JetBlue Prioritizes Spirit Airlines Acquisition Over American Airlines Alliance

Why is JetBlue so focused on acquiring Spirit Airlines?

JetBlue finally clarified that it prioritizes its Spirit Airlines Acquisition over its alliance with American Airlines.

This was revealed after the New York-based airline announced its decision not to appeal the court's decision.

JetBlue Prioritizes Spirit Airlines Acquisition

JetBlue Prioritizes Spirit Airlines Acquisition Over American Airlines Alliance
A JetBlue Airways jet sits on the tarmac June 19, 2001June 19, 2001 at the Ft. Lauderdale/Hollywood International airport in Ft. Lauderdale, Florida. The low-fare airline based in New York announced at the Paris Air Show today that it had signed a contract with Airbus for the purchase of up to 48 additional new A320 aircraft. Valued at more than $2.5 billion. Joe Raedle/Getty Images

According to Fox Business' latest report, US District Judge Leo Sorokin in Boston said that the alliance between JetBlue and AA should be terminated since it diminished the domestic market competition.

In June, American Airlines said it would challenge the May 19 ruling of the court to protect the Northeast Alliance (NEA). However, on Wednesday, July 5, JetBlue announced that it did not appeal the court's decision.

In its official press release, JetBlue said it strongly disagrees with the court's decision regarding NEA. However, JetBlue said it would no longer challenge the court's determination since NEA cannot continue as crafted.

"Despite our deep conviction in the procompetitive benefits of the NEA, after much consideration, JetBlue has made the difficult decision not to appeal the court's determination," said the low-cost airline.

Will JetBlue American Airlines Alliance Really End?

JetBlue Prioritizes Spirit Airlines Acquisition Over American Airlines Alliance
JetBlue Airlines planes are seen near Spirit Airlines planes at the Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida. JetBlue announced it is taking a hostile position in its effort to acquire Spirit Airlines. Spirit previously rejected a takeover offer from JetBlue, favoring an earlier deal to merge with Frontier airlines. Joe Raedle/Getty Images

The New York-based carrier said that the process will take months. Since JetBlue is sure of its decision, the travel company can now focus on its acquisition of Spirit Airlines.

JetBlue explained that once the Northeast Alliance is terminated, the concern of the US Department of Justice regarding its partnership with a legacy carrier will be solved. The company added that this should make DOJ reconsider its Spirit Airlines acquisition.

"We will now turn even more focus to our proposed combination with Spirit, which is the best and most effective opportunity to truly transform the competitive landscape in the US," said JetBlue.

The airline added that acquiring Spirit Airlines will help it bring its services to more markets and routes across the United States. JetBlue said that the planned combination with Spirit Airlines will allow it to be "a force for good in the industry."

You can visit this link to learn more about JetBlue's decision to end its partnership with American Airlines.

Tags
JetBlue, American Airlines
Real Time Analytics