JetBlue Airways recently made internal estimations regarding potential fare increases on certain routes if the company successfully acquires Spirit Airlines and eliminates it as a competitor. These calculations were included in court filings earlier this week, which JetBlue claims were improperly redacted.
In response to the news, JetBlue has stated that the information from the filings is being taken out of context and used to distort the facts. Consumer advocates have seized upon this accidental disclosure, supporting the Justice Department’s antitrust lawsuit aimed at blocking JetBlue’s $3.8 billion purchase of Spirit, the largest discount airline in the United States.
Before the government lawsuit, a group of about two dozen consumers had already filed a lawsuit against JetBlue and Spirit in a Boston district court last November. They claimed that the merger would inevitably lead to reduced competition and higher prices.
Although the documents filed on Tuesday in the consumer lawsuit were initially redacted, it was later discovered that by copying and pasting the text into a new document, the hidden information became visible.
The revelation was initially reported by Law360, a trusted source for legal news. However, it has been confirmed by Law360 that the documents involved are no longer publicly posted.
JetBlue’s Argument Challenged by Disclosures
JetBlue’s claim that their merger with Spirit Airlines would benefit consumers and enhance competition against industry giants like American, Delta, and United is cast into doubt by recently revealed documents. These documents seem to contradict JetBlue’s argument and provide support to consumer advocates who oppose the merger.
In response to the disclosures, JetBlue issued a statement defending their position but acknowledging that certain information in the documents was not properly redacted. They argued that, when taken out of context, this information creates an inaccurate understanding of the facts.
However, consumer advocates argue that these disclosures only further bolster their concerns about the JetBlue-Spirit deal. William J. McGee, an aviation expert at the American Economic Liberties Project, which actively opposes industry consolidation, asserts that these internal documents from JetBlue themselves serve as an indisputable source. He claims that they strongly indicate that a merger between JetBlue and Spirit would ultimately result in higher fares and less competition.
Despite JetBlue’s assurances of more affordable prices and improved service for customers as a result of the merger with Spirit, critics argue that their claims are empty and contradicted by their own internal strategies.
In conclusion, the recent disclosures have cast doubt on JetBlue’s assertions about the benefits of their proposed merger with Spirit Airlines. While the airline maintains their stance, consumer advocates find the information in the documents to be compelling evidence that the merger could potentially harm consumers rather than benefiting them.
