JetBlue is planning to divest all of its holdings of Spirit Airlines at New York City's LaGuardia Airport (LGA) to Frontier Airlines following the JetBlue-Spirit merger. As a part of the deal, Frontier Airlines will take control of all of Spirit's holdings at LaGuardia Airport after the merger between JetBlue and Spirit is finalised. This includes the six gates that Spirit is currently in control of at the Marine Air Terminal. The holdings also include 22 takeoff and landing slots at the airport.
The agreement is subject to approval by the Port Authority of New York and New Jersey, as well as the Federal Aviation Administration (FAA) and Department of Transportation (DOT).
Pleased at the prospect of acquiring more critical space at LaGuardia Airport, Barry Biffle, president and chief executive of Frontier Airlines, said: “We’re pleased to have reached this agreement to acquire Spirit’s slot pairs and leasehold interests at New York’s LaGuardia Airport, pending regulatory approval of the JetBlue-Spirit merger. It will enable us to significantly expand our operations at LaGuardia and deliver even more ‘Low Fares Done Right’ to consumers in the greater New York City area."
Robin Hayes, chief executive of JetBlue said: “We are committed to ensuring our combination with Spirit preserves ultra-low-cost carrier access in New York. We are pleased that this agreement with Frontier will maintain the same level of ultra-low-cost carrier service at LaGuardia Airport."
JetBlue and Spirit Airlines agreed to a $3.8 billion deal in the summer of 2022 in which JetBlue would acquire Spirit. The two airlines intend to order to create a fifth domestic airline in the United States. However, shortly after the deal was announced, the United States Department of Justice moved to block the acquisition to prevent industry consolidation. The reasoning was that the merger would eliminate competition in the ultra-low-cost market. A date for the antitrust trial is set for October 16th, 2023.