US sues to block JetBlue from buying Spirit Airlines in $3.8B merger

block JetBlue Airways' $3.8 billion purchase of Spirit Airlines, saying Tuesday that the deal would reduce competition and drive up air fares for consumers.The Justice Department said the tie-up would especially hurt cost-conscious travelers who depend on Spirit to find cheaper options than they can find on 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.New York, Massachusetts and the District of Columbia joined the lawsuit.

JetBlue and Spirit vowed to continue fighting to salvage their agreement.JetBlue and 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 that the government would challenge the tie-up, JetBlue CEO Robin Hayes and other company executives launched a pre-emptive campaign to make their argument that the deal would help consumers by.