Separately, JetBlue management committed in writing to both flight attendant groups and their unions that it would engage in expedited negotiations for the joint collective bargaining agreement, Nelson wrote. Another opportunity for JetBlue assuming it completes the merger is the expansion of its Fort Lauderdale base into a true connecting hub into the Caribbean and Latin America. JetBlue will gain 9% of the market in comparison to 23% for the Big Four. JetBlue continues to make the deal better for Spirit shareholders regardless of which way they vote because Frontier continues to match the deal. JetBlue and Spirit make their final public push for a merger before a DOJ decision on whether to sue to block the deal. JetBlue will insource work and not use regional flying. JetBlue has hinted that it may launch new services to Hawaii if its proposed merger with Spirit Airlines gets approved by regulators. JetBlue is placing its B6 code A low-cost airline will be able to compete with the major airlines after acquiring a new airline from Neeleman. The credit card programs that are branded by each company and are associated with loyalty programs will remain separate until the transaction is completed. With HALs addition of a flight to LGB, Im thinking there will be a merger sometime soon. In contrast, JetBlue and Spirit carried just 8.3% of passengers. Samuelsen said he opposes the transactionhe views it more as an acquisition than a merger because JetBlue masquerades as being hip and groovy, but in fact is strongly anti-union and should not be rewarded with expansion. He said his members would be harmed in a merger. In the earnings space, Air Canada still cant seem to figure out how to Reliving bad memories is never pleasant. JetBlue, the fifth largest airline in the United States, will pay $3.8 billion for Spirit Airlines. In a letter to JetBlue flight attendants, also written Feb. 23, JetBlue CEO Robin Hayes led by noting that Nelson had endorsed the merger. Neither of the two carriers currently serves Hawaii, and the destination is one of nearly two dozen routes that would be made possible through a merger. Not after the massive order for Airbus and Boeing planes it announced last week. But we can use their gates at other airports JetBlue intends to keep the Spirit name and operations going. Additionally, Hawaiians HA code, which has been on select JetBlue flights since 2012, is expanding to additional destinations in JetBlues growing network. Furthermore, the agreement will give JetBlue greater access to additional capital, allowing it to compete more effectively with United and Delta. It is still subject to antitrust review by the government. If the deal is approved, JetBlue will buy Spirit for $3.8 billion and become the fifth largest airline in the United States. We use cookies to improve your experience on our site and to show your relevant advertising. However, there are no guarantees that the merger will go through, as the Justice Department has previously taken a stand against the conglomeration of large companies. Finally, an acquisition of Spirit would also give JetBlue access to Spirits valuable customer data, which would be extremely helpful in planning future marketing and pricing strategies. If approved, the combined carriers would form the fifth-largest airline in the U.S. regarding market share, behind American Airlines, Delta, United, and Southwest. There are 458 planes in the combined company, but none of them are owned. Citing two people familiar with the situation, Politico said Friday that the department remains unconvinced that removing Spirit from the market would not cause fares to rise. JetBlue Airways Corp. and Spirit Airlines, Inc. are reportedly making a last-minute push for a merger ahead of a decision from the Justice Department on whether to sue to block the deal. Hawaiian and JetBlue also offer members of each carrier's loyalty program the opportunity to earn and redeem points or miles for travel on either carrier. While JetBlue has opposed organizing drives, it says it works together with its unions. If approved, the combined carriers would form the fifth-largest airline in the U.S. regarding And administration officials have repeatedly spoken out against further consolidation in already highly-consolidated industries. Rich Thomaselli, Bowmans Travel Brief: Wi-Fi in the Skies The Justice Department has a little more than a week to make a final call. JetBlue also outlined 15 other international markets where connections would be competitive with existing flight options. JetBlue announced a deal for a $3 billion acquisition of Spirit Airlines on Thursday. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. If we lose the NEA, right, the NEA is off the table, Hayes said, If we win the NEA, we won the NEA because its pro-competition. The potential new routes were mentioned by the New York-based carrier in a standard request to transfer Spirits international route authorities to JetBlue. (Ting Shen/Bloomberg via Getty Images / Getty Images), Former Spirit Airlines CEO on travel industry: 'Everyone can step up their game'. Click here to learn more. NPR's Leila Fadel speaks with Diana Moss, president of American Antitrust Institute, about actions the Department of Justice may take to block the Spirit Airlines Eric Bowman, Best Destinations for Travelers Who Hate People JetBlue has forecast 5.5-8.5 percent capacity growth over 2022 with executives saying most of that will come from restoring aircraft utilization, which limits the impact of further delivery delays at Airbus. American Airlines acquired the airline in February 2006 for a total of $3 billion, making it the third largest airline in the United States. Fourth quarter financial reports continue to roll in. Opinions expressed by Forbes Contributors are their own. When asked for details about how the merger could drive down prices, Hayes said fares are a function of capacity and that Spirit flights will adopt JetBlues seat configuration. Major unions have lost court cases and in one instance suffered severe financial damage in the process. All Rights Reserved. Spirit CEO Ted Christie said Tuesday that he expects an initial decision from the Justice Department in the next 30 days or so.. If I didnt have assurances from the company that flight attendants would share in the benefits, I would oppose. She noted that workers at regional airlines make 45% less than at mainline airlines. On Tuesday morning, there were 43 delays and 87 cancellations at Logan Airport by 9:30 a.m., according to flight-tracking website FlightAware. Tomato shortage in UK has politicians looking for answers, Chicago voters resoundingly rejected Mayor Lori Lightfoot's reelection bid, China is buying more U.S. farmland, and some say that's a national security threat. The story has been updated to reflect the 15 other international markets refer to connectivity, and not new nonstops. But JetBlue claims the merger would create more competition. WebTransfer from JetBlue to Hawaiian's service at Los Angeles (LAX), New York (JFK), Boston (BOS) and more. Powered and implemented byFactSet Digital Solutions. Will the JetBlue merger affect air travelers to NYC? DOJ mulls whether to sue to block Spirit Airlines from merging with JetBlue. The airlines higher costs, as well as the slightly higher quality of service JetBlue provides, will result in higher fares. There are many reasons why JetBlue would want to acquire Spirit Airlines. Four years ago Mayor Lori Lightfoot swept every corner of the city and won all 50 wards. Spirit Airlines and JetBlue are merging in a deal valued at approximately $3.8 billion, marking the end of a months-long bidding war and the end of Spirits attempt to acquire Frontier Airlines. Since the bidding and fiendish competition between Spirit's two suitors, JetBlue and Frontier, was done with and the New York-based hybrid carrier emerged victorious, it has been pretty quiet surrounding the deal while regulators scrutinize Courtesy of Spirit Airlines. Air Canada, Adventure and Culture in Tahitis Islands The merger may face regulatory resistance as a result of the rigorous antitrust review required. Please note that this link will open an external page which might not meet reasonable accessibility guidelines. Fares are based on booking patterns happening at that particular time. JetBlue and Spirit carried 3.9 and 4.4 percent of travelers, respectively. But the Justice Department, which has been investigating the proposed merger since summer, remains unconvinced that removing ultra-low-cost carrier Spirit from the market would not cause fares to rise, according to two people familiar with the matter who were granted anonymity in order to speak freely. In his Feb. 23 letter to Garland, Samuelsen wrote that the two TWU work groups recently won their first collective bargaining agreements after long and hard fights against anti-union management teams. He said, We believe JetBlue management, which will be the successor management team for any combined carrier, has the intent to not fully honor these agreements should they be allowed to acquire Spirit. He said JetBlue fought bitter battles against flight attendant unionization and, more recently, against a failed bid to organize fleet service workers by the International Association of Machinists. The Department of Justice has been investigating the merger since the summer and Politico had previously reported that it was leaning toward challenging the merger, citing individuals with knowledge of the matter. The merger with Frontier and Spirit will always make more sense so long as the NEA is in place and throwing more cash at the deal wont sway Spirits board. Most major airlines are in negotiations at this time, and many are contentious. Assuming that the JetBlue/Spirit merger comes to fruition, well be left with one major ULCC. It took American Airlines and JetBlue to court in response to the alliance between the two carriers in the northeast. In recent years, JetBlue has been one of the most successful airlines in the United States. It is expected that the transaction will be completed in the first half of 2024 as a result of the regulatory process. Have Questions? ( I consent to receive communications and agree to, Infamous Coco Palms Kauai | Why It Just Wont End, Flight Reviews: Hawaiian Vs. Southwest Showdown, Go Big and Predatory: Southwest Hawaii And Costco, Three Airlines Fast-Chopping Hawaii Routes In Shakeup, Hawaiian Joins Mid-Air Diversions | Now 7 In Three Weeks. Potential new routes include ones to Antigua, Belize City, Cincinnati, Liberia (Costa Rica), Memphis, Minneapolis-St. Paul, and Savannah, the filing states. Russia Has Nine A-50 Radar Planes. Former Spirit Airlines CEO Ben Baldanza provides his outlook on the travel industry amid pilot shortages and outdated tech. WebBook your Hawaiian Airlines-only flight on hawaiianairlines.com , and be sure to add your TrueBlue number when you complete your reservation or call 1-877-HA-MILES (426 He added that JetBlue has been in discussions with a number of state [attorneys general] as well. And he also said that there will be over the next week or two, a very significant amount of political bipartisan support for this transaction. Hayes declined to comment on any specific meetings with the DOJ. Hotel & Resort, 21 Amazing Vacation Ideas for Big Families Airlines & Airports We also use third-party cookies that help us analyze and understand how you use this website. The price tag for Spirit Airlines is said to be around $3.8 billion. On Wednesday Hayes and Christie met with the leadership at the Justice Departments antitrust division as part of a final bid to convince the government to not challenge the deal, according to the people. One of the benefits of bringing these two airlines together is we can increase the utilization of the airline, Hayes said. NPR's Leila Fadel speaks with Diana Moss, president of American Antitrust Institute, These cookies will be stored in your browser only with your consent. But whats more important to focus on is the aggregate effect of the larger airline, he said. February 10, 2023. Low-cost travelers may be held back if there is a larger airline with a larger capacity serving them. By combining JetBlue and Spirits gates in Terminal 5, a larger JetBlue will have more real estate to better optimize and expand the number of flights and destinations at LAX beyond what the two carriers do separately, said JetBlue. Those were picked amid DOJ concerns that JetBlues Northeast Alliance with American Airlines reduces competition and consumer choice, said JetBlue Senior Vice President of Government Affairs Robert Land. 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