JetBlue acquires low-cost carrier Spirit

The transaction implies the merger of two of the biggest low-cost airlines worldwide.

JetBlue was advised in Colombia by law firm Gómez-Pinzón on the antitrust assessment and merger control procedure before the Colombian Civil Aviation Authority (Aerocivil)

“Attaining a clearance decision was highly complex as the parties have high market shares in several international routes between Colombia and the US, which gave rise to preliminary antitrust concerns from the authority in some of the routes affected by the transaction,” Gómez Pinzón said in a statement.

The firm’s team was led by partner Mauricio Jaramillo, with senior associate Biviana Helo, and associates Miguel Huertas and Andrés Quiroz.

The $3.8-billion deal’s global coordination was carried out by law firm Shearman and Sterling.

The deal was almost scuppered in early March when the US Department of Justice filed an antitrust lawsuit in federal court in Massachusetts alleging that JetBlue's plan to eliminate Spirit and merge its planes, routes and employees into JetBlue's higher priced operations would especially hurt budget-conscious consumers who rely on Spirit's ultra-low fares to be able to afford air travel.

"We allege that if allowed to proceed, this merger will limit choices and drive up ticket prices for passengers across the country," Attorney General Merrick Garland said at the news conference announcing the lawsuit. "And we further allege that the impact of this merger will be particularly harmful for travelers who rely on what are known as ultra-low cost carriers in order to fly."

The two airlines then filed an exemption application asking the Department of Transportation (DOT) to permit them to operate under common ownership prior to a requested transfer application that seeks approval to combine and operate international routes under one certificate.