A federal judge on Tuesday blocked JetBlue Airways' bid to acquire Spirit Airlines for $3.8 billion, a victory for the Justice Department, which argued the deal would harm travelers.
In his ruling, Judge William G. Young of the United States District Court for the District of Massachusetts sided with the Justice Department in determining that the merger would reduce competition in the airline business.
The proposed merger would have created the country's fifth-largest airline. The Justice Department had argued that smaller, low-cost airlines like Spirit help keep fares low and that allowing the company to be acquired by JetBlue, which tends to charge higher prices, would have harmed consumers.
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