The U.S. Transportation Department refused JetBlue and Spirit’s exemption request to operate under shared ownership on Friday due to the Justice Department’s antitrust action launched this month.

Last July, JetBlue announced its $3.8 billion Spirit purchase. They then obtained an exemption from the Transportation Department to operate under common ownership before requesting a transfer application to consolidate and operate foreign routes under one certificate.

On March 7, the Justice Department argued that the merger would diminish competition, raise ticket costs, restrict passenger capacity, and limit consumer choice.

The Transportation Department rejected the exemption request due to President Joe Biden’s executive order to “coordinate competition efforts, DOJ’s (Justice Department) conclusion that the proposed merger would have anti-competitive effects, and the pendency of the federal lawsuit challenging the legality of the transaction.”

JetBlue stated a court “will recognize the pro-competitive aspects of this merger, which will establish a nationwide low-fare alternative to the dominating Big Four airlines.”

“The Transportation Department ruling on the exception does not affect that belief or our confidence that we will conclude the deal, within our projected schedule, following resolution of the court case,” JetBlue said.

Given the litigation, the Transportation Department ruled the exemption request premature. However, the lawsuit’s federal court scheduled an October 16 trial this week.

The Justice Department, Massachusetts, New York, and the District of Columbia found the arrangement “presumptively unconstitutional” and that JetBlue planned to eliminate 10% to 15% of Spirit airline seats.

JetBlue CEO Robin Hayes denies the deal would restrict capacity.

“We’ll bring capacity back,” Hayes said in an interview last month, deploying larger planes on current routes and flying more often.

Hayes said, “Consumers benefit.” “It’ll disrupt the aviation sector and should be authorized quickly.”

The Justice Department filed a separate antitrust complaint in Boston to require American Airlines (AAL.O) and JetBlue to cease their U.S. Northeast alliance because it would raise consumer costs.