In a candid moment, a prominent Biden administration figure has nearly acknowledged that the Justice Department’s decision to block a merger contributed to Spirit Airlines’ cessation, hinting that this move may have been misguided. The budget airline ceased operations on Saturday morning, sparking discussions on whether different choices could have altered its fate.
Neera Tanden, who once advised President Joe Biden, raised the possibility that a merger might have saved numerous jobs now hanging in the balance. Her comments have reignited debates about the Justice Department’s role in Spirit’s outcome.
Simultaneously, Senator Elizabeth Warren (D-Mass.) attempted to link Spirit’s downfall to former President Trump. However, she faced criticism for her involvement in thwarting the merger with JetBlue, a decision some believe could have changed Spirit’s trajectory.
In a post that went viral on X, Tanden questioned, “With today’s news of Spirit Airlines closing and the subsequent job losses, we need to sincerely evaluate if the decision by the Garland Justice Department to block the JetBlue merger was justified.”
“The choice may have been the right one, but any thorough analysis must weigh the significant impact on families affected by this outcome,” she added thoughtfully.
“Perhaps it was, but any analysis must consider as part of the equation the loss to so many families to decide.”
Spirit Airlines, which employed some 17,000 people, formally shuttered its operations on Saturday after bailout negotiations broke down.
In addition to eyeing a merger with JetBlue, it had also once been in talks with Frontier Airlines amid its financial woes, which were seemingly exacerbated by the war in Iran that caused a surge in jet fuel prices.
The Biden administration’s Justice Department, under then Attorney General Merrick Garland, had fought against New York-based JetBlue’s bid to purchase Spirit Airlines for some $3.8 billion.
“The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices,” Garland said after a court sided with the DOJ against the merger. “We will continue to vigorously enforce the nation’s antitrust laws.”
Tanden, a staunch progressive, made clear that she still pins more of the blame on President Trump, who mulled a $500 million bailout deal.
“Lord, of course Trump’s war was the Spirit Airlines killer here. I am simply asking if we should assess all evidence,” she said after her post went viral.
Meanwhile, Warren took heat online for her 2024 post cheering the Biden admin’s halt to a JetBlue merger with Spirit, arguing that such a deal “would have led to fewer flights and higher fares.”
“This is a Biden win for flyers!”
While Spirit Airlines was circling the drain last week, Warren underscored how consolidated the airline industry is.
“The Big Four airlines (American, Delta, Southwest, United) control 75% of the U.S. market. Fewer choices = higher prices for you,” she posted on X.
That drew a community note highlighting how she strongly opposed the JetBlue merger proposal with Spirit Airlines, which could have saved Spirit and made JetBlue stronger.
The Massachusetts progressive contended that high fuel prices from the war in Iran “was the nail in the coffin for twice-bankrupted Spirit airline.”
“[The] JetBlue merger failed because a judge, appointed by Ronald Reagan, said the deal was illegal. Republicans are desperate to shift blame from higher costs hitting families,” Warren argued.
She previously faulted Trump for starting the war in Iran, which caused oil prices to surge, for Spirit Airlines collapsing.
