DOJ Suit Blocks JetBlue From Purchasing Spirit Airlines

The U.S. Justice Department filed a lawsuit blocking JetBlue Airways ($JBLU@US) from purchasing Spirit Airlines, arguing that the deal would stifle competition by eliminating the country’s largest ultra-low-cost airline and reducing available capacity. JetBlue and Spirit ($SAVE@US) said they would fight the lawsuit and added that their merger would increase competition among major airlines and ultimately benefit travelers. The two airlines agreed to combine last year in a $3.8 billion deal that would create the fifth-largest deal in the U.S. with a 9 percent market share. American ($AAL@US), United ($UAL@US), Delta ($DAL@US), and Southwest ($LUV@US) combined make up 80 percent of the market.