1.17.2024

JetBlue-Spirit Deal Foiled

A federal judge yesterday blocked JetBlue Airways from acquiring Spirit Airlines, ruling the $3.8B deal would have driven up fares for price-conscious travelers and hurt competition. Spirit's shares closed down 47% yesterday; JetBlue shares closed up 4.9%. 

At trial, the US Justice Department had argued the merger would have limited flight options as well as the "Spirit effect," in which industrywide price reductions of 17% on average are triggered when Spirit reduces fares on specific routes. A JetBlue-Spirit merger would have created the fifth-largest airline in the US, giving the combined entity control of roughly 10% of the domestic market (see data). The four largest carriers—United Airlines, American Airlines, Delta Air Lines, and Southwest Airlines—control two-thirds of the US market. JetBlue and Spirit said they disagree with the ruling and are assessing next steps.

The DOJ previously forced JetBlue to dissolve a Northeast partnership with American Airlines that had allowed the two carriers to coordinate schedules and share revenue. 

Cloned Rhesus Monkey

A genetically cloned rhesus monkey has survived into adulthood for the first time, according to new research published yesterday. The healthy 3-year-old named Retro is just the third instance of a cloned primate to reach maturity after two 6-year-old long-tailed macaques born in 2018. 

The achievement marks a rare success in a complex procedure—known as somatic cell nuclear transfer—which sees the vast majority of implanted primate embryos fail to reach birth. Researchers tweaked the process—the same used to produce Dolly the Sheep in 1996, the first cloned adult mammal—to prevent developmental defects associated with the cloned embryo's placenta. Some medical researchers believe cloned primates could prove more effective than commonly used mice in lab settings, while animal advocates argue the procedures cause undue stress to intelligent primates.

Thousands of animals—including carp, horses, wolves, and more—are cloned each year for agriculture and research, as well as for the preservation of personal pets.

Gilgo Beach Suspect Charged

Long Island murder suspect Rex Heuermann was charged in connection with a fourth murder yesterday for the 2007 killing of Maureen Brainard-Barnes. Prosecutors charged Heuermann with second-degree murder, citing DNA evidence linking the 60-year-old former Manhattan architect to the crime scene. He was previously charged with murder in July for the deaths of three other victims.

Brainard-Barnes was one of four women found buried in the same 500-foot area of Gilgo Beach in December 2010. In total, 11 bodies—nine women, one man, and a toddler—have been found around Gilgo Beach in Long Island between 2010 and 2011. Heuermann was allegedly linked to the four murders by DNA evidence found at the scene, as well as the use of burner phones, which were used to arrange meetings with the victims. Prosecutors have not directly connected Heuermann to the other murders.

Heuermann pleaded not guilty and is due back in court Feb. 6. Read more about the murders here.

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