California, Three Different States Be part of DOJ Bid to Cease JetBlue-Spirit Merger

California and three different states on Friday joined the U.S. Justice Division lawsuit aimed toward stopping JetBlue Airways from shopping for rival low cost provider Spirit Airways for $3.8 billion.

Along with California, Maryland, New Jersey, and North Carolina signed on to the lawsuit filed in early March.

“We look ahead to litigating this vital case alongside our state legislation enforcement companions to cease JetBlue from eliminating its rival, Spirit,” Principal Deputy Assistant Lawyer Common Doha Mekki mentioned in a press release.

The U.S. Justice Division sued on March 7, looking for to cease the transaction, saying the deliberate merger “will result in increased fares and fewer seats, harming hundreds of thousands of customers on tons of of routes.”

Each airways declined fast touch upon the brand new states becoming a member of.

JetBlue CEO Robin Hayes defended the deal in a Reuters interview this month, saying it could save customers cash and enhance obtainable seats.

Including state attorneys normal to the lawsuit might imply additional staffing for litigation, and extra experience concerning potential results of the deal on specific states.

The lawsuit is the most recent try by the administration of President Joe Biden to push again in opposition to additional consolidation in industries dominated by just a few highly effective corporations.

Individually, Florida Lawyer Common Ashley Moody had resolved a state probe into the deal after the airways agreed to extend seat capability by a minimum of 50% in each Fort Lauderdale and Orlando airports if the merger is accomplished.