JetBlue Airways estimates that it might increase fares on some routes by as much as 40% if it succeeds in shopping for Spirit Airways and eliminating the low-fare provider as a competitor on these routes.
The inner calculations appeared in courtroom filings made earlier this week, and which JetBlue says weren’t correctly redacted.
JetBlue mentioned Thursday that data from the filings is being taken out of context to distort the info.
Client advocates jumped on the information, saying that the unintentional disclosure helps the Justice Division’s antitrust lawsuit aiming to dam JetBlue’s $3.8 billion buy of Spirit, the nation’s largest low cost airline.
Even earlier than the federal government lawsuit, legal professionals for about two dozen customers sued JetBlue and Spirit final November in U.S. district courtroom in Boston, claiming that the merger would cut back competitors and result in greater costs.
Paperwork filed Tuesday in that case have been redacted, however in a method that made it doable to see the hidden data by copying and pasting the textual content into a brand new doc.
The revelation was first reported by Law360, which covers authorized information. Law360 advised USA At the moment that the paperwork are now not posted publicly.
The paperwork would appear to undercut JetBlue’s argument that customers would profit from the merger as a result of the mixed airline can be higher in a position to compete in opposition to giants like American, Delta and United.
In an announcement Thursday, New York-based JetBlue mentioned legal professionals for the customers “failed to properly redact certain information which, taken out of context, creates a completely inaccurate picture of the facts. We are confident that our merger with Spirit will give a much-needed boost to airline competition in the U.S. and result in more low fares and higher-quality service for customers.”
Client advocates who oppose the JetBlue-Spirit deal mentioned the disclosures help their argument.
“Those of us who have been warning that a JetBlue-Spirit merger would raise fares and stifle competition can now cite an unimpeachable source — JetBlue itself,” mentioned William J. McGee, an aviation professional on the American Financial Liberties Venture, which lobbies in opposition to trade consolidation. “JetBlue’s claims that this deal will benefit consumers are hollow and contradicted by JetBlue’s own internal schemes.”
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