JetBlue Airways (JBLU) and Spirit Airlines (SAVE) took their case to the U.S. appeals court on Monday, seeking to reverse a judge’s decision that halted their $3.8 billion merger following a request from the U.S. Department of Justice.
In a brief submitted to the 1st U.S. Circuit Court of Appeals in Boston, the airlines argued that the judge’s ruling was flawed, despite acknowledging that the merger would enhance competition and lower prices for the majority of consumers.
JetBlue and Spirit highlighted their intent behind the merger, emphasizing that combining forces would position JetBlue as a stronger competitor against the dominant carriers in the U.S. aviation industry.
However, U.S. District Judge William Young’s decision, based on a non-jury trial, concluded that the merger would adversely affect consumers by eliminating Spirit’s competitive low fares.
The Justice Department is scheduled to respond to the airlines’ appeal in April, with arguments set for June, ahead of the merger agreement’s July 24 deadline.
The appeal stems from an antitrust lawsuit filed by the Justice Department and Democratic state attorneys general, who argued that the merger would reduce flight options and lead to higher prices for millions of travelers.
JetBlue had attempted to address regulatory concerns by agreeing to divest gates and slots at key airports, but the deal remains in limbo pending the outcome of the appeal.
