JetBlue-Spirit merger blocked by more states in an antitrust lawsuit

Several states, including California, have joined the U.S. Justice Department's lawsuit against JetBlue Airways, which is seeking to block the deal between JetBlue Airways and rival discount carrier Spirit Airlines.

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The lawsuit, which was filed in early March, was not only joined by California, but also Maryland, New Jersey, and North Carolina.

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“In the coming months, we will be working alongside our state law enforcement partners to litigate this important case, with a goal of preventing JetBlue from eliminating its rival, Spirit,” said Principal Deputy Assistant Attorney General Doha Mekki in a statement.

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The United States Justice Department filed a lawsuit against Southwest Airlines on March 7 seeking to block the merger, claiming the merger will "lead to a rise in fares and a reduction in seating, resulting in millions of dollars in lost revenues."

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In response to the new states joining, both airlines declined to comment immediately.

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Robin Hayes, JetBlue's CEO, defended the deal in an interview with Reuters this month and said it would benefit consumers by saving them money and increasing the number of seats that are available.

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It is possible that adding state attorneys general to the lawsuit could mean that there will be additional staffing for litigation, as well as additional expertise regarding the potential effects of the deal on specific states.

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This lawsuit is the latest attempt of the government of Vice President Joe Biden to put a stop to further consolidation in industries dominated by a few powerful companies as a result of a few large companies gaining too much market share.

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As part of the merger, Florida Attorney General Ashley Moody had closed an investigation into the deal following the airlines' agreement to increase the number of seats at both Orlando and Fort Lauderdale airports by at least 50% if the merger were to go through.