A federal judge on Tuesday blocked JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines, a victory for the Justice Department, which had argued the deal would harm travelers.
In his decision, Judge William G. of the U.S. District Court for the District of Massachusetts. Young sided with the Justice Department in determining that the merger would reduce competition in the airline business.
The proposed merger would have created the country’s fifth largest airline. The Justice Department had argued that small, low-cost airlines like Spirit help keep fares low and that allowing JetBlue to acquire the company, which charges higher prices, would harm consumers.
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