New York-based JetBlue will soon be making its March 2023 prepayment to low-cost carrier Spirit Airlines' stockholders, as JetBlue will be paying $0.10 per Spirit share on March 27th. An additional prepayment will be made a few days later on March 31st, and these two payments are part of the merger between JetBlue and Spirit Airlines.

If you've been missing all the merger drama, here's a quick recap. JetBlue offered to buy Spirit Airlines in February 2022 after the low-cost carrier announced an initially planned merger with Frontier Airlines. The initial plans with Frontier Airlines got even muddier in May when the Department of Justice filed an antitrust lawsuit against the merger.

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Photo: Jay Singh | Simple Flying

After several rounds of JetBlue and Frontier Airlines one-upping each other to Spirit Airlines, the New York-based carrier after agreeing with Spirit Airlines on a $3.8 billion purchase. However, the JetBlue-Spirit merger wasn't without turbulence. Earlier this month, the Department of Justice, the District of Columbia, and the states of New York and Massachusetts filed an antitrust lawsuit.

While the lawsuit was filed due to competition concerns, JetBlue disagreed on such issues and insisted that the merger with Spirit Airlines would instead create a national low-cost, high-quality airline competitor to the big four carriers in the US market. And with the prepayment date already scheduled for next week, JetBlue is showing no fear in progressing with the merger despite all the legal hurdles.

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Changing from the big four to the big five

With JetBlue spearheading on continuing its acquisition of Spirit Airlines, the making of the fifth-largest US carrier is defiantly well underway - but what could this mean for the aviation industry? Given all the legal issues, is it as bad as the Department of Justice paints it to seem?

According to the suits' filings, the Department of Justice claims that the merger will limit choices and drive up ticket prices for passengers across the country, especially since JetBlue is already more of an ally to the big four US carriers instead of a competitor. JetBlue also has a Northeast Alliance with American Airlines, which the Department of Justice also sued.

Although it is understandable where the Department of Justice is coming from, seeing as how transatlantic-focused JetBlue has been, from JetBlue and Spirits' perspective, creating a more significant low-cost carrier with better-combined resources could compete better with the big four carriers would merely encourage competition, not entirely steal it.

JetBlue and Spirit Airbus Aircraft at EWR on a rainy day.
Photo: Lukas Souza | Simple Flying

Bottom line

At the end of the day, the Department of Justice could be asking JetBlue to sacrifice its Northeast Alliance with American Airlines before allowing the merger to happen. But seeing as how the New York-based carrier has been fighting the legal block, compromising might not be a choice it wishes to make.

But should the merger eventually bear fruit after all these legal issues are hopefully solved, JetBlue and Spirit Airlines will have an estimated 9% market share, which would still be much smaller than the big four US carriers.

What do you think of JetBlue continuing to advance with the merger? Tell us in the comments below.

  • JetBlue Airways Airbus A321-200
    JetBlue
    IATA/ICAO Code:
    B6/JBA
    Hub(s):
    Boston Logan International Airport, Los Angeles International Airport, New York JFK Airport, Orlando International Airport
    Year Founded:
    2000
    CEO:
    Robin Hayes
    Country:
    United States