Live And Let's Fly: "JetBlue and Spirit Airlines will go separate ways after deciding that the obstacles of a merger were too much to overcome."
"JetBlue and Spirit released statements disagreeing with the ruling and noting that options for appeal were being explored. But recognizing the uphill battle, JetBlue and Spirit have now officially broken off their merger plan and will not pursue a union further at this time."
"Perhaps JetBlue also realized that it was vastly overpaying for Spirit Airlines? It must now pay a $69 million fee to Spirit, baked into the merger agreement, but will have to look at other avenues for growth."
Points Wire Note:
JetBlue hasn't been on the winning side of anti-trust cases lately. They recently lost their Northeast Alliance with American Airlines as well. However, its seems like a different partnership structure with American Airlines could work, so I'll be curious to see if they give that another try.
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