JetBlue-Spirit merger could result in $1 billion net harm every year, US DOJ says in merger trial openings
By Serafina Smith ( October 31, 2023, 23:10 GMT | Insight) -- A JetBlue-Spirit deal could lead to a loss of competition resulting in “roughly $1 billion net harm each year” focused primarily on 51 nonstop overlap routes, the Department of Justice contended in the openings of a US merger trial today. The airlines said the merger of “only the 6th and 7th largest airlines” in the US is necessary for JetBlue to gain a national presence that can challenge the dominance of the so-called legacy carriers.A JetBlue-Spirit deal could lead to a loss of competition resulting in “roughly $1 billion net harm each year” focused primarily on 51 nonstop overlap routes, a Department of Justice attorney said today as the airline merger trial opened in Boston. The transaction could also price some cost-conscious travelers out of the market, and eliminate the “Spirit effect” – increasing the price of tickets on all airlines, said DOJ attorney Arianna Markel....
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