JetBlue and Spirit , Terminate Proposed Merger.
On March 4, JetBlue and Spirit Airlines
announced that a court ruling has blocked
the companies' proposed $3.8 billion merger. .
On March 4, JetBlue and Spirit Airlines
announced that a court ruling has blocked
the companies' proposed $3.8 billion merger. .
Associated Press reports that JetBlue said the
two companies are unlikely to meet the required
closing conditions prior to a July 24 deadline.
Both companies' CEOs expressed
disappointment in canceling
the potential deal. .
We are proud of the work we
did with Spirit to lay out a vision
to challenge the status quo, but given
the hurdles to closing that remain,
we decided together that both airlines’
interests are better served by
moving forward independently, Joanna Geraghty, JetBlue CEO, via Associated Press.
We are proud of the work we
did with Spirit to lay out a vision
to challenge the status quo, but given
the hurdles to closing that remain,
we decided together that both airlines’
interests are better served by
moving forward independently, Joanna Geraghty, JetBlue CEO, via Associated Press.
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, Ted Christie, Spirit CEO, via Associated Press.
However, we remain confident
in our future as a successful
independent airline, Ted Christie, Spirit CEO, via Associated Press.
AP reports that JetBlue will be required to
pay Spirit a termination fee of $69 million.
Last year, the Justice Department moved to
block the merger, claiming it would reduce
competition and drive up costs for consumers.
In January, a Boston federal
district judge blocked the deal,
claiming it would violate antitrust laws. .
News of the cancellation drove
shares of JetBlue Airways up
over 5% in premarket trading.
At the same time, news of the
abandoned merger caused stock
in Spirit to drop over 13%