This week, JetBlue filed a request to the US Department of Transportation (DOT) to transfer Spirit Airlines’ routes as soon as their merger is approved (if it is approved). The airline lengthy discussed how the combination of both companies would benefit consumers and competition and cited two airports where there would be plenty of benefits, Fort Lauderdale International (FLL) and Los Angeles International Airport (LAX).
How would a JetBlue-Spirit merger benefit LAX?
JetBlue said that travelers flying to and from existing focus cities, such as Los Angeles and Fort Lauderdale, will benefit from the merger with Spirit. Since both carriers currently face unique growth restraints at these hubs, the merger will unlock new benefits.
At Los Angeles, JetBlue and Spirit both operate out of Terminal 5, which is space-constrained. Due to current gate allocations and time-channel restrictions, JetBlue and Spirit can only handle a certain number of flights without the possibility to grow beyond that. Of the 4,508 weekly flights departing from Los Angeles, both Spirit and JetBlue operate around 5% of all departures each. The US’ top four (Delta, American, United, and Southwest) operate jointly 52% of all departures, with SkyWest Airlines (a company that operates flights for United, Delta, American, and Alaska) operating an additional 15%. JetBlue said,
“By combining JetBlue and Spirit’s gates in Terminal 5, a larger JetBlue will have more real estate to better optimize and expand the number of flights and destinations at LAX beyond what the two carriers do separately.”
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Looking at Hawaii
A larger JetBlue would be able to keep its transcontinental offering from LAX but also operate intra-West and international leisure schedules from this airport, the company said. For instance, JetBlue offered Hawaii as an additional leisure service, although this destination had been hinted at in the past.
JetBlue did not point out more new routes it could launch from Los Angeles. The carrier added that all additional services would be possible because acquiring Spirit would strengthen JetBlue’s competitive impact for Los Angeles travelers.
A quick update on their merger
This week, Spirit Airlines said it is waiting on antitrust regulators to make a decision on its merger with JetBlue. According to the company’s President and Chief Executive Officer (CEO), Ted Christie, the final decision would come within the next 30 days, and both carriers are currently waiting to see whether the Department of Justice filed suit to block a deal or allows them to proceed.
Last year, JetBlue proposed a US$3.8 billion merger that would create the fifth-largest airline in the United States. JetBlue persuaded Spirit shareholders to back the deal the ultra-low-cost company had with rival Frontier Airlines instead.
According to JetBlue, the combination with Spirit would see over 125 destinations across the United States, Latin America, the Caribbean, and Europe, with more than 1,700 daily flights and a combined fleet of 458 aircraft. Both companies also have an order book of over 300 Airbus aircraft and would be able to provide more low fares for more people in more places, it said.
On Friday, POLITICO reported the Biden administration, through the Justice Department, is likely to sue to block the merger.
Do you think a JetBlue-Spirit merger would benefit Los Angeles International? Let us know in the comments below.