DOJ Expected to Sue to Block Jetblue-Spirit Merger

eolesen

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Jul 23, 2003
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Both the WSJ and Bloomberg are reporting that the DOJ is going to file antitrust lawsuit potentially blocking the Jetblue-Spirit merger.


What that usually means is DOT wants concessions greater than what the parties have offered up in private negotiations.

The same thing happened with US Air and American, so it's not a dead deal by any means.
 
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Cranky weighs in.

"It seems that JetBlue is really trying to make the only argument that it can make… putting forward its position in relation to the big guys. But DOJ and DOT apparently aren’t going to look at it that way and have real concerns about the elimination of a large, very low fare competitor in all of this."
 
I can agree with both of you.
I also believe it were to be the original Frontier and Spirit merger it would fly thru easily. However, now that it's Spirit/JB and JB gas already said that Spirit will no longer exist once integrated into JB, is a big factor in all this, as CF said, depleting a ULCC is a bigger problem overall.
I also think the alliance between JB/AA is also a large sticking point with the DOJ/DOT.
I bet the DOJ/DOT will be asking for more than JB is offering in concessions by a long shot.
So far, this early morning, I have seen a dozen or so articles on the DOJ/DOT suit coming soon. Concessions request will be much larger than JB was expecting IMO. We shall see in time.
 
I'm surprised Chuck Schumer hasn't wielded his gavel here. He was a huge reason Jetblue got off the ground in the first place.

Is it worth walking away from AA to get NK? Possibly.
 
I'm surprised Chuck Schumer hasn't wielded his gavel here. He was a huge reason Jetblue got off the ground in the first place.

Is it worth walking away from AA to get NK? Possibly.

Schumer might not believe the combined airline is going to stay as committed to LIC as they promised? Dania Beach is definitely more appealing.
 
I'm surprised Chuck Schumer hasn't wielded his gavel here. He was a huge reason Jetblue got off the ground in the first place.

Is it worth walking away from AA to get NK? Possibly.
That is the question for sure. I would think yes for now. Maybe visit the alliance a little later down the road?
Or could the DOJ/DOT ask for some concessions out of the alliance AA/JB are trying to hook up with?? Not sure how that would look though, just thinking out loud.
I read this morning that the suit has been filed, so let the negotiations/concessions begin.
Is a quick and small clip from GMA I saw this morning:

 
Let the trial begin. Judge sets trial date for the JB/Spirit case.
Even with no ruling as of yet in the JB/AA NEA, still up in the air as well.


 
Well, DOJ delivers their first rejection on an application request by JB/Spirit merger...