Warren Seeks Explanation for Allegations that Internal JetBlue Documents Predict Massive Fare Increases, Service Cuts if JetBlue-Spirit Merger is Approved
JetBlue CEO Claimed Publicly that Airfares Would Go Down After Merger
“If reports about the information in these …documents are correct, they reveal that you have misled the public about the impacts of your merger – and …that the merger will result in higher costs and reduced service for airline passengers.”
Washington, D.C. – Today, United States Senator Elizabeth Warren (D-Mass.) sent a letter to JetBlue CEO Robin Hayes calling on him to provide an explanation for reports that recently revealed internal JetBlue analysis predicting massive fare increases and service cuts if regulators approve the proposed JetBlue-Spirit merger. In the letter, the Senator reiterated that the Department of Transportation (DOT) and antitrust regulators must oppose the deal and raised concerns about the possibility that JetBlue provided a publicly misleading description of the impacts of the merger.
According to these reports, JetBlue’s internal estimates forecasted “that fares on Spirit planes could go up by as much as 40%,” following the merger, and that “the impact of the deal will go beyond just passengers on Spirit planes.” JetBlue allegedly “acknowledge(d) that Spirit’s exit from a route results in market-wide price increases of all other airlines serving that route by 30%.” This comes after Hayes publicly shared in March that prices on tickets will “absolutely” go down when asked if the public “should root for this merger.”
“If reports about the information in these redacted documents are correct, they reveal that you have misled the public about the impacts of your merger – and they reveal that the merger will result in higher costs and reduced service for airline passengers. For these reasons, the Department of Transportation (DOT) and antitrust regulators must oppose the deal. The possibility that you have provided a publicly misleading description of the impacts of the merger – which follows reports that you attempted to rig the DOT’s evaluation of the deal – requires an explanation,” wrote Senator Warren.
Senator Warren has been continuously outspoken about the JetBlue-Spirit merger. On June 23, Senator Warren and Representative Katie Porter (D-Calif) alongside Representatives Greg Casar (D-Texas), Jesus Garcia (D-Ill), Pramila Jayapal (D-Wash), and Jan Schakowsky (D-Ill) sent a letter to Transportation Secretary Pete Buttigieg urging DOT to resist JetBlue’s misleading tactics to rig DOT’s evaluation of the airline’s application to consolidate with Spirit Airlines and urging DOT to block the merger. On September 16, 2022, Senator Warren sent a letter to Secretary of Transportation Pete Buttigieg, urging DOT to use its full statutory authority to address consolidation in the airline industry and expressing serious concerns about the proposed merger between JetBlue and Spirit Airlines.
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