Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

JetBlue says it will end passenger-sharing agreement with American Airlines to focus on buying Spirit

by July 7, 2023
July 7, 2023
JetBlue says it will end passenger-sharing agreement with American Airlines to focus on buying Spirit

JetBlue Airways said Wednesday that it will end its partnership in the northeastern U.S. with American Airlines after a federal judge ordered the carriers to end the agreement, as the New York airline focuses on its acquisition of Spirit Airlines instead.

American said in June that it would challenge the ruling against the JetBlue partnership — called the Northeast Alliance, or NEA — but New York-based JetBlue said Wednesday it would not appeal the decision. That ruling was the result of a 2021 lawsuit brought by the Justice Department, six states and the District of Columbia to block the alliance, calling it anticompetitive.

“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 that the NEA cannot continue as currently crafted,” JetBlue said in a statement.

JetBlue said it has started terminating the agreement, “a wind down process that will take place over the coming months.” JetBlue said it will “now turn even more focus to our proposed combination with Spirit.”

JetBlue’s deal to buy Spirit came together after JetBlue and American launched the Northeast partnership. The NEA, approved during the last days of the Trump administration, allows the two carriers to share passengers and revenue and to coordinate schedules. American and JetBlue said they needed the deal to better compete against big carriers such as United and Delta in congested airports in the New York area and in Boston.

But a federal judge ruled in May that that partnership was anticompetitive, ordering the two airlines to undo the alliance.

American Airlines said Wednesday that it will still appeal the ruling.

“JetBlue has been a great partner, and we will continue to work with them to ensure our mutual customers can travel seamlessly without disruption to their travel plans,” American said in a statement on its website.

A spokesman for the airline did not immediately say how American could salvage the deal if it wins an appeal, if JetBlue plans to begin unwinding it.

More from CNBC

Dow falls 500 points as Thursday’s sell-off on rate fears accelerates Private sector companies added 497,000 jobs in June, more than double expectations, ADP says Mark Zuckerberg’s Twitter rival passed 30 million signups overnight — here’s how to use Meta Threads

“We, of course, respect JetBlue’s decision to focus on its other antitrust and regulatory challenges.” JetBlue said in a securities filing that it informed American on June 29 that it was terminating the partnership because of the judge’s ruling. JetBlue said the termination will take effect July 29.

JetBlue won the deal to acquire Spirit in July 2022 after a bidding war with low-cost rival Frontier Airlines. JetBlue has argued it needs Spirit in order to grow and better compete against larger airlines that dominate domestic air travel. The combined carrier would become the country’s fifth-largest.

The purchase of Spirit would give JetBlue access to more aircraft at a time when manufacturers are struggling to keep up with demand. It would also gain access to hundreds of pilots, which are also in short supply.

From the start that deal has faced a high hurdle to win approval from the Biden administration, which has vowed to challenge deals it finds harm competition.

The Justice Department sued to block the deal in March. “JetBlue’s plan would eliminate the unique competition that Spirit provides — and about half of all ultra-low-cost airline seats in the industry — and leave tens of millions of travelers to face higher fares and fewer options,” it said in the suit.

JetBlue shares were down more than 6% on Thursday morning, American was down 3% and Spirit shares were little changed.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Earnings, Inflation, Yield Curve & July Reset
next post
Galan Lithium

Related Posts

Forever 21 seeks rent concessions as fast-fashion brand...

June 24, 2024

Warren Buffett gives away another $5.3 billion, says...

June 28, 2024

Disneyland characters and cast members attempt to unionize

April 19, 2024

Summer travel season off to rough start amid...

June 29, 2023

New Hampshire city gears up to quadruple its...

December 18, 2023

Why some major artists are suddenly canceling shows,...

June 2, 2024

Tesla releases refreshed Model 3 with longer driving...

September 7, 2023

Airbnb bans indoor security cameras for properties listed...

March 12, 2024

How a $5 million fix turned Paramount Pictures’...

March 5, 2025

Disney CEO Bob Iger vanquishes billionaire foe Nelson...

April 4, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • How to Use Relative Strength in a Volatile Market

    • The S&P 500 Snapped Back Hard: Now What?

    • SMCI Stock Rebounds: Why Its SCTR Score is Screaming for Attention

    • SAGA Metals Appoints Vernon Shein, Former Exploration Manager at B2Gold, to its Board of Advisors

    • AMERICAN SALARS ADDS LITHIUM BRINE EXPERT DR. MARK KING AS A TECHNCIAL ADVISOR AND QUALIFIED PERSON

    • Heliostar Drills 56.6 Metres Grading 2.88 g/t Oxide Gold from 68 Metres at the La Colorada Mine, Sonora, Mexico

    Categories

    • Business (1,195)
    • Investing (2,435)
    • Politics (3,699)
    • Stocks (1,569)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved