Analysis: US lawsuit to block JetBlue-Spirit merger casts chill over future airline deals

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Analysis: US lawsuit to block JetBlue-Spirit merger casts chill over future airline deals
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A U.S. federal lawsuit to block JetBlue Airways Corp's purchase of Spirit Airlines has raised hurdles for future airline deals, making it harder for companies to pursue growth and manage costs.

"Americans want more choices and lower prices for airline tickets, not another giant merger," U.S. Senator Elizabeth Warren said on Twitter on Tuesday.

Any airline seeking a merger under the Biden administration will have to be "very careful" about its choices and the way it plans to create value for the traveling public, said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group.The lawsuit against the JetBlue-Spirit deal was widely expected because of the Biden administration's crackdown on large deals between publicly listed companies, analysts said.

"By coming together, we will expand JetBlue's unique offering - where customers do not have to choose between a low fare and a great experience - to boost competition nationally," the airline said on Tuesday. The Justice Department said the planned merger will result in "higher fares and fewer seats, harming millions of consumers on hundreds of routes."

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