Lawmakers Seek More Scrutiny for Frontier-Spirit Merger

Wednesday, March 16, 2022 at 02:20 PM ET

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Senator Bernie Sanders, (I-Vt.) is one seven lawmakers who say they've sent a letter to Jonathan Kanter, assistant attorney general for the antitrust division of the U.S. Department of Justice, and Transportation Secretary Pete Buttigieg urging them to take a look at Frontier Airlines’ planned acquisition of Spirit Airlines. [File photo: Shutterstock]

Key Takeaways:

U.S. lawmakers are urging the Biden administration to "closely review" Frontier Airlines' proposed $6.6 billion acquisition of Spirit Airlines.
Their primary concern is that the merger of the two largest ultra-low-cost carriers (ULCCs) would further concentrate and potentially monopolize the ULCC segment, creating a company four times larger than its nearest competitor.
Lawmakers warn the deal could lead to increased airfares and lower service quality for passengers, as well as reduced wages and poorer labor conditions for airline workers.

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Members of the U.S. House and Senate are urging the Biden administration to “closely review” Frontier Airlines’ planned acquisition of Spirit Airlines because of concerns the combined company “would further concentrate and even monopolize the ultra-low-cost carrier, or ULCC, segment of the industry.”

The group of lawmakers including Senators Elizabeth Warren (D-Mass.), Ben Ray Lujan (D-N.M.) and Bernie Sanders, (I-Vt.), and Representatives Rasshida Tlaib (D-Mich.), Katie Porter (D-Calif.), Jan Schakowsky (D-Ill.) and Alexandria Ocasio-Cortez (D-N.Y.), said they sent a letter outlining their concerns to Jonathan Kanter, assistant attorney general for the antitrust division of the U.S. Department of Justice, and Transportation Secretary Pete Buttigieg. In the letter they urged the Justice Department “to closely review this mega merger” for potential violations of antitrust laws.