NEW YORK- JetBlue Airways (B6) and Allegiant (G4) have officially agreed to a deal in which JetBlue will transfer all of Spirit Airlines (NK) holdings at Boston Logan International Airport (BOS) and Newark Liberty International Airport (EWR) to Allegiant.
Additionally, JetBlue will provide up to five gates and related ground facilities at Fort Lauderdale-Hollywood International Airport (FLL) to support the growth of ultra-low-cost carriers.
JetBlue Allegiant Divestiture Agreement
As previously announced on June 1, JetBlue will also divest all of Spirit’s holdings at New York’s LaGuardia Airport (LGA) to Frontier Airlines.
These divestitures are part of JetBlue’s proactive commitments outlined in the merger agreement with Spirit and are contingent upon the completion of the JetBlue-Spirit merger.
Approval from local airport authorities and FAA/DOT is required for these divestitures, and they will take place after the JetBlue-Spirit transaction is finalized. JetBlue anticipates the completion of the Spirit merger in the first half of 2024.
JetBlue’s CEO, Robin Hayes, expressed that JetBlue has established itself as a strong competitor in the aviation industry over the past two decades by providing high-quality, affordable services to travelers across the United States.
The merger with Spirit Airlines will enable them to extend their signature service and competitive fares to a wider audience.
The divestiture commitment, though not necessary for the growth of the ultra-low-cost carrier segment, demonstrates their dedication to promoting healthy competition in the industry.
Allegiant’s Chief Revenue Officer, Drew Wells, emphasized their commitment to long-term growth, particularly in key areas like New York, Boston, and Florida.
This agreement will facilitate their expansion in these cities, ensuring that customers have increased access to affordable, nonstop flight options.
As part of the agreement, JetBlue will transfer Spirit’s holdings in Boston and Newark, including two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark to Allegiant.
Additionally, JetBlue will return up to five gates at Fort Lauderdale to the Broward County Aviation Department, working closely with them to support Allegiant’s growth as an ultra-low-cost carrier at FLL using these gates.
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