JetBlue Airways is facing a potential fare increase on certain routes of up to 40% if its acquisition of Spirit Airlines is successful, according to lawyers who are suing to block the deal. The lawyers made these estimations in court filings earlier this week, which JetBlue claims were not properly redacted. In response, JetBlue argues that the filings are based on the opposition lawyers’ interpretation of evidence and are taking facts out of context. Consumer advocates perceive this accidental disclosure as support for the Justice Department’s antitrust lawsuit against JetBlue’s $3.8 billion purchase of Spirit, the nation’s largest discount airline.
Even prior to the government lawsuit, around two dozen consumers filed a lawsuit against JetBlue and Spirit in November, claiming that the merger would reduce competition and result in higher prices. Documents submitted by the consumers’ lawyers on Tuesday contained redactions that were mistakenly done, allowing the hidden information to be revealed by copying and pasting the text. The claims were first reported by Law360, a legal news outlet, and the documents are no longer publicly available. These documents potentially undermine JetBlue’s argument that the merger would benefit consumers by enhancing competition against major airlines like American, Delta, and United.
JetBlue, headquartered in New York, stated on Thursday that the consumers’ lawyers “failed to properly redact certain information which, taken out of context, creates a completely inaccurate picture of the facts. We are confident that our merger with Spirit will give a much-needed boost to airline competition in the US and result in more low fares and higher-quality service for customers.” Consumer advocates opposed to the JetBlue-Spirit deal view these disclosures as supporting their argument. William J. McGee, an aviation expert at the American Economic Liberties Project, remarked, “Those of us who have been warning that a JetBlue-Spirit merger would raise fares and stifle competition can now cite an unimpeachable source—JetBlue itself.”
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