Jetblue to sell Spirit Airlines' LaGuardia holdings

Jetblue to sell Spirit Airlines' LaGuardia holdings

On Thursday, JetBlue Airways Corp said it plans to sell Spirit Airlines Inc.'s holdings at New York's LaGuardia Airport if the company's plan to merge is completed.

Spirit's holdings, which JetBlue intends to sell to Frontier Group Holdings Inc., include six gates at the Marine Air Terminal and 22 takeoff and landing spots.

The airline said the agreement with Frontier would help maintain the same level of low-cost carrier service at LaGuardia Airport.

These divestitures are part of JetBlue's engagements included in the deal with Spirit. The deal is expected to close in the first half of 2024.

The U.S. Transportation Department in March denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Justice Department's antitrust lawsuit in the same month seeking to block the deal.

The Justice Department had asked the government to stop the deal by saying it would eliminate competition, result in higher ticket prices, reduce passenger capacity, and reduce consumer choices.