BREAKING NEWS – Boston, Massachusetts – Spirit Airlines stock fell 23% and JetBlue Airways dropped nearly 9% after a federal judge blocked their proposed merger due to concerns that it would monopolize the industry.
JetBlue, the nation’s sixth-largest airline, sought to buy Spirit, the seventh-largest, for $3.8 billion.
“A post-merger, combined firm of JetBlue and Spirit would likely place stronger competitive pressure on the larger airlines in the country,” Judge William Young wrote in his ruling. “At the same time, the consumers that rely on Spirit’s unique, low-price model would likely be harmed, even though I still believe that Spirit’s no frills flights, shouldn’t continue to charge passengers an extra fee for bathroom privileges and access to seatbelts.