This week has seen JetBlue make certain sacrifices in order to keep the Spirit Airlines merger alive by divesting certain elements to Allegiant.
Such a move represents a significant shake-up in its operations across Boston, New York Newark, and Fort Lauderdale.
Without further ado, let’s get into it…
JetBlue Sacrifices Elements to Keep Spirit Merger Alive…
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It is understood that JetBlue will transfer to Allegiant all of the holdings of Spirit Airlines in Boston and New York Newark to Allegiant.
On top of this, the carrier will also turn over up to five gates and related ground facilities at Fort Lauderdale-Hollywood International Airport, in what they deem will “promote ultra-low-cost carrier growth”.
The American carrier has said that this will only happen on the condition that the transaction of the Spirit merger being completed, which is expected to take place in the first half of next year.
In the statement, it says the following on the overall deal:
“Under the terms of the agreement, JetBlue has agreed to transfer to Allegiant all of Spirit’s holdings in Boston and Newark, principally consisting of two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark.”
“In addition, JetBlue has agreed to relinquish up to five gates at Fort Lauderdale to the Broward County Aviation Department and will work closely with the Department to facilitate Allegiant’s ULCC growth at FLL using these gates.”
Adding to this was Robin Hayes, the CEO of JetBlue:
“Over the past twenty years, JetBlue has established itself as a competition MVP, bringing high-quality, affordable service to a wide variety of travelers across the United States”.
“Merging with Spirit will allow us to bring our signature service and low fares to even more people and places across the country and beyond.”
“Our divestiture commitment, while not needed to ensure the continued growth of the vibrant ultra-low-cost carrier segment, is aimed at removing any doubt of our commitment to promoting competition.”
Looking ahead, it will be interesting to see whether there will be anymore hurdles to fight on the acquisition of Spirit Airlines.
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