according to CNN Business.
“We are disappointed we cannot move forward with a deal. … However, we remain confident in our future as a successful independent airline,” stated Spirit CEO Ted Christie.
Over the past two years, the Biden administration has made it increasingly difficult for large businesses to merge or close acquisitions. In 2023, the Justice Department successfully stopped American Airlines’ Northeast partnership with JetBlue.
