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Federal Judge Blocks $3.8B Acquisition of Spirit Airlines, Stock Plummets 61%

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A Federal Judge blocked the acquisition of Spirit Airlines by JetBlue, a merger that would have produced the fifth-largest airline in the United States. The ruling by District Judge William Young from Boston cited antitrust laws, saying the merger "does violence to the core principle of antitrust law: to protect the United States' markets -- and its market participants -- from anticompetitive harm." (aeroxplorer.com) More...

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mbrews
mbrews 7
Well, Spirit Airlines will be on shakier economic footing now. With a big chunk of planes going out of service due to P-W engine issues. Might be a bankruptcy in the cards for Spirit ? Stock price is tanking badly.
ruoregon
Rick Uram 3
It will be interesting to see if this ruling has any effect on the Alaska Air/Hawaiian Air proposed acquisition
avionik99
avionik99 15
What a lame excuse for blocking the merger. That excuse was valid in blocking just about any other merger by any other industry also. What we need to be blocking is foreign countries from buying or controlling any US based company.
divingsteph
divingsteph 5
So it is OK for US companies to buy foreign entities overseas but not the other way around? Protectionism does not fare well in international business.
RECOR10
RECOR10 3
You specifically described "Their" problem. But, that said, can you please name a US-owned company in China?
jameswelbourne
jameswelbourne 1
Tesla
strickerje
strickerje 2
Not having protectionism isn't great though when all the countries you trade with do.
jwbuckley2
James Buckley 1
What I see is the exact thing happening that DOJ claimed they didn't want to happen, the loss of a ULCC. Spirit will go bankrupt and liquidate, thus the loss of a ULCC and higher prices out of what is left (frontier etc...), then a feeding frenzy to buy up the planes and crews by everyone else remaining.
woodhead711
Jeffrey Woodhead 10
This is the right decision for the flying public. There’s been too much consolidation in the last 20 years. It was going to take 2 airlines people like for different reasons and turn it into one airline nobody would like because the good stuff rarely survives integration in these scenarios. And then it costs everyone more because monopolization.
RWSlater
Ron Slater 5
How good will it be for the Spirit flying public, if Spirit now goes under?
jmadunleavy
John D 6
From what I’m reading Spirt would likely go away anyway. If the merger was approved, Spirits routes would be absorbed into JetBlues and their fare structure.
Nooge
Nooge 3
How good will it be for the Spirit flying public, if Spirit now goes under?

Less passengers stranded after canceled flights

You get what you pay for
RECOR10
RECOR10 -1
Oh, now you have to put facts over emotions. Jerk!

Under Jeffrey Woodheads mindset we need to make the "Ticket Price" of a Rolex the same as that of a Timex (they do both end in X). Oh, and get rid of the "Class System" for ticketing.

Factually, I preferred it when most of the general public could NOT afford a ticket. While you may be "Free to travel" (well, but for on the Govt toll roads)....travel most certainly is not free.
RECOR10
RECOR10 5
Genius, so, now we will have a failed airline. The FREE MARKET needs to be decided by the market, not some idiots in a court room.
nasdisco
Chris B 5
I trust the pilots and flight crews to fly the plane.

I don’t trust JetBlue Management to fly the airline.

This is the second time a JetBlue project has failed.

PS have another transatlantic flight with JetBlue in a few days.
xtoler
Larry Toler 0
How are the TATL flights on them?
nasdisco
Chris B 3
Only downside is the fact A321 is slower than wide bodied aircraft.
Food ok but others do it better.

Plus side, unique afaik is free WiFi all the way over.
RWSlater
Ron Slater 2
So they can appeal the ruling, and my bet is they will. Spirit Stock is down 61% and JetBlue is down some. Just like when I bought Wheels Up stock when it was .37¢ and sold it at $4.70, I think I might just put a little money into Sprit now.
jmadunleavy
John D 2
You may want to reconsider that. I’m reading that this may be the end of Spirit in that the courts are unlikely to revisit this with JetBlue or any other airline that may be considering. Perhaps poke around with a few reputable news sources before sinking any of your cash.
srobak
srobak 2
That's a pretty flimsy reason for that judgement. To bad no judge told that to United, Delta or American when it came to the acquisitions and mergers of Continental, US Air, Northwest, ATA, and others.
pilotjag
pilotjag 3
I really didn't see how this was going to work. JetBlue and Spirit's business concepts are entirely different to start. I know acquiring Spirit would give JetBlue a bigger presence at Spirit hubs like DFW, Chicago, Houston, Las Vegas etc. But honestly, I think JetBlue is trying to make up for it's failed acquisition of Virgin America. The judge made the right decision
jbsimms
James Simms 3
Much like the New York Central RR merging w/the Pennsylvania RR back in the late 1960’s. There were so many unresolvable differences between the two in so many ways & antagonistic feelings between the two management styles, it was doomed from the start. Having Draconian regulations from the Interstate Commerce Commission didn’t help one iota.
jmadunleavy
John D 4
I thought Alaska Airlines bought Virgin America?
Bayouflier
Bayouflier 0
Virgin was purchased by Alaska.
tonupbsa
F Holden 2
I suppose bankruptcy for Spirit is a better idea?
flybd5juan
Juan Jimenez -2
Spirit certainly deserves to die, dry up and blow away...

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