The Biden administration sued to block JetBlue Airways' US$3.8 billion purchase of Spirit Airlines, saying Tuesday that the deal would reduce competition and drive up air fares for consumers.
The U.S Justice Department said the tie-up would especially hurt cost-conscious travelers who depend on Spirit to find cheaper options to JetBlue and other airlines.
Attorney General Merrick Garland held a news conference to announce the antitrust lawsuit -- a sign of the importance that the administration places on stopping further consolidation in the airline industry.
"If allowed to proceed, this merger will limit choices and drive up ticket prices for passengers across the country" and "eliminate Spirit's unique and disruptive role in the industry," he said.
The Justice Department lawsuit, filed in federal district court in Boston, stressed that the deal would mean the end of the nation's biggest "ultra-low-cost carrier." Those are airlines that generally provide the cheapest fares but also tend to charge more fees.
The Justice Department lawyers said Spirit's demise would eliminate about half of all ultra-low-cost seats in the market. It cited a Spirit estimate that average fares fall 17% when it enters a route, and a JetBlue calculation that fares rise 30% when Spirit leaves a route.
The airlines vowed to continue fighting to salvage their agreement.
JetBlue CEO Robin Hayes said the merger would boost competition by making his New York-based airline bigger and better able to go up against American, United, Delta and Southwest. He blamed the DOJ for airline consolidation.
"We believe the DOJ has got it wrong on the law here and misses the point that this merger will create a national low-fare, high-quality competitor to the Big Four carriers which -- thanks to their own DOJ-approved mergers -- control about 80% of the U.S. market," Hayes said.
JetBlue and Florida-based Spirit have anticipated a legal challenge for weeks. The Justice Department had previously requested additional documents and depositions about JetBlue's proposal to buy Spirit, the nation's biggest budget airline. Negotiations over a possible settlement failed.
As signals grew stronger that the government would challenge the tie-up, JetBlue launched a pre-emptive campaign to make its argument that the deal would help consumers by creating a stronger competitor to the four larger carriers.
Hayes said he was disappointed but not surprised at the lawsuit.
"We said when we got the offer approved by the Spirit shareholders last year that we didn't think we would close until the first half of 2024, expecting a trial," he said on "CBS Mornings."
The lawsuit is the latest by the Biden administration to seek to block mergers in industries including health care, sugar refining, video gaming and publishing. It has already lost the health care and sugar battles.
"They don't seem to be afraid of losing cases. They're hoping that if they win some, that will set a precedent and help them deter other mergers that they view as anti-competitive," said Florian Ederer, an antitrust expert at Yale University. He thinks the government has a strong case against the JetBlue deal.
The Justice Department was under pressure from Democratic lawmakers and consumer advocates who complained about a wave of earlier mergers. In 2021, the administration took a more aggressive approach, suing to kill a limited partnership between JetBlue and American Airlines in the Northeast. A federal judge in Boston is expected to issue a ruling soon, after a non-jury trial last fall.
JetBlue and Spirit would control a little over 9% of the domestic air-travel market, far smaller than American, Delta, United and Southwest. JetBlue executives repeatedly said their deal was not like Pepsi buying Coca-Cola -- a line that Hayes repeated Tuesday.
However, their concentration is much higher on certain routes in the East. The Justice Department lawsuit said the two account for nearly 50% of the traffic between Boston and Miami and Fort Lauderdale, and nearly 90% between Boston and San Juan, Puerto Rico.
The Justice Department sued to block the last megadeal, American's 2013 merger with US Airways, then reached a settlement that required the carriers to give up some gates and takeoff and landing slots at several major airports. Before that, the government allowed Delta to buy Northwest, United to merge with Continental, and it later let Southwest buy AirTran.
Last year, JetBlue torpedoed a deal between Spirit and Frontier Airlines, then beat Frontier in a bidding war. Frontier CEO Barry Biffle argued that regulators would block a JetBlue-Spirit deal but not a tie-up with his airline, a similar discount carrier.
To counter Biffle's argument, JetBlue agreed to pay Spirit shareholders US$400 million plus US$70 million to the company if the merger dies for antitrust reasons.
The largest union for flight attendants, the Association of Flight Attendants, reiterated its support for the merger Tuesday, which it said would lift pay and benefits for Spirit crews that it represents.
But the American Economic Liberties Project, which opposes corporate consolidation, praised the Justice Department for seeking to block the deal, saying it would let JetBlue "gobble up a low-cost competitor" and boost prices.
New York, Massachusetts and the District of Columbia joined the federal lawsuit. Florida dropped its review of the merger after the airlines agreed to expand in Fort Lauderdale, Orlando and other airports in the state.
Republicans on Sunday sought to distance themselves from Donald Trump's latest insults of Democratic nominee Kamala Harris during a rambling weekend rally in Wisconsin in which he called her 'mentally disabled.'
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
An Ottawa driver has been charged with stunt driving after being caught going 154 km/h on Highway 417, according to the Ontario Provincial Police (OPP).
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
WeightWatchers CEO Sima Sistani, who pushed the company into embracing weight-loss drugs, is leaving the position after a two-and-a-half year stint.
A fire at a Georgia chemical plant apparently caused by a sprinkler head malfunction Sunday morning is forcing evacuations and road closures in the area, according to Rockdale County officials.
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
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A commemorative rally marking the fourth anniversary of Joyce Echaquan’s death will take place in Ville-Marie on Saturday afternoon.
Alberta's premier spoke to calls for an outside, independent investigation into the death of Jon Wells during an incident involving Calgary police last week.
The union representing longshore workers at the Port of Montreal says work at two terminals could come to a standstill next week as the union served a 72-hour strike notice today.
A child was sent to hospital after being attacked by a coyote in northwest Calgary.
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
Toronto police are urging anyone with information, including video footage, to contact them after a man was fatally stabbed in north Scarborough on Saturday evening.
A fire at a Georgia chemical plant apparently caused by a sprinkler head malfunction Sunday morning is forcing evacuations and road closures in the area, according to Rockdale County officials.
U.S. President Joe Biden said he would speak with Israeli Prime Minister Benjamin Netanyahu, and believes that an all-out war in the Middle East must be avoided.
Tim Walz and JD Vance might have the chance to reshape the political landscape Tuesday in their first and only debate.
Riding in a black SUV with tinted windows, lawyer Mariel Colon rolls up to the gates of a remote mansion, strolling past a security guard side-by-side with Emma Coronel, the wife of notorious drug lord JoaquÃn 'El Chapo' Guzman.
Newly emerged film footage of U.S. President John F. Kennedy's motorcade speeding down a Dallas freeway toward a hospital after he was fatally wounded sold at auction Saturday for US$137,500.
Republicans on Sunday sought to distance themselves from Donald Trump's latest insults of Democratic nominee Kamala Harris during a rambling weekend rally in Wisconsin in which he called her 'mentally disabled.'
The Liberal government is announcing more details on its existing strategy and funding to fight hate crimes.
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
A man from Alberta has been at the Medipal International Hospital in Kampala, Uganda for over two months with a hefty medical bill. He says he can’t leave until it’s been paid for.
More than 550 symptomatic people responded to an online questionnaire about a gastrointestinal illness at a Prince Edward Island shellfish festival last weekend.
A partial masking mandate has returned to Nova Scotia hospitals and provincially run healthcare facilities for visitors and healthcare workers.
Canadian innovators and technical leaders gathered in Ottawa Thursday to demonstrate the latest cutting-edge technology.
SpaceX launched a rescue mission for the two stuck astronauts at the International Space Station on Saturday, sending up a downsized crew to bring them home but not until next year.
Trees haven't grown on the Falkland Islands for thousands of years. But tree trunks and branches preserved in peat suggest the islands were once home to a forest.
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
Francis Ford Coppola’s decades-in-the-making, self-financed epic 'Megalopolis' flopped with moviegoers, while the acclaimed DreamWorks Animation family film 'The Wild Robot' soared to No. 1 at the weekend box office.
Given the sudden popularity of Moo Deng, the Thai national treasure whose name roughly translates as 'bouncy pork,' it was only a matter of time before someone turned her into a digital asset.
A strike by grain terminal workers at the Port of Metro Vancouver has ended, their employer announced Friday night.
When Annie Korver sits down with a new corporate or small business client, she encourages them to focus first on the 'truth' part of Truth and Reconciliation.
The U.S. Department of Transportation said Friday it had fined Air Canada US$250,000 for operating flights in 2022 and 2023 in prohibited Iraqi airspace.
While libraries might be stereotyped by some as boring or outdated, they’ve become popular digital destinations for young viewers on TikTok.
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Matt Perrault has shipped animals in and out of Canada on behalf of owners for more than two decades, handling creatures ranging from birds to bearded dragons, rabbits and ferrets.
When the key to a win is work ethic, it is not surprising to see Mattias Ekholm rise to the occasion. Ekholm had a goal and two assists as the Edmonton Oilers snapped a three-game skid with a 5-4 victory over the Seattle Kraken on Saturday.
On an eventful Saturday at the Presidents Cup, the U.S. took an 11-7 lead over an International team that saw big performances from the world's No. 1 ranked golfer, Scottie Scheffler.
The Toronto Raptors have confirmed that Vince Carter's No. 15 will be the first number to be retired by the NBA franchise.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
A U.S. driver somehow squeezed her vehicle through a parkade hallway at a Metro Vancouver casino Thursday, before getting stuck at an elevator bank.
More than 12,000 vehicles in Canada are included in two separate recalls by Toyota Motor Corp. and Mazda.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
When a group of B.C. filmmakers set out on a small fishing boat near Powell River last week, they hoped to capture some video for a documentary on humpback whales. What happened next blew their minds.
A pizza chain in Edmonton claims to have the world's largest deliverable pizza.
Sarah McLachlan is returning to her hometown of Halifax in November.
Wayne MacKay is still playing basketball twice at Mount Allison University at 87 years old.
A man from a small rural Alberta town is making music that makes people laugh.
An Indigenous artist has a buyer-beware warning ahead of Sept. 30, the National Day for Truth and Reconciliation.
Police are looking to the public for help after thieves broke into a Lethbridge ice creamery, stealing from the store.
An ordinary day on the job delivering mail in East Elmwood quickly turned dramatic for Canada Post letter carrier Jared Plourde. A woman on his route was calling out in distress.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
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A large crowd of people hoping to collect a piece of Toronto history gathered outside the ;Leslieville dollhouse' Sunday, as the new owners of the beloved east-end home gave away the dolls, toys, knick-knacks, and teddy bears that covered the property.
A grassroots organization is calling on the provincial government to reopen the Ontario Science Centre after it was abruptly closed in June following the discovery of structural issues in the building.
One person was injured in a stabbing at Moss Park early Sunday morning, Toronto police say.
Calgarians gathered for a rally on Sunday in support of the people of Lebanon as conflict between Israel and Hezbollah continues to escalate in the region.
A child was sent to hospital after being attacked by a coyote in northwest Calgary.
Alberta's premier spoke to calls for an outside, independent investigation into the death of Jon Wells during an incident involving Calgary police last week.
With CTV broadcasting NFL football games on Sundays this season, Â鶹´«Ã½ at Six with Austin Lee will be broadcasting live on our website and the Â鶹´«Ã½ App.
The federal holiday on Sept. 30 will bring some schedule changes in Ottawa as Canada marks the National Day for Truth and Reconciliation.
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Provincial police (SQ) say a head-on crash on Highway 30 in Candiac has left two people dead.
The provincial Crown corporation in charge of liquor sales in Quebec says a computer issue resulted in all its products being temporarily listed at 30 per cent off on its website.
A new Crave original series inspired by Leonard Cohen's iconic song "So Long, Marianne" delves into the complex love story between the renowned songwriter and his muse, Marianne Ihlen.
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A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
Women entrepreneurs from across New Brunswick were front and centre at a ‘pop-up shop’ showcase on Sunday.
The East Coast Ukrainian Festival kicked off at Pier 21 in Halifax on Saturday, celebrating Ukrainian culture and traditions.
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Vintage collectors from all corners of Canada gathered at Assiniboia Downs Saturday to shop and show off a variety of trinkets and treasures.
The National Day for Truth and Reconciliation takes place on Sept. 30 every year and is meant to recognize residential school survivors and their families.
The Town of Lumsden held their ninth annual Scarecrow festival Saturday.
The Saskatchewan Roughriders moved into second place in the CFL's West Division with a 29-16 victory over the Ottawa Redblacks on Saturday.
People in Guelph may notice a new addition at the entrance to Franchetto Park in Guelph.
A young motorcyclist has been taken to an out-of-region hospital after a single vehicle crash in Woolwich Township.
A grassroots organization is calling on the provincial government to reopen the Ontario Science Centre after it was abruptly closed in June following the discovery of structural issues in the building.
RCMP are seeking tips after a church on Main Street in Loon Lake burned to the ground.
Saskatoon Police Service has arrested a suspect in connection with two separate stabbing incidents that occurred earlier this month.
Minister of Health Everett Hindley wrote to healthcare provider unions on Friday inviting them to join a nursing task force, something the government previously said no to.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
The CEO of the Ottawa Mission is responding to controversial comments made this week by Premier Doug Ford about those living in homeless encampments that received swift blowback from advocates.
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
On Saturday night at her parents’ home in Delaware, Ont. the Olympic bronze medallist in pole vault welcomed everyone who played a role in getting her to the podium in Paris.
The fourth annual National Day for Truth and Reconciliation in Canada is on Monday, Sept. 30.
On Saturday, just before 10:00 p.m., police were called to the intersection of Richmond and Huron Streets for a welfare check.
A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.
OPP officers arrested a suspect while he was in the middle of a possible theft Sunday morning in Wasaga Beach.
Members of the Southern Georgian Bay OPP and the Canadian Anti-Fraud Centre (CAFC) are sounding the alarm on a rising number of online and phone scams targeting residents.
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
The BSI aims to elevate Black academic excellence, promoting scholarship, mentorship, and cultural knowledge.
The fourth annual National Day for Truth and Reconciliation in Canada is on Monday, Sept. 30.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
A man was found dead in a home in the Ditidaht First Nation on Vancouver Island Saturday morning, prompting local council to ask residents to shelter in place.
For decades, Melven Jones couldn’t talk about what happened to him as a child. He didn’t even remember it.
Fire crews in Vernon, B.C., responded to a large house fire early Saturday morning.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
The sentencing for three men convicted of helping lead and coordinate the COVID-19 protest blockade at Coutts, Alta., in 2022 has been delayed.
A 10-year-old boy from Lethbridge is being praised as a hero after a routine summer outing at the pool nearly turned tragic for his friend.
A man and woman have been charged after a Lethbridge ice creamery was broken into earlier this week. Staff arrived at Cookie Crimes, in the 300 block of Sixth Street South, just before 5:30 a.m. on Monday to discover the front window broken.
Sault residents may notice some commotion on the Algoma University campus over the next two weeks as a team conducts an archaeological search.
The Pride crosswalk in downtown Sault Ste. Marie, Ont., has been hit by vandalism for the second time in less than three months.
Despite a lead at mid-game in front of a near-capacity home crowd, the Sudbury Wolves dropped their first game of their OHL regular season to Barrie, 3-1.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
A soccer game in England on Tuesday night drove a spike in online traffic across the Atlantic to a website launched by the Newfoundland and Labrador government.
Newfoundland and Labrador sponsored a minor football team in England, now they’re about to play one of the biggest clubs in European soccer.
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