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

Money Control Place

Business

JetBlue and Spirit Airlines terminate $3.8 billion merger

by March 5, 2024
March 5, 2024
JetBlue and Spirit Airlines terminate $3.8 billion merger

JetBlue Airways and Spirit Airlines on Monday said they were terminating their merger agreement weeks after losing a federal antitrust lawsuit that challenged the deal.

A federal judge blocked the attempted merger in January after the Justice Department sued to bar the deal last year alleging the acquisition would stifle competition in the airline industry and eliminate Spirit as a discount alternative for price-conscious travelers.

JetBlue and Spirit appealed the judge’s decision a couple of days later, but JetBlue noted the appeal was required under the terms of the merger agreement.

Spirit shares tumbled 17% in premarket trading, while shares of JetBlue were up roughly 4%.

“It was a bold and courageous plan intended to shake up the industry status quo, and we were right to compete with Frontier and go for an opportunity that would have supercharged our growth and provided more opportunities for crewmembers,” JetBlue CEO Joanna Geraghty said in a note to staff Monday.

“However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low.”

JetBlue’s prospective purchase of Spirit would have been a buoy for the struggling discounter airline, which is facing the grounding of dozens of its Airbus planes for inspections stemming from a Pratt & Whitney engine defect. Spirit expects compensation from the engine maker as a result of the flaw.

With the deal off the table, Spirit must confront its financial problems alone, something its leaders say it is equipped to do.

The company said it was working to refinance its debt, and last month said it was on a path back to profitability thanks to better-than-expected demand. It projected revenue for the first quarter above analysts’ expectations.

“Throughout the transaction process, given the regulatory uncertainty, we have always considered the possibility of continuing to operate as a standalone business and have been evaluating and implementing several initiatives that will enable us to bolster profitability and elevate the Guest experience,” Spirit CEO Ted Christie said in a release.

He said Spirit shareholders received $425 million in prepayments from JetBlue during the agreement, and that JetBlue will pay Spirit $69 million related to the agreement’s termination.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Bitcoin approaches new all-time high after surpassing $65,000
next post
Appia Announces Maiden Rare Earth Mineral Resource Estimate of 6.6 Million Tonnes Indicated Grading 2,513 ppm TREO and 46.2 Million Tonnes Inferred grading 2,888 ppm TREO at the PCH Ionic Adsorption Clay Project in Goias, Brazil

Related Posts

Overstock.com will relaunch Bed Bath & Beyond after...

June 29, 2023

Elon Musk says backlash against his DOGE government...

April 2, 2025

Airbnb bans indoor security cameras for properties listed...

March 12, 2024

Home buyers to be spared automatic broker commissions...

March 16, 2024

Frontier CEO urges crackdown on ‘rampant abuse’ of...

May 24, 2024

Netflix shares soar as company reports surging revenue,...

January 23, 2025

Visa and MasterCard settle long-running antitrust suit over...

March 28, 2024

This small Missouri city could cash in on...

April 8, 2024

Hyundai, Kia recall 91,000 US vehicles over fire...

August 4, 2023

Labor movements are gaining momentum in the U.S....

October 1, 2023

    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

    • 3 S&P 500 Charts That Point to the Next Big Move

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • Prospectus

    • Critical Metals Secures US$120 Million Loan LOI for Tanbreez Rare Earths Project

    • Mali Court Seizes Control of Barrick Gold Mine Amid Escalating Dispute

    • Galan Lithium Limited: A$20 million Placement to Strategic Partner

    Categories

    • Business (1,256)
    • Investing (2,578)
    • Politics (3,699)
    • Stocks (1,667)
    • 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