2023-09-11 14:21:36
(Additional details) by David Shepardson
Sept 11 (Archyde.com) – JetBlue Airways Corp JBLU.O said on Monday it had agreed to sell to Allegiant
ALGT.O all of Spirit Airlines’ assets SAVE.N at Boston and Newark Liberty airports as it works to win approval for its combination with Spirit.
JetBlue said it agreed to transfer two departure gates in Boston, two departure gates in Newark and 43 takeoff and landing clearances in Newark to Allegiant.
Additionally, it has agreed to turn over up to five gates at Fort Lauderdale-Hollywood International Airport to the Broward County Department of Aviation, and will work closely with the department to facilitate the growth of ‘Allegiant to this airport using these gates, JetBlue said.
The Justice Department, joined by the attorneys general of Massachusetts and other states, filed a lawsuit in March seeking to block JetBlue’s $3.8 billion acquisition of Spirit, alleging that the operation was “allegedly illegal” and that it “would result in an increase in fares and a reduction in the number of seats, which would harm millions of consumers on hundreds of routes” The trial is scheduled to begin on October 16.
The operation would be the largest in the American airline sector since the merger of American Airlines AAL.O and US Airways in 2013.
On June 1, JetBlue said it would divest to Frontier
ULCC.O all Spirit assets in New York LaGuardia. The agreements with Allegiant and Frontier are contingent on the completion of the JetBlue-Spirit transaction and must be approved by regulatory and airport authorities.
JetBlue Chief Executive Robin Hayes said “the divestment commitment, while not necessary to ensure continued growth of the dynamic ultra-low-cost carrier segment, is intended to dispel any doubt regarding our commitment to promoting competition”
JetBlue said in July it would not challenge a U.S. judge’s order in May ordering it to end its alliance with American Airlines. The move ended a three-year-old alliance, the Northeast Alliance, which allowed the two carriers to coordinate flights and pool revenue.
JetBlue argued that the end of its alliance with American made the government’s objections to its deal to buy Spirit “entirely moot.”
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