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JetBlue to Grant Northeast Low-Cost Carrier Holdings to Allegiant

Ultra-Low-Cost-Carrier Allegiant Airlines may have a bigger presence in Boston and Greater New York if the merger between JetBlue and Spirit Airlines is approved.
JetBlue made the case for their merger with Spirit Airlines based on low prices and better competition. One of the beneficiaries towards both could be Allegiant Air.


The New York-based carrier announced a plan to divest “all of the holdings of Spirit Airlines at Boston Logan International Airport and Newark Liberty International Airport” to the ultra-low-cost-carrier.


Divesture to Allegiant Part of Voluntarily Package to Move Merger Forward

Although the merger between JetBlue and Spirit is being challenged in courts, the two airlines are working together to move their agreement forward. One step is to reduce some of their mutual holdings at the nation’s largest airports.


Under their current plan, the airlines announced they will turn over their holdings at Boston Logan (BOS) and Newark Liberty (EWR) to Allegiant Air. This includes two gates at each airport, along with 43 takeoff and landing slots at the greater New York airport. It is unknown how many slots Allegiant would gain in Boston.


In addition, JetBlue will also surrender some of their assets at Fort Lauderdale-Hollywood International Airport (FLL). The carrier will give back up to five gates and other ground facilities from Spirit to the Broward County Aviation Department. In turn, those assets will be dedicated to a future ultra-low-cost-carrier at the airport. No announcement has been made about who will ultimately receive those assets.


“Merging with Spirit will allow us to bring our signature service and low fares to even more people and places across the country and beyond,” said Robin Hayes, chief executive of JetBlue, in a press release. “Our divestiture commitment, while not needed to ensure the continued growth of the vibrant ultra-low-cost carrier segment, is aimed at removing any doubt of our commitment to promoting competition.”


The announcement and ultimate divestures are subject to regulatory approval.


JetBlue’s move comes after agreeing to transfer assets at New York’s LaGuardia Airport (LGA) to ultra-low-cost-carrier Frontier Airlines. In June 2023, the airline announced they would transfer six gates and 22 takeoff and landing slots to the Denver-based airline as part of the merger process.


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