Parties will square off on October 16 in US District Court of Massachusetts

An October 16 trial date has been set for the much anticipated  anti-trust lawsuit filed by America’s Justice Department seeking to block the merger of JetBlue and Spirit Airlines

The trial will be held at the US District Court of Massachusetts in Boston. JetBlue Airways is attempting merge with Spirit in a US$3.8 billion deal with Spirit agreeing to sell itself to JetBlue in the summer of 2022.

For its part, JetBlue seeking to create a fifth domestic airline based in America that would rival the other Big Four domestic airlines. The Big Four are Southwest Airlines, Delta Air Lines, American Airlines and United Airlines that together currently make up around 80% of America’s aviation market share.

The US Department of Justice (DOJ) stepped in shortly after the merger was announced filing a law suit block the US$3.8 billion acquisition to prevent industry consolidation.

The Justice Department is claiming that, “JetBlue’s plan would eliminate the unique competition that Spirit provides and about half of all ultra-low-cost airline seats in the industry and leave tens of millions of travelers to face higher fares and fewer options. Spirit itself put it simply: ‘A JetBlue acquisition of Spirit will have lasting negative impacts on consumers.”

DOJ claims merger is dangerous

The DOJ went on to say that the merger would be harmful to working and middle-class Americans across the country. Many of these travelers rely on low-fare airlines when traveling, and the DOJ believes that the JetBlue acquisition will remove the majority of low-cost flights across the country.

The DOJ believes this acquisition will lead to the removal of over half of the ultra-low-cost airline seats in the United States industry. This would lead to tens of millions of travelers facing higher average fares and fewer options.

JetBlue Airways Chief Executive Officer, Robin Hayes, released a statement in response to the lawsuit saying, “we believe the DOJ has got it wrong on the law here and misses the point that this merger will create a national low-fare, a high-quality competitor to the Big Four carriers, which thanks to their own DOJ approved mergers control about 80% of the U.S. market. Together, we intend to democratize flying for travellers across the country a goal we believe is worthy of the government’s support.”

In addition to the DOJ’s lawsuit against the merger, JetBlue Airways is awaiting a separate ruling on its proposed partnership with American Airlines in the North East United States.