JetBlue is in court against the U.S DoJ currently to answer questions based on the proposed merger with Spirit Airlines. But will it get the greenlight?
Court proceedings have been underway the last few days in Boston, with quite a few revelations coming out of this merger.
Without further ado, let’s get into it…
Concerns From Congress over JetBlue-Spirit Merger…
Before the court proceedings even started, members of Congress voiced concerns over the merger between JetBlue & Spirit Airlines.
Back in September, United States Senator Elizabeth Warren sent a letter to the CEO of JetBlue, Robin Hayes, asking him to clarify the view point of the carrier following an internal document received that fares would increase massively after the merger is completed.
She said in an open letter to Hayes:
“If reports about the information in these redacted documents are correct, they reveal that you have misled the public about the impacts of your merger – and they reveal that the merger will result in higher costs and reduced service for airline passengers.”
“For these reasons, the Department of Transportation (DOT) and antitrust regulators must oppose the deal.”
“The possibility that you have provided a publicly misleading description of the impacts of the merger – which follows reports that you attempted to rig the DOT’s evaluation of the deal – requires an explanation”.
Hayes even acknowledged in the courts that the merger “would eliminate no-frill, low-cost Spirit as an independent brand” and that higher fares would be attributed to this with JetBlue.
Will This Get The Greenlight?
Looking ahead, it will be interesting to see what the outcome of these proceedings will look like in the context of the JetBlue-Spirit Merger.
With concerns voiced over the pricing structure for customer airfares that would happen post-merger, there is significant concern for the passenger over this.
In the interest of the U.S carrier wanting to take on the US3, it will be in their interest to hope that the merger gets approved, so then they can take that fight forward.
Hayes has been arguing that this merger needs to be approved in order to challenge the US3, but is this the case of fares rising as a result? Won’t they just become a part of this group, making it the US4?
However, with the mood, theme and trajectory that such proceedings and past comments have taken, all eyes will be on the final decision within this.
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