![]() “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. “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,” said Robin Hayes, chief executive officer, JetBlue. JetBlue expects to close the transaction with Spirit in the first half of 2024. The divestitures are subject to approval by the local airport authorities as well as FAA/DOT, and are conditioned upon and will occur after the closing of JetBlue’s planned combination with Spirit. Together, these divestitures are part of JetBlue’s voluntary upfront commitments included in the merger agreement with Spirit and are conditioned on the closing of the JetBlue-Spirit transaction. On June 1, JetBlue announced that it will divest all of Spirit’s holdings at New York’s LaGuardia Airport to Frontier. JetBlue will also turn over up to five gates and related ground facilities at Fort Lauderdale-Hollywood International Airport to promote ultra-low-cost carrier growth. (NYSE: SAVE) at Boston Logan International Airport and Newark Liberty International Airport. JetBlue Airways Corporation (Nasdaq: JBLU) and Allegiant (Nasdaq: ALGT) today announced that the airlines have entered into a definitive agreement under which JetBlue will transfer to Allegiant all of the holdings of Spirit Airlines, Inc. (Updates with analyst comment in sixth and seventh paragraphs.Divestitures Help Promote the Continued Growth of Ultra-Low-Cost Options at Boston Logan, Newark Liberty International, and Fort Lauderdale-Hollywood Airports Similar terms govern the Frontier agreement. The divestitures are subject to approval by local airport authorities, the Federal Aviation Administration and the US Transportation Department and will only occur after the JetBlue-Spirit transaction closes. The company said it still expects to close the Spirit transaction in the first half of 2024. JetBlue declined to comment on terms of the agreements with Allegiant. “Given that the administration is just against mergers at all costs, and logic, this is unlikely to placate the DOJ,” she said in an email. Savanthi Syth, an analyst at Raymond James, doesn’t expect the moves will be enough to satisfy the Biden administration’s concerns. JetBlue also will give up five gates at Fort Lauderdale to the Broward County Aviation Department and will work with the agency on Allegiant’s use of the gates. ![]() Under the agreement, JetBlue will transfer to Allegiant two gates in Boston and two gates in Newark, along with the rights for 43 takeoff and landing slots at Newark. Allegiant climbed as much as 3.2% and JetBlue was little changed. Spirit rose as much as 15% in New York, its largest intraday gain since May 2022. JetBlue says the acquisition is necessary for it to compete with larger carriers that control more than 80% of the US commercial airline market. The US Justice Department is trying to break up the JetBlue-Spirit deal on grounds it would give the combined company too much market power in certain areas and lead to higher fares for consumers. JetBlue previously agreed to divest Spirit’s holdings at New York’s LaGuardia Airport to deep discounter Frontier Group Holdings Inc. JetBlue will shift all of Spirit’s holdings at Boston Logan International and Newark Liberty International and part of its assets at Fort Lauderdale-Hollywood International in Florida to Allegiant Travel Co., according to a statement Monday. Spirit shares jumped after the deal was announced. gates and flight slots at three airports to help lessen antitrust concerns over its pending acquisition of the low-cost carrier. agreed to transfer some Spirit Airlines Inc.
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