DOJ Sues to Stop JetBlue's Purchase of Spirit

JetBlue is facing an antitrust lawsuit from the DOJ regarding its $3.8 billion takeover of Spirit Airlines. The DOJ alleges that the merger would increase ticket prices and reduce options for travelers. The Department of Transportation is also expected to block the transfer of Spirit's operating certificate. Despite regulatory challenges, if the merger succeeds, JetBlue would become the fifth-largest US carrier, potentially gaining more pricing power. The market reacted with Spirit shares dropping and JetBlue shares slightly increasing.

What was the initial market reaction to the news of JetBlue's potential antitrust suit?

• Spirit shares increased by 9%

• Spirit shares decreased by 9%

• JetBlue shares increased by 9%

• JetBlue shares decreased by 9%

What is the main concern of the Department of Justice regarding the JetBlue and Spirit merger?

• It will lead to higher ticket prices and fewer options for travelers

• It will increase competition in the airline industry

• It will improve customer service

• It will decrease JetBlue's market share

What unprecedented action is the Department of Transportation expected to take?

• Block the transfer of Spirit's operating certificate

• Increase funding for JetBlue

• Approve the merger without conditions

• Decrease regulations on the airline industry

If the merger is successful, what will be JetBlue's rank among US carriers based on domestic traffic?

• First

• Fifth

• Tenth

• Second

How might the merger affect other major airlines?

• It will have no impact on their pricing strategies

• It will lead to a decrease in their market share

• It will allow them to increase their prices

• It will force them to lower their prices