The takeover deal it wanted was achieved. Washington needs to give the go-ahead before it can take control of the other. This could happen in a number of ways.
The person is Jay Shabat.
Spirit Airlines might still escape JetBlue‘s clutches. Not from anything Frontier Airlines might do — Frontier is now out of the picture. Instead, the biggest obstacle now standing between JetBlue and its takeover of the Florida-based discounter are government lawyers. Antitrust lawyers. To those lawyers, JetBlue will argue the following: Merging with Spirit will help consumers, not hurt them. Four giants currently dominate the domestic U.S. landscape (American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines). A fifth airline with national scope will help exert downward pressure on fares, especially in big hub cities. In addition, JetBlue pledges to divest some of Spirit’s Boston, Fort Lauderdale, and New York assets to other low-cost carriers. The newly-enlarged JetBlue will become a more meaningful option for consumers in more places outside of the eastern seaboard, including large markets like Los Angeles and Las Vegas. In addition, JetBlue will argue, it’s a more consumer friendly airline than Spirit for reasons beyond price — more legroom, inflight television screens, free wi-fi, free drinks, free snacks. And for fliers that prioritize low fares above all else, JetBlue will continue to offer its Spirit-like, no-frills Blue Basic fares. Opponents, of course, will argue the opposite: That consumers will suffer if a higher-cost carrier swallows a lower-cost carrier. That’s all the more true because the two compete so intensely in the busy Florida market. Well good news for the critics: They’re likely to find an attentive ear in Washington, D.C., where the Biden Administration last summer issued an executive order promoting more competition throughout the economy, mentioning airlines five times in the document. The Justice Department is already reviewing a separate JetBlue alliance with American covering northeastern markets Boston and New York that, by all accounts, is a lucrative arrangement for JetBlue that For the month, you have reached your free story limit. On September 8th, your meter will reset.
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