NEW YORK— JetBlue Airways (B6) founder David Neeleman criticizes Spirit Airlines’ (NK) merger decisions, advocating for the initially planned Frontier Airlines (F9) partnership.
Neeleman, who departed JetBlue in 2007 and currently leads Breeze Airways (MX), emphasizes Spirit’s strategic misstep in a phone call interview with the Washington Post.
Why Spirit Airlines JetBlue Merger Failed?
Spirit Airlines originally announced a merger with Frontier Airlines in 2022, targeting a consolidation of major low-fare carriers.
JetBlue’s higher-value bid redirected Spirit’s merger trajectory, ultimately failing after antitrust regulators blocked the deal in January 2024. Both airlines terminated merger efforts in March.
Current JetBlue CEO Joanna Geraghty acknowledges “three years of distractions” as JetBlue pursues independent operations. Spirit Airlines faces survival challenges amid major carriers introducing competitive low-cost fares.
Spirit Airlines shifts its business model toward traditional airline services, introducing assigned seating and premium cabin options. This strategic pivot marks a departure from its ancillary revenue-focused approach.
Neeleman observes fundamental market dynamics, stating Spirit and Frontier’s movement toward conventional airline models reflects passenger preferences for established carriers like United Airlines (UA) or Delta Air Lines (DL).
Also Read, Spirit Airlines Reveals New Product and Service Under New Brand Strategy
Founder of Five Airlines
David Neeleman, a 65-year-old aviation entrepreneur, has founded five airlines over four decades, most notably JetBlue. His latest venture, Breeze Airways, launched in 2021, targets midsize markets with low-fare flights.
The airline recently expanded to 66 locations, including Washington Dulles International Airport and Ogdensburg International Airport in New York.
Breeze Airways receives a new aircraft approximately every three weeks, fueling Neeleman’s ambitions for further expansion. He plans to explore new domestic routes and international destinations in Europe and the Caribbean.
Neeleman’s aviation career began in the 1980s with Morris Air, coinciding with the deregulation of the airline industry. This shift sparked intense competition among carriers, a trend that continues today.
While Breeze Airways doesn’t plan to open airport lounges, Neeleman supports JetBlue’s decision to do so. He views it as a strategic move to generate additional revenue through access fees or increased premium seat sales.
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