Norwegian loses CFO; CAS signs GTA for 140 Airbus aircraft; United funds 12 new E175s
6th July 2017
The US Department of Justice (DOJ) is expected to rule on the proposed JetBlue-Spirit Airlines merger over the next month, according to Spirit chief executive and president Ted Christie.
“We announced in December 2022 that Spirit and JetBlue had certified substantial compliance with the DOJ’s second request and are now waiting to see whether the DOJ filed suit to block the deal or allows us to proceed. We anticipate hearing from the DOJ in the next 30 days or so and that’s really all we have to say on that topic for now,” Christie said during a February 7 earnings update.
The merger, which was formally proposed in July 2022, has been valued at $3.8bn and has been touted as the creation of a budget carrier alternative to the so-called Big Four airlines that together make up around 80% of the US market.
JetBlue’s participation in the Northeast Alliance with American Airlines has come under separate regulatory scrutiny, with a decision said to be pending and the result of which could in turn sway whether the Spirit merger gets the official go-ahead.
Aviation industry analysts at Cowen said that they expect the DOJ to block the merger, which faces a separate antitrust suit in a California court filed by passengers and travel agents that claim the tie-up would diminish competition in the low-cost sector.