JetBlue sees 'high likelihood' of U.S. lawsuit to block Spirit deal

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JetBlue Airways said Monday it believes the U.S. Justice Department has a 'high likelihood' of filing an antitrust lawsuit this week to block its $3.8 billion takeover of low-cost rival Spirit Airlines Inc .

"My expectation is that we will get sued by the DOJ this week," Hayes was quoted as saying. "My sense is they came to the table with their minds made up."

The companies have offered to sell Spirit's holdings in Boston and New York, along with some assets in Florida, in a bid to ease the government's antitrust concerns. The deal had been expected to face a tough antitrust review from the beginning because the four biggest airlines - American Airlines, United, Delta and Southwest - control 80% of the market.

JetBlue has argued that the merger, which would create the fifth largest U.S. airline with a market share of 9%, would allow it to better compete with the legacy airlines. Reporting by Diane Bartz and David Shepardson in Washingoton; Editing by Jonathan Oatis and Richard ChangFocused on U.S. antitrust as well as corporate regulation and legislation, with experience involving covering war in Bosnia, elections in Mexico and Nicaragua, as well as stories from Brazil, Chile, Cuba, El Salvador, Nigeria and Peru.

 

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WSJ News Exclusive | JetBlue, Spirit Brace for Justice Department Lawsuit to Block Airlines’ MergerJetBlue's CEO said he expects the Justice Department will try to block its planned takeover of Spirit in the coming days Come on this is david stern blocking cp3 to the lakers all over again AndrewTangel nice article. Has the breakup not been paid already?
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