Spirit Airlines – a low-cost airline headquartered in Miramar, Fla., – announced Wednesday that its stockholders had approved a merger with JetBlue airlines, a low-cost airline based in Long Island City, N.Y.
What could this merger mean for travelers?
“This is an important step forward on our path to closing a combination that will create the most compelling national low-fare challenger to the dominant U.S. carriers,” said Ted Christie, President and CEO of Spirit Airlines in Wednesday’s announcement.
In July, JetBlue released a statement that boards from the two airlines had approved a merger agreement. JetBlue said it would acquire Spirit for around $3.8 billion.
“We are excited to deliver this compelling combination that turbocharges our strategic growth, enabling JetBlue to bring our unique blend of low fares and exceptional service to more customers, on more routes,” said JetBlue CEO Robin Hayes at the time.
Shortly after that announcement, CNBC reported that it happened just hours after Spirit broke off a possible agreement with Frontier Airlines. Along with the merger there could be “big changes” for travelers, said the outlet.
While JetBlue and Spirit are both low-cost airlines, CNBC noted that JetBlue has garnered a better reputation for its legroom, seatback screens, live television, free Wi-Fi, complimentary snacks and a business class section with lie-flat seats. Meanwhile, Spirit has become a punchline for its sparse offerings.
“Now, you have room to put the meal they don’t give you,” quipped Trevor Noah of “The Daily Show” when Spirit announced upgrades in 2019.
However, JetBlue was actually ranked lower than Spirit earlier this year by The Wall Street Journal.
With the merger, the airlines will serve a combined 77 million customers as the nation’s fifth largest carrier behind United Airlines, Delta Airlines, American Airlines and Southwest Airlines, according to JetBlue. Its fleet will include 458 aircraft.
The company “plans to bring the JetBlue Experience to all aircraft, offering JetBlue’s unique combination of low fares and award-winning service to more customers.” It also plans to expand its offerings to include more than 1,700 daily flights to more than 125 locations across 30 countries “based on December 2022 schedules.”
“Bringing our two airlines together will be a game changer, and we are confident that JetBlue will deliver opportunities for our Guests and Team Members with JetBlue’s unique blend of low fares and award-winning service,” said Christie.
In its announcement this week, Spirit said that the airlines will close the transaction by the end of 2024 following a regulatory process.
Related
Related
