by Donald Wood
Last updated: 12:15 PM ET, Mon September 11, 2023
Low-cost carrier Allegiant Air announced plans to expand
service in Fort Lauderdale, New York City and Boston as part of a new agreement
with JetBlue Airways.
As part of the deal, JetBlue will transfer its Spirit
Airlines holdings at Boston Logan International Airport and Newark Liberty
International Airport to Allegiant, consisting of two gates in Boston, two
gates in Newark and 43 takeoff and landing authorizations in New Jersey.
In addition, JetBlue will turn over up to five gates and
related ground facilities at Fort Lauderdale-Hollywood International Airport to
the Broward County Aviation Department, with the carrier working to facilitate
Allegiant’s growth in Florida.
“We are committed to long-term growth, especially in areas
such as New York, Boston and Florida,” Allegiant chief revenue officer Drew
Wells said. “This agreement will allow us to expand our service in these cities
and ensure that customers have even more access to affordable, nonstop flights
for their travel needs.”
The partnership is part of JetBlue’s planned combination
with Spirit, which is expected to close in the first half of 2024. The
divestitures are also subject to approval by local airport authorities, the
Federal Aviation Administration and the U.S. Department of Transportation.
“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,” JetBlue CEO Robin Hayes said. “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.”
“Our divestiture commitment, while not needed to ensure the
continued growth of the vibrant ultra-low-cost carrier segment, is aimed at
removing any doubt of our commitment to promoting competition,” Hayes continued.
In June, JetBlue announced it would divest all of Spirit’s
holdings at New York’s LaGuardia Airport to Frontier Airlines as part of the
merger.
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