AAirlines

Spirit Airlines presses JetBlue to appeal merger block

Follow us on social media and always stay updated

Spirit Airlines is seeking to convince JetBlue Airways, to appeal a decision by a federal judge to block the tie-up between the sixth and seventh largest U.S. airlines, according to people familiar with the discussions.

Spirit’s shares have lost more than 60% of their value since U.S. District Judge William Young ruled on Tuesday that the company’s $3.8 billion sale to JetBlue should not proceed, siding with antitrust regulators who argued the deal would lead to higher fares for passengers.

Spirit has told JetBlue that their deal contract requires them to exhaust legal options to complete their deal, and that they should appeal the judge’s ruling, the sources said.

JetBlue, however, has yet to decide whether it will seek an appeal, according to the sources. It is assessing the chances of an appeal succeeding and is also mindful that Spirit’s business has deteriorated significantly since the two agreed the tie-up in July 2022, the sources said.

→ JetBlue to fly to Tulum (Mexico) from New York starting in 2024

Some analysts have pointed out that JetBlue may be better off paying Spirit and its shareholders a $470 million break-up fee to terminate the deal. But to do so, JetBlue will have to show that it fulfilled its obligation under the deal contract to do everything it can to get the deal completed.

It is possible that the two airlines agree to appeal the judge’s decision.

The companies said in a joint statement on Tuesday that they were “evaluating next steps as part of the legal process.” They have been afforded 30 days to lodge an appeal.

JetBlue had already sought to tackle U.S. regulators’ concerns by agreeing to divest gates and slots at key airports in New York City, Boston, Newark, New Jersey, Fort Lauderdale and Florida.

A person familiar with the matter told Reuters on Thursday that Spirit had began examining ways to refinance its debt should its deal with JetBlue fall through.

The four main U.S. carriers – United Airlines, American Airlines, Delta Air Lines and Southwest Airlines – control roughly 80% of the market following a series of airline mergers in the past few decades.

Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.

— Previous article

Turkish Airlines announces flights to Melbourne, its first destination in Australia
Next article —

Ryanair wants more slots in Spain, but regrets that Iberia is blocking its way