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Fox Business
Fox Business
2 Apr 2023


Four states have joined the U.S. Justice Department lawsuit aimed at preventing JetBlue Airways from buying rival discount carrier Spirit Airlines for $3.8 billion.

California, Maryland, New Jersey, and North Carolina signed the lawsuit Friday, which was filed in early March.

They join Massachusetts, New York, Connecticut and the District of Columbia in the litigation.

"We look forward to litigating this important case alongside our state law enforcement partners to stop JetBlue from eliminating its rival, Spirit," said DOJ Principal Deputy Assistant Attorney General Doha Mekki said in a statement.

Attorney General Merrick Garland

U.S. Attorney General Merrick Garland  (REUTERS/Ken Cedeno / Reuters Photos)

The U.S. Justice Department filed the lawsuit on March 7, seeking to stop the transaction.

The DOJ says the merger would lead to higher fares, fewer seats and harming consumers.

FOX Business has reached out to JetBlue and Spirit Airlines for comment.

Jetblue joined bidding war in April

A JetBlue airliner lands past a Spirit Airlines jet on taxi way at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images / Getty Images)

JetBlue and Spirit agreed to combine last year in a $3.8 billion deal that aims to create the fifth-largest airline in the U.S. 

The merged airlines would have an estimated 9% of market share.

JetBlue CEO Robin Hayes defended the deal in a Reuters interview this month, saying it would save consumers money and boost available seats.

JetBlue planes in Boston, Massachusetts

JetBlue planes are seen at Boston Logan International Airport. (David L. Ryan/The Boston Globe via Getty Images / Getty Images)

JetBlue has said that buying Spirit is its best chance of growing large enough to credibly challenge the four largest airlines that combined have 80% of the market.

TickerSecurityLastChangeChange % SAVESPIRIT AIRLINES INC.17.15+0.03+0.18%JBLUJETBLUE AIRWAYS CORP.7.28+0.18+2.54%


President Biden has been pushing back against further consolidation in industries dominated by a few powerful companies.

Reuters contributed to this report.