Assuming that the JetBlue/Spirit merger comes to fruition, well be left with one major ULCC. Terms apply. But opting out of some of these cookies may affect your browsing experience. The acquisition will make it the fifth largest airline in the country. Hawaiian gets no love. Low-cost travelers may be held back if there is a larger airline with a larger capacity serving them. 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 It is also expected that the deal will result in hundreds of new jobs at both airlines. JetBlue and Spirit Airlines announced Thursday they have reached an agreement on a merger that would create the fifth largest airline in the U.S. In her Feb. 24 letter to Garland. That case is still pending. However, President Biden nominated Julie Su on Tuesday. This is due to Spirit and Frontier cancelling their merger agreement in favor of a bid of $3.8 billion in all cash. Spirit Airlines is well-known for its outstanding customer service and low prices. Additionally, it would give JetBlue a much needed boost in the competitive airline market. The parties had previously agreed on a deadline of Feb. 28, but one of the people familiar with the matter now says that date is expected to slip. 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-JetBlue merger. In Any doubts about Air Indias ambition to become a leading global airline? Samuelsen said Tuesday that unions dont have to agree on everything to get along. Photo: Spirit Airlines, Airbus A320neo. A merger or acquisition would likely change the JetBlue brand, which could alienate passengers. Despite overwhelming support from the AFA, we know TWU has shared different views on where they stand, he wrote. As a result, they are important, not only because of their economic impact, but also because they are improving the aviation industry. How did it happen? He is the founder of five airlines, including Morris Air, WestJet, JetBlue Airways, and Azul Brazilian Airlines, among others. The US Department of Justice headquarters in Washington, D.C., Friday, Feb. 17, 2023. United Airlines, Stay in the Know with the Air Canada Flash With more flexibility, greater resources, and an expanded route network, the JetBlue/Spirit combination will be better positioned to take advantage of the now largely liberalized international operating environment and better utilize U.S. rights under applicable air transport agreements, thereby increasing service alternatives for consumers, JetBlue said. This applies to ANY wildcat actions, including slowdown, work-to-rules, withdrawal of enthusiasm (WOE), sickouts, etc. For customer inquiries, please visit the Contact Us page for information and a list of Frequently Asked Questions. 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. NPR's Steve Inskeep speaks with Republican Rep. According to JetBlue, the companys primary goal is to keep low fares, but some industry professionals believe that the companys merger with American Airlines may actually harm competition. Hayes has said several times in the past two weeks that the companies intend to fight for their deal in court, if necessary. But we can use their gates at other airports NPR's Leila Fadel speaks with Diana Moss, president of American Antitrust Institute, Potential new routes include ones to Antigua, Belize City, Cincinnati, Liberia (Costa Rica), Memphis, Minneapolis-St. Paul, and Savannah, the filing states. Quotes displayed in real-time or delayed by at least 15 minutes. 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. There are many reasons why JetBlue would want to acquire Spirit Airlines. Hayes on Thursday also noted that those agreements can always be extended. San Francisco. The JetBlue-Spirit Airlines merger is officially announced, but it isnt yet a done deal; the airlines will operate under separate names until the deal is completed in early 2023, with the closing date being determined at that time. Travel news, reviews and intel for high-flyers, The proposed merger would allow the carriers to boost operations at LAX, allowing them to launch flights to Hawaii and provide more choices for consumers, Photo: Hawaiian beach - Courtesy of Luke Mckeown / Unsplash. If approved, the combined carriers would form the fifth-largest airline in the U.S. regarding The potential Hawaii flights that were teased in the new filings submitted to the Department of Transportation would be possible thanks to the increased number of gate facilities in Los Angeles International (LAX) Airport that would result from the merger. JetBlue Airways announced on Thursday that it had agreed to be acquired by Spirit Airlines, with the deal expected to close no later than the first half of 2024, subject to shareholder and regulatory approval. Hawaiian offers non-stop service to Hawaii from moreU.S.gateway cities (11) than any other airline, along with service fromJapan,South Korea,China,Australia,New Zealand,American Samoaand Tahiti. Furthermore, to address concerns, JetBlue has offered to sell off Spirit's operations at Newark Liberty International Airport, LaGuardia Airport and Boston Logan International Airport and five slots at Fort Lauderdale-Hollywood International Airport. 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. More than 3,000 jobs will be created as a result of the new airline. Low-cost carriers are becoming more popular, as they are changing the way people travel. JetBlue and Spirit Airlines have announced a separation. Not currently on the table is an offer to abandon the alliance, which the DOJ challenged in court last year and is currently awaiting a ruling from a federal judge in Boston. This would challenge Americans existing hub down the road in Miami. For more information please visitJetBlue.com. Politico noted that Hayes has said several times that the companies intend to fight for their deal in court, if necessary. JetBlue flight attendants are in the middle of a plan for JetBlue to acquire Spirit. Need support? Former Spirit Airlines CEO Ben Baldanza provides his outlook on the travel industry amid pilot shortages and outdated tech. (Photo by Robert [+] Nickelsberg). The US Department of Justice (DOJ) is expected to issue its decision on the proposed $3.8 billion merger in early March.. The merger will be interesting to watch, both to see how it goes and whether it improves the overall travel experience for everyone involved. JetBlue carries more than 35 million customers a year to 95 cities in the U.S.,Caribbean, andLatin Americawith an average of 900 daily flights. The fifth largest airline in the United Fourth quarter financial reports continue to roll in. JetBlue Airways may begin offering routes to Hawaii as part of a proposed $3.8 billion merger with Spirit Airlines. First, JetBlue has been focused on organic growth. There is no definitive answer to this question as the ownership structure of the two airlines is complex and ever-changing. TWU represents 6,800 flight JetBlue flight attendants and 250 Spirit dispatchers: AFA represents about 5,600 Spirit flight attendants. Third, JetBlue has been able to maintain its brand identity as a low-cost carrier. What Will Happen to the Old Kansas City Airport Terminals? The carriers combined gates at the notoriously gate-tight airport would allow for better facility utilization, and the potential addition of flights to the islands popular with leisure travelers. Please note that this link will open an external page which might not meet reasonable accessibility guidelines. The airline has been profitable for the past 12 years, has grown rapidly, and has consistently ranked high in , How To Use Polymailers For First Class Packages. BIDEN ADMIN. It is against the APC Forum Rules to advocate any labor action which is not authorized by the RLA/NMB. One of the benefits of bringing these two airlines together is we can increase the utilization of the airline, Hayes said. JetBlue Spirit Airlines will offer 77 million more seats to its customers. Date: February 21, 2023 PRESS RELEASE Washington, D.C. (February 21, 2023) The Association of Flight Attendants It has been a while since we reported on the latest progress in the JetBlue-Spirit merger. 301 Route 17 N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000, Last updated: 05:50 PM ET, Fri February 10 2023, Next Generation Sustainable Retreat Slated to Open in Saudi Arabia, Plan With a Pro, ALGV Travel Advisors Get You There, Save up to $200 on Japan with United Airlines, Stay in the Know with the Air Canada Flash, Adventure and Culture in Tahitis Islands, Bowmans Travel Brief: Wi-Fi in the Skies, Best Destinations for Travelers Who Hate People, The Top 20 Most Powerful Travel Agencies in 2022, Parents Leave Baby at Airport Check-In Counter To Catch Their Flight, 19 Caribbean All-Inclusive Resorts with the Finest Dining, 21 Amazing Vacation Ideas for Big Families. 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. The B6 code is also available on select connecting flights from JetBlues east coast network toHonoluluviaLos Angeles(LAX),San Francisco(SFO) andLas Vegas(LAS) and onward to Hawaiians neighbor island network to destinations including Maul (OGG), Kona (KOA) andLihue(LIH). In terms of long-term cooperation, it is critical that the new airline maintain a strong relationship with its competitors. 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. 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. The pair said they had met with leadership at the Justice Department's antitrust division on Wednesday. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. DOJ mulls whether to sue to block Spirit Airlines from merging with JetBlue. Beat Of Hawaii. Your email address will not be published. The airline, which will be based in both JetBlues and Spirits current locations, will operate with a combined fleet of 312 planes. The U.S. Department of Justice, together with Attorneys General in six states and the District of Columbia, is suing to stop the virtual merger of American Airlines and JetBlue will gain 9% of the market in comparison to 23% for the Big Four. However, because the combined airline will ultimately end up removing seats, Justice Department officials are not convinced that the new company wont be forced to raise prices to recoup those losses, people with knowledge of the matter said. JetBlue has been taken to court due to its Northeast Alliance partnership with American Airlines, which the regulators claimed was bad for competition and harming consumers in the region. Have Questions? JetBlue, a carrier that has stated a desire to expand its market, has made clear that it would like to create a larger, more competitive carrier. With more flexibility, greater resources, and an expanded route network, the JetBlue/Spirit combination will be better positioned to take advantage of the now largely liberalized international operating environment and better utilize U.S. rights under applicable air transport agreements, thereby increasing service alternatives for consumers, said JetBlue. JetBlue has its own set of problems as a result of the Department of Justices investigation. JetBlue () - Get Free Report and Spirit Airlines () - Get Free Report have agreed to a $3.8 billion merger deal but federal regulators have to decide whether to That's one of the key details revealed in a new Sign up to receive email alerts whenever new information is posted to the site. Although TWU has sought improvements in the collective bargaining agreement, before a merger is approved, Hayes said, Its very rare CBAs are opened and when they are its usually near the end of the contract rather than just one year. But he said that talks on a new merger contract could open as soon as the end of this year. Back in 2018, the two carriers announced an expanded (26-airport) codeshare agreement that Opinions expressed by Forbes Contributors are their own. Meanwhile, The U.S. Department of Justice is expected to rule any day now on whether to approve JetBlues $3.8 billion acquisition of Spirit. That's one of the key details revealed in a new filing with the U.S. Department of Transportation on Thursday. Furthermore, the agreement will give JetBlue greater access to additional capital, allowing it to compete more effectively with United and Delta. Guatemala, February 10, 2023. (Michael Ciaglo/Getty Images / Getty Images). Email Lindsay at lvb@skift.com, took American Airlines and JetBlue to court. Illustration: Courtesy of JetBlue Airways. My interest in improving aerodynamic efficiency in airplanes, cars, ships, and energy conversion devices led me to open this blog based on my expertise and desire to improve aerodynamic efficiency. The companies' argument is that they must merge to compete with Delta Air Lines, American Airlines, Southwest Airlines and United Airlines. He wrote, Its worth noting that once combined, JetBlue will play no role in deciding inflight Crewmember union representation and will stay neutral in this decision. Both union leaders said that if there is to be a jurisdiction battle, it is more than a year away. Now in its 86th year of continuous service, Hawaiian is Hawaiis biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on theU.S.Mainland. Last week featured some strikingly good performances, led by Singapore Airlines and Qantas. 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