Spirit Airlines has called on the U.S. Department of Transportation (DOT) to reject the strategic alliance between JetBlue Airways and United Airlines, labeling it as “anti-competitive.” The request, filed this Tuesday, argues that this pact between a dominant carrier and a low-cost operator would severely harm market competition.
What Does the “Blue Sky” Alliance Entail?
The proposed alliance, dubbed “Blue Sky,” was announced by JetBlue and United in May. According to the two airlines, the agreement would allow passengers to book flights interchangeably on either carrier’s website and earn or redeem points through their respective frequent flyer programs. However, Spirit claims this would effectively turn JetBlue into a “de facto vassal of United.”
“This anti-competitive tie-up with a dominant airline would neutralize the competitive benefits provided by an existing low-cost operator,” Spirit warned in its formal submission to the DOT.
JetBlue Responds: “No Schedule Coordination or Revenue Sharing”
JetBlue has countered the accusations, stating that Spirit is misrepresenting the alliance’s true purpose. According to JetBlue, the agreement does not involve schedule coordination or revenue sharing. Both airlines will continue to compete independently, maintaining control over their flight schedules, pricing, and marketing, each under its own brand and flight numbering.
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A Precedent That Worries Spirit
Spirit is not only challenging the current agreement but also what it could trigger in the future. The low-cost carrier warns that if such alliances are approved, other industry giants like American Airlines and Delta Air Lines would likely seek similar deals, leaving smaller airlines with no choice but to consolidate to survive. This, Spirit argues, would dangerously increase power concentration in the industry.
“American and Delta will almost certainly pursue similar agreements, which could leave smaller carriers with no option,” Spirit cautioned.
Access to Slots at JFK and Operational Changes
One of the most critical aspects of the deal is JetBlue’s provision of slots to United at New York’s John F. Kennedy International Airport. United would gain slots to operate up to seven daily round-trip flights starting in 2027. Additionally, the two airlines will exchange eight flight slots at Newark Liberty International Airport in New Jersey.
Another element of the pact involves United shifting some seasonal and holiday services to JetBlue’s “Paisley” digital platform, aiming to integrate experiences without fully merging operations.
Background: Previous Blocked Alliances and Mergers
The “Blue Sky” initiative emerges amid a challenging landscape for JetBlue. In March 2024, the airline abandoned its $3.8 billion merger attempt with Spirit after a federal judge blocked the deal over antitrust concerns. JetBlue also saw its “Northeast Alliance” with American Airlines dissolved in 2023 by court order.
Currently, JetBlue—the sixth-largest airline in the U.S.—is struggling to regain profitability following the pandemic’s impact, having posted profits in only two of the last nine quarters.
This new attempt at a commercial alliance reignites the debate over the tension between growth strategies for major airlines and the need to preserve a competitive market. Spirit aims to halt what it sees as a direct threat to its business model and the diversity of the U.S. aviation ecosystem. Will the DOT intervene, or will it pave the way for a new wave of consolidation? The decision will mark a pivotal moment for the future of domestic air travel.
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Un apasionado por la aviación, Fundador y CEO de Aviación al Día.