JetBlue Airways Corporation and Frontier Group Holdings, Inc. today announced that their two airlines have officially agreed upon a definitive pact in connection with JetBlue’s intended merger with Spirit Airlines.
JetBlue divulged that, under this new agreement, the company will divest itself of all of Spirit Airlines’ holdings at New York’s LaGuardia Airport, and cede those assets to Frontier. These expropriations are part of JetBlue’s upfront pledges embedded in the JetBlue-Spirit merger contract, and are conditional upon the final closing JetBlue’s planned Spirit acquisition.
“We are committed to ensuring our combination with Spirit preserves ultra-low-cost carrier access in New York,” JetBlue CEO Robin Hayes said in today’s statement. “We are pleased that this agreement with Frontier will maintain the same level of ultra-low-cost carrier service at LaGuardia Airport.”
“We’re pleased to have reached this agreement to acquire Spirit’s slot pairs and leasehold interests at New York’s LaGuardia Airport, pending regulatory approval of the JetBlue-Spirit merger,” said Barry Biffle, President and CEO of Frontier Airlines. “It will enable us to significantly expand our operations at LaGuardia and deliver even more ‘Low Fares Done Right’ to consumers in the greater New York City area.”
Under the terms of this deal, the New York-based carrier consents to transfer the whole of Spirit’s securities at LaGuardia—primarily consisting of six gates at the Marine Air Terminal, and 22 takeoff and landing slots—to Frontier.
JetBlue’s commitment to these divestitures is contingent upon, and will occur only after the final closing of, JetBlue’s in-the-works arrangement to take over Spirit Airlines, and its fulfillment is also subject to other final closing conditions; including approval by the Port Authority of New York and New Jersey, and the Federal Aviation Authority (FAA)/Department of Transportation (DOT).
JetBlue said that it’s projecting its transaction with Spirit will be finalized sometime during the first half of 2024.
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