Judge says transaction threatens competition in the North American aviation sector
A judge in the United States blocked this Tuesday (16 January 2024) the purchase of the low-cost airline Spirit Airlines for the JetBlue Airways. According to the judge, the deal, estimated at US$3.8 billion, would threaten competition in the country's aviation sector.
In 2023, US Attorney General Merrick Garland said that the merger of the two companies would cause an increase in fares for Spirit Airlines, which operates with more popular fares, and reduce the airline's seat supply by 10% to 15%. company. The information is from Reuters.
After the judge's decision was shared, shares of Spirit Airlines Inc. plunged 47%, while shares of JetBlue rose 5%.
JetBlue is the 6th largest airline in the US by revenue and has argued that it needs the purchase to compete with companies that dominate the country's aviation sector.
“We continue to believe that our merger is the best opportunity to increase much-needed competition and choice, bringing low rates and excellent service to more customers in more markets”the companies said in a statement.
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