Spirit, JetBlue Terminate Merger Agreement
Spirit and JetBlue have officially terminated their merger agreement, a few months after a federal judge prevented Jetblue’s purchase after an antitrust challenge by the US Justice Department.
The move was done by “mutual agreement,” according to a statement.
“After discussing our options with our advisors and JetBlue, we concluded that current regulatory obstacles will not permit us to close this transaction in a timely fashion under the merger agreement,” said Ted Christie, Spirit’s president and Chief Executive Officer. “We are disappointed we cannot move forward with a deal that would save hundreds of millions for consumers and create a real challenger to the dominant “Big 4″ U.S. airlines. However, we remain confident in our future as a successful independent airline. We wish the JetBlue team well.”
Christie said the company had always considered continuing to operate as a standalone business.
Spirit is now “evaluating and implementing several initiatives that will enable us to bolster profitability and elevate the Guest experience,” he said.
As part of the termination, JetBlue is paying $69 million to Spirit.
Both JetBlue and Spirit have broad networks in the Caribbean region. Even during the merger talks and legal process, Spirit has continued to expand in the region, including a recently-announced expansion to San Juan.
