JetBlue Would Give Up Spots At Newark, LaGuardia If Merger Is Approved

NEWARK, NJ — JetBlue says it plans to transfer slots at Newark and LaGuardia airports to other airlines if the company’s controversial merger with Spirit is approved.

Earlier this year, the U.S. Justice Department filed a civil antitrust lawsuit to block JetBlue Airways Corporation’s proposed $3.8 billion acquisition of its largest and fastest-growing low-cost rival, Spirit Airlines Inc.

The deal would eliminate half of the “ultra-low-cost capacity” in the United States, federal officials claim.

“JetBlue and Spirit compete fiercely today on hundreds of routes serving millions of travelers,” the Justice Department wrote. “By eliminating that competition and further consolidating the United States airlines industry, the proposed transaction will increase fares and reduce choice on routes across the country, raising costs for the flying public and harming cost-conscious fliers.”

According to the Justice Department, JetBlue’s acquisition of Spirit would eliminate the “Spirit Effect,” where Spirit’s presence in a market forces other air carriers – including JetBlue – to lower their fares.

Despite the misgivings of federal authorities, JetBlue has continued to push forward with the proposed merger.

On Monday, JetBlue announced that it has reached a tentative agreement with Allegiant Air. If the deal crosses the finish line, JetBlue would sell its holdings at Newark Liberty International Airport and Boston Logan International Airport to Allegiant, mainly consisting of two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark.

JetBlue would also turn over up to five gates and related ground facilities at Fort Lauderdale-Hollywood International Airport to Allegiant to the Broward County Aviation Department as part of the deal, with plans to “facilitate Allegiant’s growth” at those gates.

“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,” said JetBlue's chief executive officer, Robin Hayes.

The proposed deal is subject to approval by federal and local airport authorities. It would take effect after the closing of JetBlue’s planned merger with Spirit.

JetBlue expects to close the transaction with Spirit in the first half of 2024, the company said.

• See Related: Spirit Wins Ex-Southwest Slots At Newark Airport – With A Condition

JetBlue’s latest proposal in Newark and Boston comes after it announced in June that it will divest all of Spirit’s holdings at LaGuardia Airport in New York City to Frontier. Under the terms of the agreement, JetBlue has agreed to transfer to Frontier all of Spirit’s holdings at LaGuardia, mainly consisting of six gates at the Marine Air Terminal and 22 takeoff and landing slots.

That deal would also take place only if the merger with Spirit is approved. A trial is scheduled for October in federal court.

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