Atlas Air Worldwide drops amid report that DOT may try to block Spirit/JetBlue

Atlas Air Worldwide (NASDAQ:AAWW), which agreed to sell itself to Apollo Global (NYSE:APO) in early August, fell 1.1% after a report that the Dept. of Transportation is expected to try to block JetBlue's (JBLU) planned acquisition of Spirit Airlines (SAVE).

The Dept. of Justice is expected to file an antitrust lawsuit as soon as Tuesday to block the $3.8 billion airline deal, according to a Bloomberg report, which cited people familiar. At the same time, the DOT is expected to file a similar action that would block the transfer of Spirit's (SAVE) airline certificate.

A move by the DOT would be unprecedent as the regulator hasn't used it authority to block a certificate transfer since the airline industry was deregulated in 1978, according to the report.

Atlas Air (AAWW) is weaker as investors have been concerned about the sale to Apollo (APO) in recent weeks as there has been no word from the DOT in regards to the transaction. Atlas Air said in its 10-K filing on Feb. 23 that it was awaiting DOJ approval after all approvals had been received.

Dealreporter said in January that the deal parties were awaiting Federal Aviation Administration's transfer of operating certificates. The transfers were likely to be done by the end of January. The deal has received all of its global regulatory approvals.

Atlas Air (AAWW) said in late November after its holders had approved the deal that the transaction was expected to close in Q1.

Apollo (APO) agreed to buy Atlas Air (AAWW) for $5.2 billion, or $102.50 a share, in early August.