JetBlue has announced that it has ended its merger agreement with Spirit Airlines, after a US judge blocked the deal on anti-competitive grounds in January.
JetBlue announced plans to buy Florida-based airline Spirit for $3.8 billion in July 2022, with the goal of creating the fifth-largest U.S. airline and a “low-fare domestic challenger” to the Big Four. Dominant majors in the United States: American, United, Delta and Southwest Airlines.
Spirit shareholders then approved the merger deal in October 2022, having previously terminated a $2.9 billion deal to merge with U.S. low-cost airline Frontier.
The low-cost airlines said “termination is the best path forward” as required closing conditions, which included receiving necessary legal and regulatory approvals, were unlikely to be met before the merger deal deadline. on July 24, 2024. Under the agreement, JetBlue will pay Spirit $69 million.
Joanna Geraghty, CEO of JetBlue, commented:
“We believed this merger was worth pursuing because it would have unleashed a high-value, low-fare domestic competitor to the big four airlines.
“We are proud of the work we did with Spirit to craft a vision that challenges the status quo, but given the obstacles that remain to closing it, we decided together that the interests of both airlines are best served moving forward independently. We wish the entire Spirit team the best.”
Geraghty added:
“JetBlue has a strong organic plan and unique competitive advantages, including a beloved brand, unique value proposition and high-value geographies.”
“We have already begun to advance our plan to return to profitability. We look forward to sharing more about our progress in the coming months.”
We spoke to the former CEO in 2022 about plans to merge with Spirit Airlines:
Interview with Robin Hayes, CEO of Jetblue
jetblue.com; spirit.com
