The Hill: Frontier, Spirit merger likely to draw DOJ scrutiny

February 7, 2022 Media

The proposed merger between Frontier and Spirit airlines announced Monday is likely to draw scrutiny from the Biden administration, which has sought to crack down on mega-mergers and frequently bemoans the domination of the airline industry by a handful of companies.

The budget carriers on Monday made the case that the $6.6 billion deal will allow the newly formed company to take on the four big airlines that service most U.S. flights, providing more consumers with cheaper options.

All eyes are on Assistant Attorney General Jonathan Kanter, an outspoken critic of mega-mergers who said last month that the DOJ will challenge any merger that “substantially” lessens competition.

“I think there’s good reason to believe, without knowing what’s going on inside, that Kanter will take a look at this deal, certainly,” said Robyn Shapiro, a spokesperson for the American Economic Liberties Project, an anti-monopoly group that is pushing the Biden administration to tackle corporate consolidation.

“What we’ve seen with most mergers is that corporate executives tout lower fares for customers, then fail to deliver on those promises and all of the other promises they make,” she added.