The Justice Department and Department of Transportation are expected to take action as soon as Tuesday to block JetBlue Airways Corp.’s $3.8 billion takeover of Spirit Airlines Inc., according to people familiar with the case.
The Justice Department is expected to file an antitrust lawsuit in federal court, alleging that the elimination of Spirit would increase ticket prices and decrease options for travelers, according to the people, who spoke anonymously to discuss an ongoing case. The Department of Transportation is expected to begin a parallel proceeding to block the transfer of Spirit’s airline operating certificate as incompatible with the public interest, the people said.
The move by DOT is largely unprecedented in the modern era; the agency hasn’t used its authority to block the transfer of a certificate, or the formal federal approval to operate aircraft and carry passengers, among major airlines since the industry was deregulated in 1978.
