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JetBlue dumping partnership with American Airlines to salvage purchase of Spirit

Published:Wednesday | July 5, 2023 | 8:15 PM
A JetBlue Airbus A320 taxis to a gate after landing, October 26, 2016, as an American Airlines jet is seen parked at its gate at Tampa International Airport in Tampa, Florida. JetBlue on Wednesday, July 5, 2023, said it won’t appeal a judge’s ruling against its partnership with American Airlines, effectively dropping the deal in an effort to salvage its purchase of Spirit Airlines. (AP Photo/Chris O’Meara, File)

JetBlue says it will end a partnership with American Airlines in the Northeast after losing a court fight over the deal, and will instead focus on salvaging its proposed purchase of Spirit Airlines.

JetBlue Airways said Wednesday that it will not appeal a federal judge's ruling blocking the deal with American.

With its decision, JetBlue said the United States Justice Department should reconsider its opposition to a JetBlue-Spirit combination.

The Justice Department sued to block both the JetBlue-American deal and JetBlue's agreement to buy Spirit for $3.8 billion on grounds that they would hurt competition.

The Justice Department won a trial in Boston last fall over the JetBlue-American partnership.

US District Judge Leo Sorokin decided in May that the airlines must end their Northeast Alliance, or NEA, which began in 2021 because it violates US antitrust law.

“Despite our deep conviction in the procompetitive benefits of the NEA, after much consideration, JetBlue has made the difficult decision not to appeal the court's determination ... and has instead initiated the termination of the NEA, beginning a wind-down process that will take place over the coming months,” New York-based JetBlue said in a statement.

“We will now turn even more focus to our proposed combination with Spirit.”

Shortly after JetBlue's announcement, American said it respects JetBlue's decision “to focus on its other antitrust and regulatory challenges,” but it will press ahead with its own appeal in the case.

JetBlue's decision to choose a purchase of Spirit over a geographically limited deal with American grew more likely in recent weeks, as JetBlue declined to say whether it would appeal the Northeast Alliance ruling.

While the deal with American helped JetBlue grow in one region of the country, buying Spirit would let JetBlue grow quickly to nearly 10% of the nationwide air-travel market. That would make JetBlue much closer in size to United, Delta, Southwest — and American.

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