In March, the U.S. Department of Justice blocked a deal by JetBlue to acquire fellow U.S. carrier Spirit Airlines. The Department of Justice cited the negative implications of such an acquisition.
JetBlue felt it was an unfair judgement and believed that a merger would benefit the public. However, without the approval, they’ll struggle to get a deal over the line. Nevertheless, JetBlue is confident it can finalise its merger and complete it by 2024.
Developments by the U.S. carrier were revealed during the first quarter earning press release. It’s been a busy couple of weeks, with U.S. airlines and airlines announcing their quarterly results globally.
One of the biggest concerns with such a merger would be the effect felt on customers, other operators and much more. It’s a similar process that’s undertaken with any merger. Most recently, Qantas had their acquisition of Alliance blocked for similar concerns of the negative implications on the Australian public and potential competition.
In the first quarter, JetBlue said they’d expand towards Flordia. A decision directly taken thanks to their planned combination with Spirit that would see more than 250 daily flights at Fort-Lauderdale Hollywood International Airport. Additionally, they’ll target 200 daily flights at Orlando International Airport. While a benefit for travellers, workers will also benefit from job creation in Florida expected.
JetBlue says demand will remain robust into the second quarter, with peak periods carrying the year’s performance. However, behind-the-scenes work to takeover Spirit will also be taking place.
