As JetBlue Airways CEO Robin Hayes expected, the U.S. Justice Department on Tuesday sued to stop the airline's proposed $3.8 billion acquisition of discount rival Spirit Airlines, claiming the deal would lead to higher fares and fewer choices for millions of customers. The CEO, who plans to fight the lawsuit by arguing that the government has greenlit many mergers by larger rivals in the last twenty years, says combining with Spirit would accelerate JetBlue's growth but doesn't represent a change in its overall strategy.
Acquiring Spirit would allow JetBlue to expand its fleet of planes more quickly and thus serve smaller airports, provide the combined airline with more clout with airport operators, and win the right to operate more flights out of key airports.
