Spirit Airlines and the Antitrust Left

A case study in how Lina Khan’s theories about competition failed in the real world

WSJ editorial. Excerpts:

"In 2022 JetBlue offered Spirit a $3.8 billion merger lifeline so the combined companies could offer more competition for the four U.S. airline giants. Mr. Kanter’s Antitrust Division sued to block the merger in 2023 and prevailed in court in January 2024"

"Federal Judge William Young admitted Spirit’s financial troubles. He also agreed that “an expansion of all aspects of JetBlue’s business—including network, fleet and loyalty program—would allow for more vigorous competition with the Big Four, which carry most passengers in the country.”"

"He still ruled the merger an antitrust violation because it would eliminate one low-fare option on some routes."

"Spirit declared bankruptcy in November 2024, long before the Iran war fuel spike. Now it’s shutting down for good."

"there will be less competition than if the merger had been allowed."