JetBlue and Spirit Call Off Their Merger

JetBlue Airways and Spirit Airlines announced on Monday that they would walk away from their planned $3.8 billion merger after federal antitrust regulators successfully challenged the deal in court. JetBlue said it would pay Spirit $69 million to exit the deal. From a report: A federal judge in Boston blocked the proposed merger on Jan. 16, siding with the Justice Department in determining that the merger would reduce competition in the industry and give airlines more leeway to raise ticket prices. The judge, William G. Young of the U.S. District Court for the District of Massachusetts, noted that Spirit played a vital role in the market as a low-cost carrier and that travelers would have fewer options if JetBlue absorbed it. "We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines' interests are better served by moving forward independently," JetBlue's chief executive, Joanna Geraghty, said in a statement on Monday. "We wish the very best going forward to the entire Spirit team." JetBlue and Spirit appealed Judge Young's decision. JetBlue filed an appellate brief last week arguing that the deal should be allowed to go through. But in a regulatory filing on Jan. 26, JetBlue said it might terminate the deal. Spirit said in its own filing the same day that it believed "there is no basis for terminating" the agreement. Read more of this story at Slashdot.