JetBlue and Allegiant Forge a Landmark Divestiture Agreement Amplifying Ultra-Low-Cost Carrier Growth
In a strategic move that promises to reshape the aviation landscape, JetBlue Airways Corporation (Nasdaq: JBLU) and Allegiant (Nasdaq: ALGT) have entered into a definitive agreement that will see a significant transfer of holdings from Spirit Airlines, Inc. (NYSE: SAVE) to Allegiant.
JetBlue and Allegiant Forge a Landmark Divestiture Agreement Amplifying Ultra-Low-Cost Carrier Growth
In a strategic move that promises to reshape the aviation landscape, JetBlue Airways Corporation (Nasdaq: JBLU) and Allegiant (Nasdaq: ALGT) have entered into a definitive agreement that will see a significant transfer of holdings from Spirit Airlines, Inc. (NYSE: SAVE) to Allegiant. This transfer encompasses assets at Boston Logan International Airport and Newark Liberty International Airport, alongside a commitment to foster ultra-low-cost carrier growth at Fort Lauderdale-Hollywood International Airport.
A Strategic Divestiture to Promote Competition
The divestiture agreement, a part of JetBlue’s voluntary upfront commitments in its merger agreement with Spirit, is designed to remove any doubts regarding its dedication to promoting competition. Robin Hayes, CEO of JetBlue, emphasized that the merger with Spirit aims to extend JetBlue’s acclaimed service and low fares to a broader demographic, thereby enhancing the vibrant ultra-low-cost carrier segment.
Allegiant to Expand Services in Key Cities
Drew Wells, Chief Revenue Officer at Allegiant, highlighted that the agreement would pave the way for expanded services in pivotal areas such as New York, Boston, and Florida. Allegiant is set to acquire all of Spirit’s holdings in Boston and Newark, which principally include two gates each in Boston and Newark, along with 43 takeoff and landing authorizations in Newark.
Facilitating Ultra-Low-Cost Carrier Growth at Fort Lauderdale
In a bid to promote ultra-low-cost carrier growth, JetBlue has consented to relinquish up to five gates at Fort Lauderdale to the Broward County Aviation Department. This move is anticipated to facilitate Allegiant’s ULCC growth at FLL, leveraging these gates.
A Step Towards a Fruitful Merger
The divestitures, subject to approval by local airport authorities and FAA/DOT, are conditioned upon the closing of the JetBlue-Spirit transaction, expected to materialize in the first half of 2024. This agreement follows JetBlue’s announcement on June 1 to divest all of Spirit’s holdings at New York’s LaGuardia Airport to Frontier, marking a series of strategic moves ahead of the merger.
AdvertisingAbout JetBlue
JetBlue, New York's Hometown Airline®, is a leading carrier in several key locations, including Boston, Fort Lauderdale-Hollywood, and Los Angeles. JetBlue is renowned for its low fares and exceptional service and connects customers to over 100 destinations globally. For more details, visit JetBlue.
About Allegiant
Las Vegas-based Allegiant, an integrated travel company with an airline at its core, has connected customers to vital experiences since 1999. Offering all-nonstop flights and industry-low average fares, Allegiant has been a beacon of affordable travel. Learn more at Allegiant.
