Foley & Lardner LLP Partner Benjamin Dryden is quoted in the Reuters article, “Analysis: JetBlue faces ‘uphill battle’ in merger fight with government,” discussing the U.S. Department of Justice’s recently filed lawsuit to prevent JetBlue from purchasing Spirit Airlines.
Dryden noted that it could be harder for the government to argue the proposed merger would lead to higher prices as JetBlue and Spirit are relatively small players in the U.S. airline market. He said that JetBlue should focus on its divestiture offer, as the company has said it plans to sell Spirit gates, takeoff, and landing rights as well as related facilities at several airports. “If I’m JetBlue, that’s where I focus right now, developing that divestiture offer and lining up a buyer to ‘litigate the fix,'” he said.
Dryden added that the airlines could argue that two price-slashing carriers will do a better job of making the big legacy carriers sweat if they work together.