Analysts expect Spirit shareholders to vote to approve the merger. Executives at the two airlines said they hope to conclude the regulatory process and close the deal in the first half of 2024.
Winning shareholder approval could be the easy part for airline executives, who will need to persuade the Biden administration and some lawmakers the deal is a win for consumers. The Justice Department has taken an aggressive role in fighting deals it says will reduce competition and harm consumers, including an alliance playing out in a Boston courtroom that also involves JetBlue.
Under the terms of the deal, JetBlue would pay Spirit shareholders $33.50 per share in cash. The deal also includes a prepayment of $2.50 once shareholders approve the transaction, plus a “ticking fee” of 10 cents per month starting in January 2023.The proposed merger comes as there are fewer players in the airline industry than years ago, the result of mergers and bankruptcies.
The carriers contend the partnership enables them to better compete with larger players, such as Delta Air Lines and United Airlines, which operate more flights in those markets. But the Justice Department argues the arrangement reduces competition and could lead to higher prices in one of nation’s busiest air corridors. The trial, which began late last month, is taking place in U.S. District Court in Massachusetts.
JetBlue was the fifth-busiest carrier before the pandemic, with 43 million passengers in 2019, while Spirit ranked eighth, according to Transportation Department data. Frontier was the ninth-largest airline. Frontier and Spirit combinedIf regulators prevent JetBlue and Spirit from merging, their agreement indicates JetBlue would have to pay a $70 million fee to Spirit, along with another $400 million in fees to shareholders.
Stop the monopolies! Enforce antitrust laws!
Would it be called Blue Spirit?
This is a better option than Jetblue joining American Airlines...
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WashTimes - 🏆 235. / 63 Read more »