Monday Morning Merger is Off

Both JetBlue Airways and Spirit Airlines filed for merger of the two airlines in July 2023. The merger for which after another airline Frontier Airlines vowing for Spirit Airlines JetBlue came out as the contender for a $3.8 Billion dollar cost.

As time moved forward from July 2023 the DOJ – department of justice got involved regarding a lawsuit filed against the merger. The lawsuit was based on the fact that the consumer would have less choice and availability to low cost and competitive pricing. Other aspects were involved but by January 2024 the final decision by the judge in the case came to not allowing the merge to move on

A few weeks later at the end of January an appeal by JetBlue Airways was filed as Spirit Airlines asked JetBlue Airways to contest the blocked merger and ask for an appeal. Another hearing was slotted for June 2024 in Boston.

A couple of times back and forth by both airlines’ made comments they did or at one point did not want to merge after that appeal was made up until ten days ago. Now as of Monday March 4, 2024, both airlines made separate statements regarding the merger is off.

The decision came down as the realize the merger deadline July 24, 2024, would not be made due to legal complications. Thus, both airlines agreed that the merger will no longer move forward. Spirit Airlines President and C.E.O. made a statement and commented on that he was disappointed that the deal could not continue.

With this dela no linger JetBlue Airways must pay Spirit Airlines a $69 Million dollar termination fee.

Both airlines will need to reconfigure their business and marketing strategy. In the last year we have seen both airlines make route cuts and changes in the effort and idea of both merging as one airline. Other factors play in the operating difficulties with the newer Airbus A320 neo engine problems from Pratt and Whittney, This alone has side lined a number of aircraft that can operated at any given time. This also goes for JetBlue Airways. Best thing for JetBlue Airway is go back and look at the beginning when David Neeleman was at the helm.

Editorial Fire and Aviation TV March 4, 2024