BOSTON - The U.S. Department of Justice heads to trial on Tuesday to urge a federal judge to block JetBlue Airways' planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines.
A merger between JetBlue and Spirit, the sixth and seventh largest U.S. carriers, respectively, would mark the first major U.S. airline combination since Alaska Airlines bought Virgin America in 2016. But the Justice Department has said those divestitures are not enough, and in a lawsuit filed in March argued the combined airline would harm consumers by increasing fares and reducing choice on routes nationwide.
The airlines counter that allowing the deal to go forward would strengthen JetBlue's own long-standing reputation as a market disruptor. The department's case is part of a broader push by the Biden administration to aggressively step up antitrust enforcement, an initiative that has had mixed results in court.
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