Summary
- The trial to stop JetBlue’s acquisition of Spirit Airlines has been pushed back by one week.
- The US judge in Boston rescheduled the trial to October 23, despite JetBlue’s legal team wanting a trial in September.
- The Department of Justice is against the merger, believing it could lead to a higher-cost airline and take away ultra-low-cost capability within the US.
The October 16 trial within the US Justice Department’s lawsuit looking for to halt JetBlue Airways planned $3.8 billion acquisition of Spirit Airlines has been pushed back per week, as reported today by Reuters.
Moving the trial back
On March 21, 2023, a US judge scheduled the trial to stop JetBlue and Spirit Airlines’ proposed merger to happen on October 16. US District Judge William Young in Boston scheduled the primary hearing of this blockbuster case to be taken on that date, despite JetBlue’s legal team pushing for a trial in September. In keeping with Young, in a report published by Reuters, October was the soonest his schedule would allow him.
Reuters journalist David Shepardson reported on Friday that the trial has been pushed back. The US judge in Boston pushed back the merger trial of those two airlines by one week, to October 23.
In March, Judge Young promised to maneuver expeditiously and take a look at to rule on the trial by 2023’s end, despite suggestions from the Justice Department to present the federal government until as late as January to try the case.
What’s happening?
On this case, court approval is essential for the merger to turn into effective, barring any settlement between the parties within the meantime. Nonetheless, the Department of Justice is against JetBlue’s $3.8 billion acquisition of the ultra-low-cost carrier. Lawyers for dozens of consumers have filed similar lawsuits against the merger.
Attorney General Merrick B. Garland said in March if the acquisition is approved,
The Department of Justice also believes that a JetBlue-Spirit combination could lead to a higher-cost airline that might absorb a low-cost company, removing about half of the ultra-low-cost capability in the US.
What’s JetBlue saying?
Meanwhile, JetBlue believes a combined JetBlue and Spirit company would bring together one of the best of each airlines. They might create a Customers would profit from access to more routes, greater connectivity, and higher onboard experiences, said the corporate.
Concerns remain
Nonetheless, the concerns regarding the possible impact of a Jetlue-Spirit merger on the low-cost segment remain. These concerns began when Spirit shareholders opted to drop out of the primary proposed merger between Spirit and Frontier Airlines, as an alternative selecting the JetBlue offer. On the time, JetBlue also had the Northeast Alliance with American Airlines, which only fueled the monopoly concerns. This alliance ended as of July 21, 2023, as a condition for the merger.
Photo: Vincenzo Pace | Easy Flying.
One other condition that has recently taken place is JetBlue announcing a definitive agreement with Allegiant Air to transfer several of Spirit Airlines airport holdings and a few of its own assets to the ultra-low-cost carrier.
Through this initiative, Allegiant Air would receive two gates in Boston, two gates in Newark, and 43 take-off and landing authorizations (also often known as slots) in Newark. JetBlue would also relinquish as much as five gates at Fort Lauderdale back to the Broward County Aviation Department.
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