Hello readers, here we are sharing a piece of exciting news with you related to a commercial deal between two major airlines. To get every detail about this news, keep reading our content.
What is the recent report saying about JetBlue and Spirit agreeing to a $3.8 billion purchase?
If American regulators approve the deal, JetBlue will pay $3.8 billion to acquire Spirit Airlines, elevating it to the fifth-largest airline in the nation. One day after Spirit Airlines’ attempt to merge with Frontier Airlines was unsuccessful, an agreement was achieved on Thursday. Since antitrust authorities are more likely to reject JetBlue’s deal, Spirit had advised its shareholders to accept a cheaper offer from Frontier.
JetBlue announced on Thursday that it would purchase Spirit for $33.50 per share in cash and a $2.50 per share prepayment that would become due after Spirit stockholders approved the deal. In addition, there is a monthly ticking fee of 10 cents from January 2023 till closing. The fleet of both the United Airlines would consist of 458 aircraft. The airlines will carry on independently till the transaction is completed.
In an email to customers, JetBlue CEO Robin Hayes said, “As you can imagine, combining two airlines takes time, and we still have a lot more work to do behind the scenes. After the close, the combined airline will operate under the JetBlue brand. All Spirit planes will eventually be transferred to JetBlue, but until the transaction closes, nothing has changed and we are still two distinct airlines. As soon as we have more information, we’ll let you know. Any tickets you have purchased on either JetBlue or Spirit are still valid, and all your points and benefits are the same.
How will Spirit-Jet Blue merger affect passengers?
If Spirit and JetBlue united, there would be a big change for its passengers. JetBlue competes more directly with traditional full-service carriers than the ultra-low-cost carrier it intends to acquire. This may lead to increased prices in some marketplaces.
Integrating the fleets will take a long time, and there may be severe difficulties along the way. For example, although JetBlue and Spirit fly comparable aircraft, they are substantially differently configured, and it will take time to upgrade Spirit’s fleet to meet JetBlue’s requirements.
The in-flight service flow differs between the two airlines, and Spirit’s crew will likely need to undergo additional training in JetBlue’s procedures.