A JetBlue passenger plane in front of a Spirit Airlines plane on a taxiway at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022 (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images)
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Spirit Airlines Shareholders agreed a take over by JetBlue Airways After a six-month battle to create the country’s fifth-largest airline, a deal that now faces a major snag with federal regulators.
Declare the soul Voting results After a special shareholder meeting on Wednesday. In April, JetBlue made a $3.8 billion all-cash offer to Spirit, disrupting Spirit’s plan for a cash-and-equity deal to merge with it. Frontier Airlines.
The airlines said they expect to close the deal no later than the first half of 2024.
But they now have to convince federal regulators that this agreement won’t hurt competition or raise prices for consumers, a major obstacle in obtaining approval for the acquisition.
The Biden administration has taken a hard line against deals they claim will harm consumers. The Department of Justice is currently fighting JetBlue’s existing partnership with American Airlines In the Northeast in Boston Courthouse.
If the acquisition is approved, JetBlue plan to get rid of With the Spirit brand, known for lower airfares and orthopedic service with fees for add-ons like carry-on bags. By contrast, the New York-based carrier offers more onboard space, seat back screens, and, on some planes, business class.
“This is an important step forward on our path to closing a group that will create the strongest national low-fare competitor to the dominant US airlines,” Spirit Airlines CEO Ted Christie said in a statement. “We look forward to continuing our ongoing discussions with the regulators as we work to complete the transaction and deliver value to team members, guests and shareholders.”
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