A JetBlue Spirit
Because of a judge’s ruling, JetBlue is no longer merging with Spirit Airlines. JetBlue and Spirit Airlines have officially stopped all merger plans after a federal judge blocked their efforts.
“We believed this merger was worth pursuing because it would have unleashed a national low-fare. And a high-value competitor to the Big Four airlines,” Joanna Geraghty, JetBlue’s chief executive officer, said.
Our collaboration with Spirit has resulted in a visionary approach that challenges the status quo.
“We wish the entire Spirit team the best in the future, and we are confident in our ability to thrive in the developing airline industry.”
etBlue first announced its intention to buy Spirit for $3.8 billion in 2022. However, in January, a judge in Massachusetts determined that the merger was illegal because it would have made JetBlue one of the top five airlines in the U.S.
Both airlines originally planned to appeal the decision. Still, on March 4, they declared they would no longer pursue the merger. According to JetBlue’s statement, they decide because “required closing conditions. Conditions include receiving necessary legal and regulatory approvals unlikely to be met by the merger agreement’s outside date of July 24, 2024.”
Instead of combining forces, JetBlue will now pay Spirit $69 million as compensation for terminating the merger.
Despite Ted Christie’s disappointment in the failed merger, experts believe travelers will benefit from it. The failed merger could increase competition, potentially resulting in more affordable flights.
This failed merger is a positive outcome for all travelers, regardless of their previous experience with Spirit Airlines.
Low-cost airlines like Spirit, Frontier, and Allegiant play a crucial role in the market. When low-cost airlines are present, it forces more prominent airlines to lower their prices so that everyone can benefit from a fair market.
