JetBlue And Spirit Ending Their $3.8 Billion Merger Plan After A Federal Judge Blocks Deal

(Associated Press) –  JetBlue and Spirit Airlines are ending their proposed $3.8 billion merger after a federal judge blocked the deal, ruling it would hurt competition.

JetBlue said Monday that even though both companies still believe in the benefits of a combination, they felt they were unlikely to meet the required closing conditions before a July 24 deadline.

The airlines say they are mutually agreeing that terminating the deal is the best decision for both.

A merger would have eliminated Spirit, the nation’s biggest discount airline.

The Justice Department sued to block the deal and won in court.