What Will Happen to the Old Kansas City Airport Terminals? Save up to $200 on Japan with United Airlines Passengers may not be as offended as they may think. The jetBlue-Spirit merger adds competition to the airline industry that creates more power for workers, along with choice and comfort that benefits consumers. Another opportunity for JetBlue assuming it completes the merger is the expansion of its Fort Lauderdale base into a true connecting hub into the Caribbean and Latin America. Both companies are known for their low prices and their good customer service. Unions that represent workers at JetBlue Airways and Spirit Airlines are divided on the proposed merger of the two companies, with one union throwing its support behind the deal and another asking federal officials to block it. Despite the fact that the merger is finally official, JetBlue and Spirit Airlines are still working on a deal. Domestic leisure air travel has almost returned to pre-pandemic levels. The merger with Frontier and Spirit will always make more sense so long as the NEA is in place and throwing more cash at the deal wont sway Spirits board. It took American Airlines and JetBlue to court in response to the alliance between the two carriers in the northeast. If you fly on a budget airline, you may find it more difficult to find tickets within your preferred price range. In terms of long-term cooperation, it is critical that the new airline maintain a strong relationship with its competitors. Eric Bowman, Best Destinations for Travelers Who Hate People JetBlue and Spirit make their final public push for a merger before a DOJ decision on whether to sue to block the deal. Those were picked amid DOJ concerns that JetBlues Northeast Alliance with American Airlines reduces competition and consumer choice, said JetBlue Senior Vice President of Government Affairs Robert Land. A deal must go through a rigorous antitrust review in order to be approved, and there may be regulatory resistance. 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. American Airlines acquired the airline in February 2006 for a total of $3 billion, making it the third largest airline in the United States. For customer inquiries, please visit the Contact Us page for information and a list of Frequently Asked Questions. AFA Supports jetBlue-Spirit Merger! 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. Icelandair Earn TrueBlue points on Icelandair flights. The Justice Department has a little more than a week to make a final call. DOJ mulls whether to sue to block Spirit Airlines from merging with JetBlue. It has been a while since we reported on the latest progress in the JetBlue-Spirit merger. There are a number of reasons why JetBlue has not merged or acquired another airline. Last week, the CEO of Spirit, Ted Christie, said a decision on the merger is expected to be made in the next 30 days or so.. Third, JetBlue has been able to maintain its brand identity as a low-cost carrier. The deal, announced on Thursday, has nothing to do with the collapse of Spirits proposed merger with Frontier Airlines. Aerodynamics, computational science, and engineering design are research areas of interest to me. In a letter on Thursday, the Transport Workers Union, which represents 6,800 JetBlue flight attendants, asked JetBlue has offered to divest all of Spirits assets in Boston and New York, as well as a number of its gates in Fort Lauderdale, in exchange for approval of the airlines merger. The cookies is used to store the user consent for the cookies in the category "Necessary". 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. Companies have pitted workers against each other; we will do everything in our power for that not to happen.. United Airlines, Stay in the Know with the Air Canada Flash These cookies will be stored in your browser only with your consent. It is irrelevant whether the union itself has anything to do with the action. NEW YORK - JetBlue (NASDAQ:JBLU) today announced it has expanded its existing partnership with Hawaiian Airlines through a bilateral codeshare agreement. JetBlue Airways Corp. and Spirit Airlines, Inc. are reportedly making a last-minute push for a merger ahead of a decision from the Justice Department on whether to Besides being a philanthropist, he is a businessperson. During the filing with DOT, JetBlue said that combining its terminal space with Spirits at Los Angeles International Airport (LAX) would allow the carriers to expand operations there, including launching flights to Hawaii, which would provide more choices to consumers. San Francisco. JetBlue also outlined 15 other international markets where connections would be competitive with existing flight options. Hawaiian has cemented this signature service as the gold standard in leisure air travel and the only authentic Hawai'i experience. The cheapest route from New York to Orlando currently costs as little as $126 on Spirit and JetBlue. Christie, the CEO of Spirit, said fares on some routes could increase if the merger is OKed, but said merged companies would have decreased fare costs overall. gallery icon The U.S. airline industry is already highly consolidated among a few key players. Tomato shortage in UK has politicians looking for answers, Chicago voters resoundingly rejected Mayor Lori Lightfoot's reelection bid, China is buying more U.S. farmland, and some say that's a national security threat. That would leave the decision in the hands of his deputy, Doha Mekki, and practically it would have little impact. It is expected that the transaction will be completed in the first half of 2024 as a result of the regulatory process. The companies argument before DOJ is essentially that they must merge in order to compete with the big four legacy airlines, Delta Air Lines, American Airlines, Southwest Airlines and United Airlines. Qatar Airways Earn TrueBlue points on Qatar Airways flights. February 10, 2023. JetBlue Airways was founded in 1997 for $20 million in startup capital from him. The jetBlue-Spirit merger adds competition to the airline industry that creates more power for workers, along with choice and comfort that benefits consumers. Professors from Dartmouth University tell me that the most significant winners are people who live near large hubs. Terms apply. Youll see. Eventually, the board of directors at both JetBlue and Spirit settled for a $3.8 billion all-cash deal in July 2022, with a $2.5 per share prepayment to Spirit Airlines shareholders, as well as a ticking fee payment of $0.10 per share per month between January 2023 and the finalization of the merger. It is difficult to argue that there is a lower cost to flying than for many people. Terms apply. Consumers benefit from the merger as well. The Justice Department has not been entirely enthusiastic about such significant airline industry mergers in the past. Hotel & Resort, 21 Amazing Vacation Ideas for Big Families JetBlue and Spirit Airlines have announced a separation. She said, This deal is not just potentially good for flight attendants: its good for setting a higher standard for all aviation jobs. Enjoy Palladium Hotel Group's Cancun Resorts, TBO Empowers Travel Advisors to Control Commission, Explore the Greek Islands on a Fam Trip With Exodus Travels, For more information on This website uses cookies to improve your experience while you navigate through the website. JetBlue flight attendants are in the middle of a plan for JetBlue to acquire Spirit. Samuelsen said Tuesday that unions dont have to agree on everything to get along. Not after the massive order for Airbus and Boeing planes it announced last week. Spirit Airlines and JetBlue are merging in a deal valued at approximately $3.8 billion, marking the end of a months-long bidding war and the end of Spirits attempt to acquire Frontier Airlines. This isnt Pepsi and Coke merging, JetBlue President and Chief Operating Officer Joanna Geraghty told Reuters on Wednesday. Analytical cookies are used to understand how visitors interact with the website. Terms apply. The airline has been successful in growing its routes and passenger numbers without acquiring another airline. I think hundreds of millions of dollars will be saved.. A combination of Spirit and JetBlue would create a highly profitable airline with a solid operational track record, as well as the largest and most extensive route network of any airline in the United States and around the world. If the merger proceeds, it would also allow for the expansion of JetBlues Fort Lauderdale, Florida operations allowing the Sunshine State airport to serve as a critical hub for connections to the Caribbean and Latin America, Airline Weekly said. JetBlue Airways and Spirit Airlines are making a last-minute pitch for their merger, arguing that combining the two airlines will force fares down across the industry but they still need to convince a skeptical Justice Department, which is preparing to sue to block the deal. Sara Nelson, On the growth opportunity for a combined JetBlue-Spirit, potential Hawaii flights would be possible with more facilities at Los Angeles International Airport, or LAX, JetBlue told the DOT. Please, use first name and last initial only. JetBlue has its own set of problems as a result of the Department of Justices investigation. If ultimately approved by government regulators, the merger would result in the countrys fifth-largest airline. 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. Spirit and JetBlue ranked 7th and 9th, respectively, in a nine company field. Photo: Spirit Airlines, Airbus A320neo. In a showing of good faith by Spirit management, we achieved a tentative agreement for a short-term contract that provides immediate double digit raises and scheduling improvements, as well as continued contractual raises during the merger process, she wrote. These markets include multiple U.S. gateways, including Charlotte, Denver, Detroit, and San Francisco, to Caribbean and Latin American destinations like Guatemala City, Nassau, Quito, and San Pedro Sula. Fourth quarter financial reports continue to roll in. We urge In the earnings space, Air Canada still cant seem to figure out how to Reliving bad memories is never pleasant. DOJ has a little more than a week to make a final call on whether to sue. February 10, 2023. Following the merger between JetBlue and Spirit Airlines, there should be a few improvements. FAQ - New Privacy Policy. JetBlue is placing its B6 code on nonstop flights operated by Hawaiian Airlines betweenNew York(JFK) andHonolulu(HNL). TWU represents 6,800 flight JetBlue flight attendants and 250 Spirit dispatchers: AFA represents about 5,600 Spirit flight attendants. JetBlue has hinted that it may launch new services to Hawaii if its proposed merger with Spirit Airlines gets approved by regulators. Your email address will not be published. Christie acknowledged that fares on some routes could increase if the merger is approved. People are allowed to disagree on issues, he said. 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