Adding Spirit’s capacity, it contends, would amplify that phenomenon. JetBlue has argued the deal is good for consumers, pointing to the so-called “JetBlue effect” where its entrance into a market leads to lower fares across the board. Merging the two would yield a new airline giant, doubling JetBlue’s market share to 10 percent. And, they are expected to say, there is no reasonable way to avoid that except by blocking the transaction. Word of the suit - which could come as soon as Tuesday - sent shares in Spirit down nearly 9 percent.Įxpect prosecutors to argue that the deal, which would create the fifth-largest airline in the U.S., would create an unacceptable level of consolidation in an industry already under scrutiny for delays, hidden fees and travel disruptions. ![]() ![]() The Justice Department plans to sue to block JetBlue’s deal to buy the low-cost airline Spirit Airways for $3.8 billion, JetBlue acknowledged on Monday.
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