
After Spirit Airlines announced it was shutting down early Saturday, critics pointed out that Democratic Massachusetts Sen. Elizabeth Warren persuaded the Biden administration to stop a planned merger that might have saved the ultra low-cost carrier.
The 34-year-old airline ā which had a workforce of more than 17,000 employees and primarily served lower-income customers ā ceased operations after a proposed half-billion dollar bailout from the government fell through, multipleoutlets reported. However, months before the airline first filed for bankruptcy in 2024, fellow low-cost carrierĀ JetBlue Airways called off its intended $3.8 billion acquisition of Spirit following years of opposition by then-President Joe Biden, Department of Transportation (DOT) Secretary Pete Buttigieg and Warren, who was the planned mergerās biggest opponent in Congress.
Between the time the merger was first announced in July 2022 and its termination in March 2024, Warren, a former presidential candidate and leading figure in the progressive movement, forcefully warned against the move and lobbied the Biden administration to stop it.
In a June 2023 letter to Buttigieg, she and eight left-wing House Democrats ā including New York Rep. Alexandria Ocasio-Cortez ā wrote, āWe urge DOT not to be pressured by misleading comments generated through JetBlueās Astroturf campaign, and to continue its careful scrutiny of the JetBlue-Spirit deal.ā
Republican Ohio Sen. Bernie Moreno blasted his Democratic upper chamber colleague in a Saturday morning X post, hours after the more than three-decade-old airline announced it was ceasing operations.
āThe 14,000 employees at Spirit whoāve lost their job loss, the travelers who will now pay higher fares, and the shareholders and debt holders who have been wiped out can thank Elizabeth Warren,ā Moreno wrote. He quoted Warrenās March 2024 X post where she appeared to take a victory lap for her advocacy in stopping the merger.
āI think itās important that we always look with a keen eye when airlines want to merge,ā Duffy continued. āIf the markets are saying there needs to be a merger because thereās health issues with one of the airlines, or more than one airline, we have to take a look at it and make sure we make the right choices. And in this situation, history has judged the denial of the merger between JetBlue and Spirit through the Biden administration with I think a view that it was a massive mistake.ā
Also on the morning of Spirtās shutdown, economist and investor Peter Schiff replied to Warrenās X post from just two days earlier lamenting that the āBig Four airlines (American, Delta, Southwest, United) control 75% of the U.S. marketā adding āFewer choices = higher prices for you.ā
āSo why did you block the Jet Blue, Spirit Airlines merger?ā Schiff asked. āThe combined company would have been better competition than Jet Blue alone. now that Spirit is gone thanks to your intervention.ā
Shortly after being singled out by critics, Warren weighed on Spiritās shuttering, writing on X that skyrocketing oil prices due to the Trump administrationās war in Iran and the effective closure of the Strait of Hormuz were āthe nail in the coffin for twice-bankruptedā airline.
āFWIW , 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,ā the senator wrote, referring to U.S. District Judge William G. Youngās January 2024 ruling.
Young ruled at the time that the proposed ruling was in violation of the more than century-old Woodrow Wilson-era Clayton Antitrust Act of 1914.
Furthermore, GasBuddy analyst Patrick De Haan wrote in a Saturday morning X post that the wartime surge in fuel prices had ultimately doomed Spirit, who he said had grossly underestimated oil costs.
āSpiritās restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to about $4.51 a gallon by the end of April,ā De Haan wrote in his post.
When asked for comment Warrenās office referred the Daily Caller News Foundation to both her and De Haanās X posts.
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