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Biden administration moving toward blocking JetBlue-Spirit merger

Biden administration moving toward blocking JetBlue-Spirit merger

According to Politico on Friday, which cited five people with knowledge of the situation, the Justice Department is expected to file a suit to block the proposed $3.8 billion merger of JetBlue Airways Corp and Spirit Airlines Inc.

According to the article, the DoJ may file a lawsuit as early as March. It also stated that different individuals in the department’s anti-trust section had differing views over whether to initiate a case or not.

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In a statement sent through email, JetBlue stated, “We continue to work through the regulatory process to explain how this merger will promote competition in the airline market.” In Friday’s extended trading, shares of JetBlue and Spirit were unchanged. As the DoJ continued its anti-trust investigation earlier this week, JetBlue representatives responded to inquiries and provided depositions.

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This week, Spirit Airlines Inc. stated that it anticipates U.S. antitrust authorities would decide within the “next 30 days or so” whether to approve the low-cost carrier’s $3.8 billion merger with JetBlue Airways Corp. Spirit CEO Edward Christie stated on an investor call that the company was “now waiting to see whether the Department of Justice (DOJ) filed suit to halt the deal or enables us to proceed.”

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JetBlue has proposed to sell Spirit’s assets in New York, Boston, and some Florida locations in order to satisfy the DOJ and the Transportation Department, which is providing advising input on the merger clearance process. However, DOJ antitrust chief Jonathan Kanter has criticized utilizing settlements to address competition issues in mergers, preferring to litigate to stop problematic deals entirely.

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Air India Express Aircraft Engine Part Falls Outside Delhi Airport; DGCA Orders Probe

Air India Express flight skids off runway while landing at Kochi airport

The Directorate General of Civil Aviation (DGCA) has launched an inquiry following reports that metal fragments were discovered at Delhi’s Indira Gandhi International Airport after an Air India Express flight made an emergency landing on Monday evening.

The emergency landing was prompted by a detected engine fault, but fortunately, the landing was executed safely without any injuries to the passengers.

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The situation began when crew members of the Air India Express flight reported an engine issue, leading to the emergency landing. The DGCA has confirmed that a thorough investigation is underway and has directed that the aircraft undergo a comprehensive safety inspection.

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The discovery of metal debris outside the airport has raised concerns, prompting the DGCA to probe whether these fragments are linked to the aircraft involved in the emergency landing. Authorities are particularly focused on whether the metal pieces, which were found near the airport, originated from the same Air India Express flight that experienced engine trouble.

While preliminary assessments suggest that the debris could be a broken blade from an aircraft engine, the exact source remains unconfirmed. The airline has yet to verify if the metal fragments are from their aircraft.

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The Delhi Police, working in conjunction with the DGCA, have initiated their own investigation to determine the origin of the metal pieces. A technical team is set to analyze whether the fragments are associated with the aircraft in question. As the investigation continues, a case has been filed with the airport authority to address the matter.

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