The anticipated merger between JetBlue and Spirit Airlines has officially been called off, with both low-cost carriers deciding to scrap the $3.8 billion deal. This decision comes after a US judge blocked the merger two months ago, citing concerns that it would harm consumers by reducing competition in the airline industry.
JetBlue’s CEO Joanna G and Spirit’s CEO Ted Christie both expressed disappointment over the failed merger, acknowledging that regulatory obstacles prevented them from moving forward with the deal. The Biden Administration, which has been staunchly against airline mergers, argued that the merger would lead to increased ticket prices for consumers.
US Attorney General Merrick Garland praised the decision to cancel the merger, stating that it was “yet another victory for the Justice Department’s work on behalf of American consumers.” The Justice Department has been closely monitoring the airline industry and taking steps to prevent anticompetitive practices.
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