U.S. Transportation Dept denies JetBlue, Spirit exemption request, citing DOJ lawsuit

WASHINGTON (Reuters) – The U.S. Transportation Department on Friday denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Department of Justice’s (DOJ) antitrust lawsuit filed earlier this month seeking to block the deal.

The Transportation Department said a denial was warranted in light of a White House executive order that it “coordinate competition efforts, DOJ’s conclusion that the proposed merger would have anti-competitive effects, and the pendency of the federal lawsuit challenging the legality of the transaction.”

The government challenged JetBlue’s planned $3.8 billion acquisition of ultra-low cost carrier Spirit, saying it would “combine two especially close and fierce head-to-head competitors.”