Summary
- JetBlue CEO Robin Hayes said that JetBlue once hoped to amass Alaska Airlines.
- Hayes also testified that acquiring Spirit is crucial to compete with larger carriers and increase market share.
- The US Department of Justice opposes the merger, claiming it’ll reduce options and increase ticket prices.
JetBlue CEO Robin Hayes reportedly said that the Recent York-based airline has long expressed interest in buying one other airline to strengthen its position as a more substantial rival within the competitive US aviation landscape. In response to a report by The Points Guy, the court’s testimony revealed that before Spirit, Alaska Airlines was the initial goal for the carrier.
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Photo: GingChen | Shutterstock
Hayes reportedly testified that JetBlue never initiated discussions with Alaska Airlines and has no intentions to achieve this. He also expressed that he doesn’t foresee any more merger activities, provided that the Spirit deal receives regulatory approval.
Easy Flying has asked JetBlue for a comment.
JetBlue and Spirit merger: what’s the most recent?
In July 2022, JetBlue announced its plan to determine a with its proposed $3.8 billion acquisition of Spirit. Nonetheless, not everyone shares the identical enthusiasm for the potential JetBlue-Spirit merger.
In March 2023, the US Department of Justice filed a lawsuit to stop the merger. Attorney General Merrick Garland claimed that this merger would cut back selections and make tickets costlier for people all around the country. The legal process began last week and can determine whether the merger will have the ability to go ahead or be blocked.
Through the court proceedings on November 6, 2023, JetBlue’s chief executive testified that the airline’s proposed $3.8 billion acquisition of Spirit is an important component of his strategy to rework the airline right into a more significant competitor among the many 4 largest US air carriers.
In response to a report by Reuters, JetBlue CEO claimed that the country’s largest airlines control 80% of the domestic market and that he had long believed that
Photo: Lukas Souza | Easy Flying
The US Big 4 airlines – Delta Air Lines, American Airlines, Southwest Airlines, and United Airlines – control 67.7% of the market share combined, in accordance with the information from the US Department of Transportation (DoT) for the period between August 2022 and July 2023.
Meanwhile, JetBlue controls 5.5% of the market share, while Spirit holds just 5%, making them the sixth and seventh largest airlines within the country. Alaska Airlines, which was in JetBlue’s acquisition crosshairs, is the fifth-largest airline within the US, with a 6.4% share of the domestic market.
How would the mixture of JetBlue and Spirit look?
A successful merger would position JetBlue and Spirit because the fifth-largest airline within the US. In response to data from Planespotters.net, their combined fleet of aircraft would amount to 486, with the bulk consisting of Airbus A320s.
When it comes to their route networks, only 60 out of the 566 routes operated by JetBlue and Spirit would coincide, offering a considerably broader range of destinations.
What are your thoughts on the JetBlue and Spirit Airlines merger? Would it not have been higher for JetBlue to amass Alaska Airlines? Tell us within the comments section below.
Sources: The Points Guy, Department of Transportation, Reuters, Planespotters.net