Professional Documents
Culture Documents
Plaintiffs,
Defendants.
REDACTED
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TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1
ARGUMENT .................................................................................................................................. 4
A. The Merger Will Harm Consumers In At Least 700 Markets Across The
Country ......................................................................................................................... 7
IV. RESOLUTION IN THE GOVERNMENT’S CASE CANNOT “MOOT” THIS ACTION ................... 20
CONCLUSION ............................................................................................................................. 20
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TABLE OF AUTHORITIES
Cases
Am. Passage Media Corp. v. Cass Commc'ns, Inc.,
750 F.2d 1470 (9th Cir. 1985) .................................................................................................. 14
Ball Mem’l Hosp., Inc. v. Mut. Hosp. Ins., Inc.,
784 F.2d 1325 (7th Cir. 1986) .......................................................................................... 3, 4, 14
Brown Shoe Co. v. United States,
370 U.S. 294 (1962) .................................................................................................................... 2
Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc.,
429 U.S. 477 (1977) .............................................................................................................. 3, 14
California v. Am. Stores Co.,
492 U.S. 1301 (1989) (O’Connor, J., Circuit Justice) .............................................................. 14
California v. Am. Stores, Co.,
495 U.S. 271 (1990) .......................................................................................................... 2, 3, 14
Clapper v. Amnesty Int’l USA,
568 U.S. 398 (2013) .......................................................................................................... 3, 6, 11
FTC v. Indiana Fed'n of Dentists, 476 U.S. 447 (1986) ................................................................. 4
Lujan v. Defenders of Wildlife,
504 U.S. 555 (1992) .............................................................................................................. 3, 11
Malaney v. UAL Corp.,
No. 3:10-cv-02858-RS, 2010 WL 3790296 (N.D. Cal. Sept. 27, 2010)................................... 19
Palmyra Park Hosp. Inc. v. Phoebe Putney Mem’l Hosp.,
604 F.3d 1291 (11th Cir. 2010) ................................................................................................ 15
Rebel Oil Co. v. Atlantic Richfield Co.,
51 F.3d 1421 (9th Cir. 1995) ...................................................................................................... 4
St. Alphonsus Medical Center v. St. Luke’s Health System, Ltd.,
778 F.3d 775 (9th Cir. 2015) .................................................................................................. 4, 9
Susan B. Anthony List v. Driehaus,
573 U.S. 149 (2014) ................................................................................................................ 3, 6
United States v. Borden Co.,
347 U.S. 514 (1954) .................................................................................................................. 20
United States v. Falstaff Brewing Corp.,
410 U.S. 526 (1973) .................................................................................................................... 8
United States v. JetBlue and Spirit,
Case No. 23-cv-10511 (Mar. 7, 2023) ...................................................................................... 18
Zenith Radio Corp. v. Hazeltine Research, Inc.,
395 U.S. 100 (1969) .......................................................................................................... 2, 3, 14
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Statutes
15 U.S.C. § 18 ....................................................................................................................... 2, 5, 14
15 U.S.C. § 26 ........................................................................................................................... 2, 14
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INTRODUCTION
threat of injury” from the impending acquisition. Zenith Radio Corp. v. Hazeltine Research, Inc.,
395 U.S. 100, 130 (1969); 15 U.S.C. § 26. There is no need to show actual present harm. Id. A
merger will be held unlawful where its “probable future effect” is to lessen competition. Brown
Shoe Co. v. United States, 370 U.S. 294, 323, 332 (1962).
In this exceptional Section 7 case challenging the merger of JetBlue Airlines and Spirit
Airlines, the Defendants’ own admissions provide an astounding quality of direct evidence that
the merger not only threatens anticompetitive harm, it will almost assuredly result in it: higher
prices, reduced output, the elimination of choice in a vibrant rival, and the diminution of service
quality, among other harms. The evidence overwhelmingly shows that Plaintiffs regularly travel
the impacted routes and stand to suffer “concrete” and “imminent” antitrust injury; they are
consumers of air travel on the routes directly impacted by this merger. Defendants’ motion for
Defendants’ assertion that the undisputed evidence demonstrates Plaintiffs do not fly the
harmed routes requires ignoring the record evidence. The merger will impact well over 700
routes in the country, and likely more than 1,000. Yet, Defendants only analyzed Plaintiffs’
participation from an incomplete list of some 100 impacted routes. In choosing to do so,
Defendants waste the lion’s share of their motion attacking an irrelevant strawman. Defendants
also err by concluding, without basis, that the merger will only injure Spirit fliers. To do so, they
ignore more evidence, this time the testimony of their own corporate witness who admitted that
when Spirit exits a route, all the passengers on that route suffer anticompetitive effects,
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regardless of the airline they fly. To be sure, the Plaintiffs’ group includes consistent and regular
Spirit fliers, but their consumption of Spirit air travel is not a prerequisite to standing.
Finally, Defendants contend that Plaintiffs’ injuries are not irreparable. They fail to
recognize that the lessening of competition itself creates irreparable harm. Plaintiffs will suffer
myriad other harms from the merger that cannot be remedied by money damages: the loss of
consumer choice, diminutions in the quality of service, flight cancellations, lost baggage, and
losses in innovation, among others. The threat of these harms is well supported by the evidence –
evidence the Defendants unsurprisingly disregard. The motion is meritless and should be denied.
APPLICABLE LAW
Section 7 of the Clayton Act prohibits mergers whose effect “may be substantially to
lessen competition … in any line of commerce … in any section of the country.” 15 U.S.C. § 18.
“Section 7 itself creates a relatively expansive definition of antitrust liability: To show that a
merger is unlawful, a plaintiff need only prove that its effect ‘may be substantially to lessen
competition.’” California v. Am. Stores, Inc., 495 U.S. 271, 284 (1990) (emphasis in original).
By prohibiting mergers that may substantially lessen competition, Congress “indicate[d] that its
concern was with probabilities, not certainties,” and courts are to find violations where “the
probable future effect of the merger” is to lessen competition. Brown Shoe, 370 U.S. at 323.
Section 16 of the Clayton Act authorizes private plaintiffs to obtain injunctive relief for
any “threatened loss or damage” resulting from a violation of the antitrust laws. 15 U.S.C. § 26.
Since Section 16 requires only “‘threatened’ injury,” an injunction is available “even though the
plaintiff has not yet suffered actual injury.” Zenith, 395 U.S. at 130. To win an injunction, a
private plaintiff “need only demonstrate a significant threat of injury from an impending
violation of the antitrust laws.” Id. (citations omitted). The threatened injury must be an
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“antitrust injury,” that is, “injury of the type the antitrust laws were intended to prevent and that
flows from that which makes defendants’ acts unlawful.” Brunswick Corp. v. Pueblo Bowl-O-
Mat, Inc., 429 U.S. 477, 489 (1977). Among other things, “‘antitrust injury’ … means injury
from higher prices or lower output, the principal vices proscribed by the antitrust laws.” Ball
Mem’l Hosp., Inc. v. Mut. Hosp. Ins., Inc., 784 F.2d 1325, 1334 (7th Cir. 1986) (citing
Moreover, “the purpose of giving private parties … injunctive remedies was not merely
to provide private relief, but was to serve as well the high purpose of enforcing the antitrust
laws.” Zenith, 395 U.S. at 130. Section 16 “should be construed and applied with this purpose in
mind.” Id. at 131; see also Am. Stores Co., 495 U.S. at 284-85 (Section 16 was intended to
“encourage vigorous private litigation against anticompetitive mergers;” “was an integral part of
the congressional plan for protecting competition;” and “fits well in a statutory scheme that …
“To establish Article III standing, an injury must be ‘concrete, particularized, and actual
or imminent; fairly traceable to the challenged action; and redressable by a favorable ruling.’”
Clapper v. Amnesty Int’l USA, 568 U.S. 398, 409 (2013) (citation omitted). “Imminence is
concededly a somewhat elastic concept.” Id. quoting Lujan v. Defenders of Wildlife, 504 U.S.
555, 564 n.2 (1992). The purpose of establishing the “imminence” of injury is “to ensure that the
alleged injury is not too speculative for Article III purposes.” Id. “An allegation of future injury”
– as in the present case – will suffice as long as “there is a ‘substantial risk’ that the harm will
occur.” Susan B. Anthony List v. Driehaus, 573 U.S. 149, 158 (2014) quoting Clapper, 568 U.S.
at 415 n.5.
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ARGUMENT
In most merger cases, the plaintiff relies heavily on indirect evidence of concentrated
market shares, which alone is sufficient to establish a plaintiff’s prima facie case of a violation of
Section 7. See St. Alphonsus Medical Center v. St. Luke’s Health System, Ltd., 778 F.3d 775, 785
(9th Cir. 2015) (“prima facie case can be established simply by showing high market share”).
This case, however, is remarkable for the strength of direct evidence of anticompetitive effects.
“[E]vidence of restricted output and supracompetitive prices [are] direct proof of the injury to
competition” proscribed by the antitrust laws. Rebel Oil Co. v. Atlantic Richfield Co., 51 F.3d
1421, 1434 (9th Cir. 1995); FTC v. Indiana Fed'n of Dentists, 476 U.S. 447, 460-61 (1986).
In sworn testimony, the defendants here have conceded that the JetBlue/Spirit merger
will raise prices and lower output in markets throughout the country that directly impact
Plaintiffs. Thus, contrary to Defendants’ contentions (Def. Mot. at 3), the Defendants’ own
statements prove their merger will result in antitrust injury. Ball Mem’l Hosp., 784 F.2d at 1334
(“‘antitrust injury’ … means injury from higher prices or lower output, the principal vices
and vowing to reduce capacity and increase prices to consumers.” Plaintiffs’ Opposition to
Defendants’ Purported Statement of Undisputed Material Fact (“PSUMF”) ¶ 201. Spirit has
admitted that “a JetBlue acquisition of Spirit will have lasting negative impacts on consumers,”
stating that the merger will “raise[] Spirit’s ticket prices,” and “remove ~50% of the ULCC
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JetBlue then verified Spirit’s initial concerns. When JetBlue calculated the impact the
merger would have on its revenues, it modelled for price increases and capacity reductions.
PSUMF ¶ 206 (testifying that model “will increase the fare, minimally shrink the market size,
we’ll then get our fair share of that new market size at that fare”).) Indeed, JetBlue plans to
increase fares on aircraft it acquires from Spirit by at least 24%. PSUMF ¶¶ 196, 197. JetBlue
states that 24% is a conservative estimate, and that fare increases may be as high as 40%.
PSUMF ¶ 197. Thus, there is direct evidence in the form of party admissions that the merger will
have anticompetitive effects. Section 7 only requires Plaintiffs to prove the merger “may” have
Second, Defendants do not dispute the merger will reduce capacity. As Spirit itself
predicts: “[S]pirit believes the DOJ – and a court – will be very concerned that a JetBlue-Spirit
combination will result in a higher-cost/higher fare airline and remove about half of the ULCC
Spirit planes have more seats than JetBlue planes. PSUMF ¶ 198. But, after the merger,
JetBlue will remove seats from every Spirit plane to match the configuration of JetBlue’s planes.
PSUMF ¶ 199. This reconfiguration will result in a reduction of 10-15% (or approximately 20-
28) of the seats on former Spirit planes. PSUMF ¶ 199. In its initial rejection of JetBlue’s
unsolicited hostile takeover bid, Spirit expressed grave concern about this reduction in capacity,
stating that “JetBlue is … vowing to reduce capacity and increase prices to consumers.” PSUMF
¶ 201. Even if the merger permits it to “increase utilization” of its aircraft, JetBlue admits that
alone will not offset the capacity lost as a result of removing seats from former Spirit aircraft.
PSUMF ¶¶ 207-212. JetBlue posits no other basis for offsetting the capacity lost as a result of
stripping 24 seats on average from every one of Spirit’s roughly 200 planes. PSUMF ¶ 212.
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These sworn statements directly undermine Defendants’ argument that the merger will
not result in “antitrust injury” to consumers, like Plaintiffs, that fly routes impacted by the
merger. If the merger is permitted to proceed, it will have direct anticompetitive effects on the
Defendants’ sworn testimony also undermines their Article III standing arguments.
According to Defendants themselves, the merger will increase prices and reduce capacity, so
those harms are “concrete” and “imminent.” There is not only “a substantial risk that the harm
will occur,” Susan B. Anthony, 573 U.S. at 158, Defendants have promised it. The injury is
“fairly traceable to the challenged action” because the increased prices and reduced capacity are
but-for effects of the merger. A “favorable ruling” that enjoins the merger will “redress” the
future harm by preventing the elimination of Spirit, the reduction of capacity, and the increase in
The merger’s anticompetitive harms will be felt in hundreds of routes across the nation,
threatening Plaintiffs with direct and imminent harm because they routinely fly routes impacted
by the merger.
Defendants’ argument that Plaintiffs lack standing suffers from two fundamental errors,
each independently warrants denying the motion. First, Defendants analyze Plaintiffs’ standing
in the wrong markets. (Def. Mot. at 6-13.) For their analysis, Defendants compare Plaintiffs’ past
flights to a list of 121 “harmed routes.” (Def. Mot. at 6-13.) But, expert discovery has not been
completed, and that list of 121 routes was “partial,” “not complete” and would change after
“further information” was provided by Plaintiffs’ “expert.” PSUMF ¶ 36. On July 28, 2023,
Plaintiffs served their expert report of Hal Singer, which identified the updated list of “Harmed
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Markets.” However, Defendants chose to ignore the Singer Report. Instead, they strategically
opted to attack a strawman list of “harmed markets” they knew to be incomplete. As a result, the
Second, Defendants’ argument hinges on the false assumption that the merger will only
harm Spirit fliers. They contend that Plaintiffs’ standing depends entirely on whether they have
flown Spirit in the past or will fly Spirit in the future. (Def. Mot. at 5-9.) Defendants’ factual
representations about Plaintiffs’ past and future Spirit flights is woefully inaccurate, as explained
below. But, more importantly, Defendants’ sworn testimony undermines their argument that the
merger will only harm Spirit fliers. JetBlue acknowledges that Spirit’s exit from a route results in
market-wide price increases of all other airlines serving that route by 30%. PSUMF ¶ 205.
Therefore, every passenger flying a harmed route will suffer antitrust injury – regardless of what
A. The Merger Will Harm Consumers In At Least 700 Markets Across The
Country
The proposed merger will lessen “actual competition” in at least 697 routes across the
nation and “potential competition” will be harmed in hundreds more. All twenty-four Plaintiffs
are threatened with concrete, impending antitrust injury as a result of their participation as
compete head-to-head (“Overlapping Routes”), the merger will harm actual competition by
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2. Spirit Only Routes. In an additional 283 routes serviced by Spirit in which neither
JetBlue nor any other ULCC provides service (PSUMF ¶ 36), the elimination of Spirit and its
replacement with JetBlue will result in former Spirit consumers paying at least 24% more in
fares (PSUMF ¶¶ 196-197), while passengers of every other airline in that market will pay 30%
more on average (PSUMF ¶ 205). Consumers in these markets will also suffer antitrust injury
from reduced capacity, fewer consumer choices, decreased quality of service, and the elimination
injury as a result of the elimination of Spirit as a “potential competitor.” PSUMF ¶ 36; see, e.g.,
United States v. Falstaff Brewing Corp., 410 U.S. 526, 557-62 (1973) (discussing “perceived
potential competition” and “actual potential competition” theories of liability). These routes
include (1) current Spirit routes that JetBlue does not serve but plans to serve absent the merger;
(2) current JetBlue routes that Spirit does not serve but plans to serve absent the merger; and (3)
routes that neither airline serves but that Spirit plans to serve absent the merger. PSUMF ¶ 36.
Because the two carriers operate from 159 airports across the nation, the potential range of routes
affected under the potential harm to competition spans the entirety of the nation. PSUMF ¶ 36.
At the very least, absent the merger Spirit plans to acquire 171 new aircraft and expand into 30
new airports over the next 5 years, leading to hundreds of new future routes. PSUMF ¶ 36.
All twenty-four Plaintiffs are consumers of airline travel in these harmed markets.1
Plaintiffs have flown and will continue to fly on over 160 of the harmed routes.2 Of these,
Plaintiffs have concrete future plans to fly in over 70 of the impacted routes, either because they
1
PSUMF ¶¶ 39, 46, 53, 60, 68, 74, 80, 87, 93, 99, 105, 112, 119, 126, 132, 139, 146, 152, 158, 164, 172,
178, 183, 190.
2
Id.
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fly these routes regularly (e.g. to visit family) or because they have planned business trips or
vacations.3
For example, Plaintiff Leonard Marazzo travels for work on the Richmond to Orlando
route. PSUMF ¶ 132. Not only is the Richmond to Orlando route a harmed route, if the merger
proceeds, JetBlue will have a complete and unchallenged monopoly on that route, rendering the
merger facially unlawful and essentially unrebuttable under the law. PSUMF ¶ 36 (Alioto Decl.,
Ex. 73 (Singer Rep.) Table A3.1-A3.7). Mr. Marazzo also regularly flies from New York to Las
Vegas. PSUMF ¶ 132. The merger will cause the market concentration index (known as the
“HHI”) on that route to increase over 500 points to 2,800 – well above the 2,500 post-merger and
200-point increase thresholds that establish the merger’s presumptive illegality under the law.
PSUMF ¶ 36 (Alioto Decl., Ex. 73 (Singer Rep.) Table A3.1-A3.7); see, e.g., St. Alphonsus, 778
F.3d at 786 (“[m]ergers that increase the HHI more than 200 points and result in highly
concentrated markets [i.e. 2,500 HHI or higher]” are presumptively anticompetitive). In another
example, Plaintiff Lisa McCarthy lives in Fort Myers and regularly visits family in Hartford and
Boston. PSUMF ¶ 139. If the merger goes forward, the HHI in the Fort Myers-Hartford market
will increase an astronomical 3,335 points to a post-merger concentration level of 8,910. PSUMF
¶ 36 (Alioto Decl., Ex. 73 (Singer Rep.) Table A3.1-A3.7). The HHI in the Fort Myers-Boston
route that Ms. McCarthy flies will increase 1,464 points to 6,184 post-merger. PSUMF ¶ 36
3
PSUMF ¶¶ 39 (regularly flies routes to visit family), 68 (planned cruise), 74 (vacations regularly), 80
(regularly visits sister, nephew), 87 (flies routes every year; planned cruise), 93 (booked flights; planned
cruise), 99 (flies route four times a year; lives in Boston, works and owns property in Florida), 105 (flies
route frequently; visits son), 112 (visits friends), 119 (flies frequently; visits friends; planned wedding),
126 (regular golf trips), 132 (visits friends; regular work trips), 139 (visits friends), 146 (travels route
frequently, owns timeshare at destination; visits family), 152 (planned cruise; work trips), 158 (planned
cruise; travels route three times/year to visit family), 164 (travels route frequently), 178 (travels for work
and annual meetings; visits friends/vacations regularly), 183 (frequently vacations and frequent family
visits), 190 (visits family regularly).
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(Alioto Decl., Ex. 73 (Singer Rep.) Table A3.1-A3.7). Another example is Plaintiff Katherine
Arcell, who frequently flies from her home in New Orleans to Newark to visit family in New
Jersey. PSUMF ¶ 39. The merger will increase the concentration index in the New Orleans-
Newark market by almost 600 points to 2,800 – well in excess of the threshold for presumptive
Plainly, Defendants’ conclusion that Plaintiffs have no “concrete, imminent” plans to fly
in the future is wrong. But, to shoehorn that argument anyway, Defendants resort to
Gabriel Garavanian’s testimony. Mr. Garavanian testified that he travels from his residence near
Boston to Fort Myers, Florida (a harmed route) four times a year. PSUMF ¶ 97-99. He travels to
look after condominiums he bought in Florida, and he visits family there. Id. In fact, Mr.
Garavanian travels so frequently that he lives in Boston but works part-time in Myrtle Beach.
PSUMF ¶ 99. When he travels from Boston to Florida, he flies Spirit Airlines, and testified, “I
In the face of the undisputable regularity of Mr. Garavanian’s travel on Spirit along the
Boston-Fort Myers route, Defendants incredibly argue he has no “concrete, imminent plans to fly
Spirit in the future.” (Def. Mot. at 6.) That absurd conclusion is propped up by Defendants’ razor
thin definition of “imminent” that has no support from (or citation to) the law. They claim no
plaintiff’s travel is “imminent” unless that plaintiff has already purchased the ticket, even,
apparently, if the plaintiff commutes on the route every three months. (Def. Mot. at 7.)
Defendants’ definition of convenience is utterly unreasonable. Applying it, only a sliver of actual
air travelers could possibly have standing, since airline tickets are rarely booked more than a few
weeks in advance. The merger is not set to close for another 6 months. The law does not require
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plaintiffs to show they purchased tickets more than 6 months in advance to show standing.
concept.” Clapper, 568 U.S. at 409 citing Lujan, 504 U.S. at 564 n.2. The purpose of
establishing the “imminence” of injury is merely “to ensure that the alleged injury is not too
speculative for Article III purposes.” Id. Plaintiffs regularly travel the harmed routes. They have
so testified under oath. Their travel is not speculative. They will continue to regularly visit
family members, attend annual work meetings, and go on vacation – along routes that will be
impacted by Defendants’ merger. Defendants’ suggestions to the contrary are entirely baseless.
B. The Merger Will Injure Plaintiffs On The Harmed Routes, Regardless Of What
Airline They Fly
Defendants also fundamentally err by relying on the false premise that the merger will
only impact Spirit passengers. The lion’s share of their standing argument is wasted on
discussing whether and when the various Plaintiffs flew or will fly Spirit. (Def. Mot. at 5-9.)
But, based on JetBlue’s own analysis of “real world Spirit exits from markets,” Defendants
concede that every time Spirit exits a route, “route fares increase[] by 30 percent thereafter.”
PSUMF ¶205. That is, passengers of any airline that travel routes serviced by Spirit will be
of service quality, and the lessening of consumer choice. PSUMF ¶ 36 (Alioto Dec., Ex. 73
Moreover, Plaintiffs will also suffer injury from the loss of potential competition in
routes that Spirit has not yet entered but intends to enter in the near future. Specifically, Spirit
intends to purchase 171 new aircraft and enter 6 new airports every year for the next 5 years.
PSUMF ¶ 36. The loss of Spirit as a potential competitor in the hundreds of routes Spirit will
enter absent the merger will harm consumers, including Plaintiffs, who will be forced to forego
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the benefits of Spirit’s competition. PSUMF ¶ 36 (Alioto Dec. Ex. 73 (Singer Rep.) at pp. 52-58,
¶¶ 103-116). Plaintiffs Faust, Talewski, and Ward each live near airports or travel to airports that
While not necessary to establish their standing, the record is nonetheless replete with
Plaintiffs’ plans to fly Spirit in the near future, and Defendants’ assertions to the contrary are
wrong. Eighteen of the plaintiffs have plans to fly Spirit on specific routes in the near future.5
Seven Plaintiffs currently have flights booked on Spirit or have definitive plans to book Spirit
flights in the next month or so.6 The remaining six plaintiffs either have intentions to fly Spirit or
4
PSUMF ¶¶ 74 (Faust; Spirit plans to enter Cincinnati (airport code CVG) in 2026); 178 (Talewski; Spirit
plans to enter Rhode Island (airport code PVD) in 2027); 183 (Ward; Spirit plans to enter Sarasota,
Florida (airport code SRQ) in 2028).
5
PSUMF ¶¶ 38. (Arcell; will likely fly Spirit in harmed routes); 52 (Brown; plans to fly Spirit to Orlando
next year to visit sister); 59 (D’Augusta; will fly Spirit to New York within next six months for wedding,
to nephew’s graduation in June 2024, and to San Diego in next few months); 67 (Davis; flight booked on
Spirit from Dallas to Las Vegas on September 6, 2023; will fly Spirit to Seattle for upcoming cruise to
Alaska); 73 (Faust; plans to fly Spirit to Los Angeles next month; will fly Spirit when it expands to
CVG); 86 (Freeland; will fly Spirit to Mexico to visit daughter in near future and has researched pricing
and availability); 92 (Fry; Spirit flight booked October 5, 2023 from Phoenix to Seattle); 98 (G.
Garavanian; regularly flies Spirit from Boston to Myrtle Beach and will fly Spirit to Myrtle Beach in
December 2023 and March 2024); 104 (H. Garavanian; is flying Spirit from Boston to Myrtle Beach in
Fall 2023 to visit son); 111 (Gardner; is flying Denver to Miami for a cruise in February 2024 and will
book Spirit if it is lowest price as trip approaches); 131 (Marazzo; regularly purchases Spirit flights for his
daughter; booked Spirit on November 4, 2023 for trip from Reno to Las Vegas; booked Spirit on
December 13, 2023 from Orlando to Richmond); 138 (McCarthy; in addition to considering Spirit for a
number of upcoming trips, intends to fly Spirit from Fort Myers to Las Vegas for annual conference); 145
(Nieboer; will book Spirit roundtrip flight from Detroit to Fort Lauderdale for February 17, 2024 to
March 2, 2024; Spirit has “always been the most economical one, so that is what I would run with”); 151
(Pulfer; will fly Spirit from Denver to Columbus in summer 2024); 157 (Rubinsohn; has booked Spirit
flight in December 2023 from Philadelphia to Detroit to visit family); 163 (Russell; plans on flying Spirit
domestically in the future, travels frequently from Dallas to Fort Lauderdale, Miami, and Orlando); 171
(Stensrud; intends to fly Spirit when retires); 177 (Talewski; plans to fly Spirit from West Palm Beach or
Fort Lauderdale to Atlantic City with friends in October 2023).
6
PSUMF ¶¶ 67 (Davis; flight booked on Spirit from Dallas to Las Vegas on September 6, 2023; will fly
Spirit to Seattle for upcoming cruise to Alaska); 92 (Fry; Spirit flight booked October 5, 2023 from
Phoenix to Seattle); 98 (G. Garavanian; regularly flies Spirit from Boston to Myrtle Beach and will fly
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Moreover, many of the Plaintiffs run active travel agencies that will lose customers and
sales as a result of the merger’s effects, as more and more people turn away from air travel as a
result of higher prices and reductions in service.7 Defendants fail to address this line of injury at
all, making unremarkable points that the merger will not impact the amount of “flat fees” or
commissions Plaintiffs receive.8 But, Defendants disregard the erosion of sales that will result as
“the merger drive[s] [Plaintiffs’] clients to choose alternative modes of transportation and
eliminate [Plaintiffs’]” travel agency services as “flight options disappear.” PSMUF ¶ 77 (Faust).
Defendants argue there is no genuine issue of material fact that Plaintiffs are not
threatened with “concrete” “imminent” “antitrust harm” from the merger. The record readily
refutes these claims. In fact, there is no genuine dispute that the merger will injure competition
with anticompetitive effects, facts established through Defendants’ own admissions. Plaintiffs
need only prove they are “threatened” with probable harm. But here, because they routinely fly
Spirit to Myrtle Beach in December 2023 and March 2024); 104 (H. Garavanian; is flying Spirit from
Boston to Myrtle Beach in Fall 2023 to visit son); 131 (Marazzo; regularly purchases Spirit flights for his
daughter; booked Spirit on November 4, 2023 for trip from Reno to Las Vegas; booked Spirit on
December 13, 2023 from Orlando to Richmond); 145 (Nieboer; will book Spirit roundtrip flight from
Detroit to Fort Lauderdale for February 17, 2024 to March 2, 2024; Spirit has “always been the most
economical one, so that is what I would run with”); 157 (Rubinsohn; has booked Spirit flight in
December 2023 from Philadelphia to Detroit to visit family).
7
Plaintiffs have not “waived” this theory of standing. Faust 77 (merger will drive clients to choose
alternative modes of transportation and erode sales); G. Garavanian 102 (based on prior experience with
airline mergers, increased prices from merger will result in customers foregoing travel and his service);
Gardner 115 (ability to service clients will be hampered by loss of choices, degradation of service); Pulfer
153 (fewer customers will book trips as airline costs increase); Rubinsohn 161 (number of people that
book airfare will go down if prices for air tickets go up); Talewski 180 (merger will impact his business
since customers will travel less frequently due to higher prices, reduced flight schedules, worse customer
service, and devalued loyalty programs); Ward 186 (merger will have “negative effects” on her travel
agency business as a result of fewer flight options)
8
Plaintiffs dispute Defendants’ contention that commissions necessarily increase as fares go up. PSUMF
¶ 48 (Brito) (explaining that commissions do not necessarily go up just because ticket prices increase).
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routes where competition will be drastically impacted, Plaintiffs are not only threatened with
Section 7, “[r]easonable apprehension of threatened injury will suffice.” Am. Passage Media
Corp. v. Cass Commc'ns, Inc., 750 F.2d 1470, 1473 (9th Cir. 1985) (citing 15 U.S.C. § 26 and
Zenith, 395 U.S. at 130). Moreover, a “lessening of competition ‘is precisely the kind of
irreparable injury that injunctive relief under section 16 of the Clayton Act was intended to
prevent’.” California v. Am. Stores Co., 492 U.S. 1301, 1304 (1989) (O’Connor, J., Circuit
Justice); Am. Passage Media, 750 F.3d at 1473 (“A sufficient showing of injury to competition
There is no genuine dispute in this case that the effect of the merger “may be substantially
to lessen competition,” 15 U.S.C. § 18, since the direct evidence shows the merger will have
those effects. Defendants concede they will use the elimination of Spirit to increase prices and
reduce output, “the principal vices proscribed by the antitrust laws,” Ball Mem’l Hosp., 784 F.2d
at 1334 (citing Brunswick, 429 U.S. 477). See supra, Sec. I. This “lessening of competition,”
standing alone, “is precisely the kind of irreparable injury” Section 16 was intended to enjoin.
Defendants also argue Plaintiffs will suffer no injuries that cannot be remedied with
money damages. (Def. Mem. at 15.) Their argument again requires ignoring the record. Each of
the plaintiffs testified to being threatened with myriad harms that cannot be remedied with
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money damages.9 The elimination of Spirit will result in “fewer choices for consumers …
precisely the type of harm that we allow plaintiffs to vindicate through the antitrust laws.”
Palmyra Park Hosp. Inc. v. Phoebe Putney Mem’l Hosp., 604 F.3d 1291, 1303 (11th Cir. 2010)
(emphasis added). Every Plaintiff testified the merger will harm them by reducing their choices
as consumers.10 As Plaintiff D’Augusta put it, “when you take away a viable competitor … you
would take away my choice” because “[t]his merger will create fewer choices as flights and routes
are consolidated.” (SMF ¶ 64.) Plaintiff Gabriel Garavanian lived that experience. He regularly
flies Spirit from Boston to Myrtle Beach. SMF ¶ 99. However, in January 2023, he was forced to
drive back to Boston because Spirit was not operating and the cost of other flights in the market
9
SMF ¶ 42 (Arcell), ¶ 49 (Brito), ¶ 57 (Brown), ¶ 64 (D’Augusta), ¶ 71 (Davis), ¶ 77 (Faust), ¶ 83
(Fjord), ¶ 90 (Freeland), ¶ 96 (Fry), ¶ 102 (G. Garavanian), ¶ 108 (H. Garavanian), ¶ 115 (Gardner), ¶ 122
(Jolly), ¶ 129 (Malaney), ¶ 135 (Marazzo), ¶ 142 (McCarthy), ¶ 149 (Nieboer), ¶ 155 (Pulfer), ¶ 161
(Rubinsohn), ¶ 167 (Russell), ¶ 176 (Stensrud), ¶ 181 (Talewsky), ¶ 187 (Ward), ¶ 194 (Whalen).
10
SMF ¶ 42 (Arcell) (“[I] would like to have the ability – the choice to choose”); SMP ¶ 49 (Brito)
(merger will lessen choice for air travel); SMF ¶ 57 (Brown) (“based on past experience” merger will
result in “fewer choices of carriers”); SMF ¶ 64 (D’Augusta) (“This merger will create fewer choices as
flights and routes are consolidated and will contribute to reduced flexibility to manage longer or forced
layovers or inconvenient travel schedules”); SMF ¶ 71 (Davis) (merger will reduce consumer choice);
SMF ¶ 77 (Faust) (“I should be concerned about any kind of merger as a travel agent and consumer
because it’s just one more nail in the coffin on the options that American customers have for their flight
travel”); SMF ¶ 83 (Fjord) (“alternatives for myself, family, friends, and clients travel will be
eliminated”); ¶ 90 (Freeland) (merger would “reduce his options” for flying), ¶ 96 (Fry) (merger “will
reduce the number of airline choices,” as prior “mergers have created very few options out of Tucson”), ¶
102 (G. Garavanian) (“JetBlue will cancel routes completely … so a route that Spirit had previously
serviced will be completely discontinued”), ¶ 108 (H. Garavanian) (“I believe we will have less options
for flight routes, especially Boston to Ft. Lauderdale. I, in particular, will have less options to fly into and
out of Tampa and Manchester”), ¶ 115 (Gardner) (merger will result in “less service”), ¶ 122 (Jolly) (“I
do not want to see another option leave from the Dallas airport”), ¶ 129 (Malaney) (merger will result in
“fewer flights” and “less consumer choice”), ¶ 135 (Marazzo) (harms experienced from the merger will
include “fewer travel options,” “less choice in flights”), ¶ 142 (McCarthy) (merger will result in “fewer
available seats”, ¶ 149 (Nieboer) (“mergers … only help the companies, not the public” and will result in
“less opportunity to … fly certain destinations”) , ¶ 155 (Pulfer) (“Flights and seating availability will be
lower”), ¶ 161 (Rubinsohn), ¶ 167 (Russell) (merger will “eliminate consumers choice”), ¶ 176 (Stensrud)
(merger will result in “less availability of flights”), ¶ 181 (Talewsky) (merger will result in “less choice
for flight options” and “reduced flight schedules”), ¶ 187 (Ward) (merger will “limit the choices” and
result in “fewer flights”), ¶ 194 (Whalen) (merger will impact her personally because it will result in “less
choices” and “cutbacks in maybe some flights and destinations”).
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had skyrocketed. SMF ¶ 99. Mr. Garavanian testified he wanted to fly home for Christmas but
with Spirit out of the market, prices had gone from $90/$180 per roundtrip to $750 per
roundtrip. SMF ¶ 99. With Spirit gone, Mr. Garavanian could not afford to travel by air and was
forced to drive 14 hours home to Boston. From atop their ivory towers, Defendants argue they
can simply pay money damages to address harms like those experienced by everyday fliers like
Mr. Garavanian once Spirit is eliminated from the market. But, Defendants are deaf to the fact
that eliminating Spirit will prevent some people, like Mr. Garavanian, from flying at all. As Mr.
Garavanian testified, if Spirit is eliminated, people like him “aren’t going to be able to afford to
go to some of these destinations or [make] any of these trips” at all. SMF ¶ 99. In fact, JetBlue’s
own estimates suggest the elimination of Spirit will result in large percentages of Spirit’s current
customer base, like Mr. Garavanian, foregoing flights altogether. PSUMF ¶ 213 (JetBlue
estimates Spirit’s entry into markets stimulates increases of 18% to 36% in new passengers).
Plaintiffs also testified that the proposed transaction will reduce service quality.11
Plaintiffs base these beliefs on their decades in the industry as travel agents, having lived through
and experienced the effects of half a dozen airline mergers. PSUMF ¶ 102 (Alioto Dec. Ex. 10
(G. Garavanian Dep. at 110-112) (in 34 years as travel agent, saw higher prices and steep
reductions in service after previous mergers). Reductions in service will include “longer and
11
SMF ¶ 49 (Brito) (based on his personal experience with previous airline mergers, the “trend that’s
taken place” is there will be “lower service”), ¶ 57 (Brown) (“based on prior experience,” airline mergers
have resulted in “reduced routing,” “reduced number of seats” and “more crowded flights”), ¶ 64
(D’Augusta) (merger will “contribute to reduced flexibility to manage longer or forced layovers or
inconvenient travel schedules”), ¶ 71 (Davis) (“service may be cut in Dallas for Spirit”), ¶ 77 (Faust), ¶ 90
(Freeland) (“poorer service” based on his experience observing impacts of prior airline mergers), ¶ 96
(Fry) (based on experience of prior mergers, her livelihood will be affected in a very direct way through,
among other things, cancellation of flights), ¶ 102 (G. Garavanian) (merger will result in trip
interruptions, baggage handling problems, computer system integration problems, cancellations, double
bookings, and internal conflict that all negatively impact the consumer experience), ¶ 108 (H.
Garavanian), ¶ 115 (Gardner), ¶ 122 (Jolly), ¶ 129 (Malaney), ¶ 135 (Marazzo), ¶ 167 (Russell), ¶ 181
(Talewsky) (merger will result in poor service, “especially customer service” which “[h]istorically … has
happened every time there is a merger”), ¶ 187 (Ward).
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forced layovers” and “inconvenient travel schedules.” PSUMF ¶ 64. The merger is likely to
result in “crowded flights,” “double bookings” PSUMF ¶ 102, “flight cancellations,” “difficulties
in transferring between flights,” “lost or delayed baggage,” and various other service disruptions
related to “[m]erging different airline systems.” SUMP ¶ 64. These threatened irreparable harms
facing Plaintiffs are not speculative; they are based on Plaintiffs’ personal observations of the
deterioration of quality that has accompanied previous airline mergers. An erosion of “customer
service” has “historically … happened every time there is a merger.” PSUMF ¶ 181; see also e.g.
PSUMF ¶ 49 (likelihood of harms based on “trend that’s taken place” with concentration in
anticompetitive airline mergers. The logic of these arguments is so poor that it appears they are
offered solely as a vehicle to attack Plaintiffs personally. But, not only are Defendants’ cynical
ad hominem attacks inappropriate, Plaintiffs’ previous experience with airline mergers at best
Defendants deride Plaintiffs for having challenged six airline mergers in the past.
PSUMF ¶ 6. The argument is deeply hypocritical. In a pre-merger filing with the government,
Defendants concede that the airline industry “has been allowed to drastically consolidate” since
2005, “leaving just four dominant carriers (American, Delta, United and Southwest, collectively
the ‘Big Four’) that currently account for approximately 80% of capacity.” PSUMF ¶ 214
(JetBlue Response to DOJ “Second Request” at 75). They seize on this to make the backward
argument that yet one more merger will somehow fix the industry’s overconcentration. (Def.
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Mot. at 6.) But, Defendants are right to lament the “drastic consolidation” of the airline industry,
even if their lament is feigned. The government also recognizes the historic unlawful trend
toward consolidation in the airline industry. United States v. JetBlue and Spirit, Case No. 23-cv-
10511 (Mar. 7, 2023) (Compl. ¶ 8) (alleging that JetBlue’s acquisition of Spirit would be
“simply the latest step in a trend toward concentration in the industry”). But, the antitrust
regulators have not always had that view. In the eleven years from 2005 to 2016, seven airline
mergers were permitted to close. Under previous administrations, the government allowed all of
them to proceed, sometimes requiring structural remedies that ultimately made little or no
difference. But while everyone now agrees the airline industry is “drastically consolidated,”
Plaintiffs were the only ones who did anything to stop it while it was occurring. Plaintiffs
challenged six of these mergers, even forming a group (Passengers Against Mergers), the central
tenet of which was to protect and maintain competition in the airline industry. Plaintiffs have
worked in the airline industry (mostly as travel agents) for decades. They have personally
experienced and suffered the impact prior airline mergers have had on competition, price, service
quality, flight cancellations, flight availability, and other harms – and that experience informs the
likelihood those harms will be repeated if the present merger is allowed to proceed. See supra,
notes 10, 11. Defendants deride Plaintiffs for challenging these mergers, yet in the same breath
(when beneficial to them), Defendants righteously declare the airline industry “drastically
consolidate[d].” To the extent their litigation history is relevant at all, it supports Plaintiffs’
Defendants also make the logically flawed argument that by founding Passengers Against
Mergers, the Plaintiffs “acknowledge that money damages would remedy alleged harms from
‘all’ airline mergers.” (Def. Mot. at 15.) Plaintiffs were well within their rights to create a group
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aimed at protecting competition in the airline industry. That Plaintiffs did so does not amount to
an “acknowledgment” of anything other than a disdain for the destruction of competition that
Defendants only now acknowledge has plagued the airline industry. The agreement Plaintiffs
signed divided among themselves “any award” obtained from the Court, which includes court-
awarded fees for winning injunctions of unlawful mergers, not just settling cases. Plaintiffs’
to whether the harms Defendants consciously intend to inflict on Plaintiffs should be prevented.
Equally infirm is the logic Defendants apply to Plaintiffs’ previous settlement of a merger
lawsuit. Defendants nonsensically argue Plaintiffs’ settlement in a case ten years ago is somehow
tantamount to an admission that money damages are an adequate remedy in this merger case.
Without relying on evidence or law, Defendants only muster this textbook example of syllogistic
fallacy: “[i]f it was true then, it is true now.” (Def. Mot. at 16.) Never mind the facts are
different, as yet again Defendants ignore the evidence. But, setting aside their flawed logic, the
last court to consider Defendants’ recycled argument summarily rejected it, reasoning, “the
policy of favoring settlement counsels against using the terms of those agreements as evidence in
another case.” Malaney v. UAL Corp., No. 3:10-cv-02858-RS, 2010 WL 3790296 at *14 n.20
(N.D. Cal. Sept. 27, 2010). The evidence here reflects the intangible antitrust injuries the present
merger threatens to inflict on Plaintiffs – e.g., reductions in service, cancelled flights, fewer
flight options, the elimination of innovation, and so on. See supra Sec. III. Defendants cite no
evidence or law, much less establish there is no genuine issue of material fact, to support the
conclusion that the harms threatening Plaintiffs can be adequately remedied at law.
Finally, Defendants rely on more flawed logic to argue Plaintiffs’ expert’s quantification
of price-related damages equates to an admission that money damages are adequate for all the
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merger’s harms. The expert’s report quantifies losses stemming from the higher prices Plaintiffs
will be forced to pay if the illicit merger closes. But, the expert report did not address – much
less quantify – the intangible harms Plaintiffs know through experience will follow from the
Defendants claim Plaintiffs cannot meet their “threshold burden” of showing how their action
would not be “mooted” by resolution of the government’s case at trial. (Def. Mot. at 17.) This
purported “threshold burden” is cut from whole cloth. The Supreme Court has held otherwise. In
United States v. Borden Co., the Court addressed whether an injunctive action brought by the
government was rendered “useless” by a prior decree in a private action enjoining the same
challenged activity. 347 U.S. 514, 515 (1954). The Court held it was not, and that the action
should proceed, since “[t]hese private and public actions were designed to be cumulative, not
mutually exclusive. … They may proceed simultaneously or in disregard of each other.” Id.
Accordingly, resolution of the government’s case cannot as a matter of law prevent Plaintiffs’
CONCLUSION
ALIOTO LEGAL
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CERTIFICATE OF SERVICE
I certify that this document was filed through the ECF system in redacted form on August
22, 2023 and will be sent electronically to the registered participants as identified on the Notice
of Electronic Filing.
I further certify that this document, in unredacted form, was served on the defendants on
22