Will the merger bring an end to Spirit’s rock-bottom ticket prices?
JetBlue’s merger with Spirit is poised to shake up the airline industry. But what will it mean for travelers? We’re taking a closer look at this $3.8 billion deal.
The odd couple
“It’s like Nordstrom buying the Dollar Store.” That’s how one airline executive characterized the merger between JetBlue, which has built a reputation for offering a wide suite of amenities from free Wi-Fi to roomier seats, and Spirit, known for its rock-bottom fares and stingy fees.
The odd pairing became the punchline for late-night hosts. (There was this zinger from Stephen Colbert: “It’s historic. This is the first time anyone wanted Spirit airlines.”)
All jokes aside, Spirit was at the center of a fierce bidding war. Plans for a merger between discount airlines, Frontier and Spirit, were announced in February, before JetBlue jumped in with a higher offer. The deal was crucial for JetBlue, which could have become a target for a takeover without a merger partner, the Wall Street Journal reports.
When are the two airlines expected to link up?
JetBlue and Spirit will operate independently until after the deal closes. But that might not be until 2024. The merger will almost certainly face regulatory hurdles, as the Biden administration has said it will be taking a tough stance on consolidation, per CNBC.
What will the combined airline look like?
JetBlue would get significantly bigger and hopefully better. The carrier would gain access to Spirit’s Airbus fleet and its pilots, which are both in short demand. JetBlue CEO Robin Hayes argues that that growth will allow them to offer lower fares to more destinations.
He’s positioning the combined airline as a “low-fare challenger” to the top four carriers — American, Delta, Southwest, and United, which combined control about 80 percent of domestic air travel. Analysts say that may put pressure on the big four to lower their prices too.
The airline also plans to retrofit Spirit’s iconic bright yellow fleet, removing seats to give passengers a little more legroom.
Is this the end of dirt-cheap tickets?
If the deal goes through, Spirit’s ultra-low cost tickets could be a thing of the past. JetBlue will likely trim some of the airlines’ overlapping routes and remove seats from its planes. Fewer seats and fewer flights (and possibly fewer fees) probably means pricier tickets, analysts say.
But Frontier says it’s ready to fill in the gap in the discount airfare market. After the JetBlue-Spirit merger was announced, Frontier projected it would grow 30 percent next year and launched a massive sale for its customers. Frontier is offering flights as low as $19 to destinations across the U.S. Flights must be booked by 11:59 pm ET on Aug. 1. The sale applies to domestic non-stop flights on Tuesdays, Wednesdays, and Saturdays through Oct. 5.
