US carrier JetBlue Airways has agreed to divest the holdings of Spirit Airlines at New York’s LaGuardia Airport to rival Frontier as part of its planned $3.8 billion takeover of budget carrier Spirit.
The divestitures are part of JetBlue’s upfront commitments included in the merger agreement with Spirit and are conditional on the approval of the JetBlue-Spirit transaction.
Robin Hayes, chief executive at JetBlue, said: “We are committed to ensuring our combination with Spirit preserves ultra-low-cost carrier access in New York.
“We are pleased that this agreement with Frontier will maintain the same level of ultra-low-cost carrier service at LaGuardia Airport.”
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Barry Biffle, president and chief executive at Frontier Airlines, added: “We’re pleased to have reached this agreement to acquire Spirit’s slot pairs and leasehold interests at New York’s LaGuardia Airport, pending regulatory approval of the JetBlue-Spirit merger.
“It will enable us to significantly expand our operations at LaGuardia and deliver even more ‘Low Fares Done Right’ to consumers in the greater New York City area.”
Under the terms of the agreement, JetBlue has agreed to transfer to Frontier all of Spirit’s holdings at LaGuardia, principally consisting of six gates at the Marine Air Terminal and 22 take-off and landing slots.
JetBlue expects to close the transaction with Spirit in the first half of 2024.