Former Transportation Secretary Pete Buttigieg pushed back Monday against Transportation Secretary Sean Duffy's claim that the Joe Biden administration helped cause Spirit Aviation Holdings Inc.’s (OTC:FLYYQ) collapse by backing the successful legal challenge to JetBlue's proposed takeover.
Duffy Says Buttigieg Made Wrong Call
Duffy said Monday on Fox News's "Fox & Friends" that Buttigieg "made the wrong call" by supporting the Biden administration's opposition to JetBlue Airways Corp.’s (NASDAQ:JBLU) planned $3.8 billion acquisition of Spirit. He argued that if Buttigieg had taken a closer look at the two carriers, he would have concluded that the merger would have been better for customers.
JetBlue abandoned the deal in 2024 after a federal judge in Massachusetts blocked it on antitrust grounds. The Justice Department and several state attorneys general sued in 2023 under Section 7 of the Clayton Act. When JetBlue dropped the bid, then-Attorney General Merrick Garland said the merger "would have caused tens of millions of travelers to face higher fares and fewer choices."
Buttigieg Blames Trump War Fuel Spike
Buttigieg responded to Duffy's comments on X, writing, "You can't lower gas prices by blurting out the names of a few Democrats." He said the administration should stop policies that cause "economic pain" and argued Spirit's collapse happened on Trump's watch because the war with Iran doubled jet fuel prices.
Spirit, which filed for Chapter 11 bankruptcy in 2024 and again in 2025, cited rising fuel costs as a reason it had no path to continue operating in court papers filed on Monday, according to NBC News. The low-cost airline ceased operations on Saturday and became the airline industry's first casualty tied to the Iran war after failing to secure creditor backing for a proposed $500 million U.S. government bailout.
Tanden Says Democrats Should Review Merger Fight
Jet fuel prices have surged as the U.S.-Israeli war with Iran disrupted shipping through the Strait of Hormuz, adding pressure to Spirit's already fragile balance sheet. Airlines for America, a consortium of U.S.-based flight operators, listed jet fuel at $4.26 a gallon on Monday.
Neera Tanden, a former senior adviser to President Joe Biden, said Democrats should still review whether blocking the merger was the right call given Spirit's collapse and job losses. She later added that "Trump's war was the Spirit Airlines killer," while saying policymakers should assess all evidence.
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