{"id":52256,"date":"2023-12-02T23:00:32","date_gmt":"2023-12-02T17:30:32","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=52256"},"modified":"2023-12-06T01:32:36","modified_gmt":"2023-12-05T20:02:36","slug":"jetblue-spirit-merger-blocking-trial-by-doj-closing-arguments-tomorrow","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2023\/12\/02\/jetblue-spirit-merger-blocking-trial-by-doj-closing-arguments-tomorrow\/","title":{"rendered":"JetBlue Spirit Merger Blocking Trial by DOJ has Closing Arguments Tomorrow"},"content":{"rendered":"\n

BOSTON-<\/strong> Closing arguments in the Department of Justice’s (DOJ) trial, aiming to block JetBlue’s<\/a> proposed $3.8 billion acquisition of Spirit Airlines<\/a>, are scheduled for Tuesday.<\/p>\n\n\n\n

The trial’s remaining days, initially set to continue from Thursday onwards, were canceled, as stated in a court filing on Wednesday.<\/p>\n\n\n\n

\"JetBlue
Photo: Live and Lets Fly<\/figcaption><\/figure>\n\n\n\n

JetBlue Spirit Trial Arguments<\/h2>\n\n\n\n

An explanation did not accompany the decision to cancel, but a court observer suggested to Seeking Alpha<\/em> that it might be due to the exhaustion of witness presentations. <\/p>\n\n\n\n

Additionally, a post on X by a Dealreporter writer earlier on Wednesday indicated that both sides had completed presenting their witnesses.<\/p>\n\n\n\n

Spirit Airlines (NK) observed a 5% increase in its shares on Wednesday, marking a 72% surge over the past nearly three weeks, potentially reflecting optimism that JetBlue (B6) could secure a favorable court decision, allowing the completion of its acquisition of Spirit. JetBlue (JBLU) itself experienced a 1.8% gain on Wednesday.<\/p>\n\n\n\n

The spread in the deal remains significantly wide, with Spirit trading at $15 compared to the announced deal price of approximately $30.<\/p>\n\n\n\n

\"\"
Photo: Spirit Airlines<\/figcaption><\/figure>\n\n\n\n

Expecting Judgment in Favour of Airlines <\/h2>\n\n\n\n

As of last Tuesday, Dealreporter reported that JetBlue and Spirit had not engaged in any settlement discussions with the Department of Justice (DOJ). Despite this, both airlines have consistently expressed their openness to reaching a settlement.<\/p>\n\n\n\n

In March, the DOJ initiated legal action to prevent the merger between Spirit and JetBlue. In an attempt to address DOJ concerns, JetBlue (JBLU) introduced a divestiture plan in September.<\/p>\n\n\n\n

JetBlue’s September announcement outlined the transfer of all Spirit holdings at Boston<\/a> and Newark <\/a>airports to Allegiant Travel Company, along with the divestiture of five gates and ground facilities at Fort Lauderdale’s airport. <\/p>\n\n\n\n

In June, JetBlue had previously revealed plans to divest all of Spirit’s holdings at New York’s LaGuardia Airport to Frontier (F9).<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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JetBlue Spirit $3.8 Billion Merger Antitrust Trial Ends, Judge Put Conditions<\/a><\/blockquote>