JetBlue gains Spirit slots at LaGuardia and considers moving terminals

JetBlue Airways has won slots for Spirit Airlines at New York's LaGuardia Airport and is looking to return to the failed low-cost carrier's former home, a major shakeup at the congested airport less than three months after the discounter collapsed in the biggest failure of a U.S. airline in decades.

The slots at the tightly controlled airport are for 12 round-trip flights and are still subject to final regulatory and court approvals, JetBlue said.

Slots and gates are valuable at congested airports like LaGuardia because tight airspace restrictions and crowded airports in a big city like New York limit airline growth.

Carriers have resorted to using larger planes that can accommodate more passengers to increase their capacity in some cases because infrastructure is so limited.

JetBlue told staff in a memo on Monday, seen by CNBC, that it is now moving to “evaluate our plans for slot machines as we consider opportunities for our network strategy,” and noted that no expansion will occur until 2027.

According to the memo, JetBlue wants to move into Terminal A, also known as Marine Air Terminal, an Art Deco facility where Spirit operated until it closed in early May. JetBlue previously operated out of that space before moving to a newer terminal years ago.

“It's a convenient terminal that travelers love,” JetBlue said of the Marine Air Terminal.

The New York-based airline, which is in the midst of a major expansion at Fort Lauderdale-Hollywood International Airport in Florida, said last month it would reduce staff at LaGuardia and Newark Liberty International Airport in New Jersey and increase service at Fort Lauderdale.

The airline did not immediately respond to a request for comment.

Spirit's airport assets are now going through the US Bankruptcy Court in New York.