The Department of Justice (DOJ) and Department of Transportation (DOT) are expected to take legal action against JetBlue Airways (NASDAQ:JBLU) Corporation over its proposed $3.8 billion takeover of Spirit Airlines as soon as Tuesday, according to a Bloomberg report citing people with knowledge of the matter.
The report said the DOJ 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.
The DOT is expected to begin a parallel proceeding to block the transfer of Spirit’s airline operating certificate as incompatible with the public interest, the report said.
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JetBlue told Bloomberg that there was a “high likelihood” of the DOJ filing an anti-trust lawsuit this week to block the takeover.
“We have always accounted for that in our timeline to close the transaction in the first half of 2024,” JetBlue said in a statement to Bloomberg.
“My expectation is that we will get sued by the DOJ this week,” JetBlue CEO Robin Hayes told The Wall Street Journal on Monday.
Shares of JetBlue were up 1.7% while Spirit Airlines Inc stock fell 7.6% on Monday afternoon.
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