If regulators approve, then by 2024, the ultra low-cost Spirit brand will disappear to be subsumed by JetBlue, which operates a hybrid model and which is now flying to the UK.
Until last year, JetBlue confined itself to the Americas and the Caribbean, but then launched flights to Heathrow and Boston. Its UK-born chief executive, Robin Hayes, a former British Airways director, has ambitions on both side of the Atlantic and Spirit’s purchase will further those.
Firstly, the merger means JetBlue gains critical mass; the combined JetBlue/Spirit airline will carry 77 million passengers (compared to BA’s 44.6 million in 2019), serving more than 125 destinations in north, south and central America and the Caribbean – and now with the Heathrow and Gatwick routes to New York and Boston.
This will make it the fifth-biggest carrier in the US, behind American Airlines, Delta, United and budget airline Southwest Airlines, which together control 80% of the market in the US.
The deal also bolster’s JetBlue’s key airports, particularly on the east coast of the US. JetBlue has hubs at JFK, Boston, Orlando, Los Angeles, San Juan (Puerto Rico) and Fort Lauderdale - the latter being where Spirit is based. Spirit also operates bases at Orlando, Miami, Houston, Detroit, Dallas/Fort Worth, Chicago, Atlanta and Atlantic City.
Several of these destinations - Dallas, Houston, Chicago, Detroit, Atlanta, and Miami - are hub airports for the big four US carriers, so that will increase competition and should drive down fares.
Joining up the dots with New York and Boston will provide more connecting opportunities for UK-originating passengers, while the renewed focus on Florida could see some direct links with the UK established. JetBlue has said it will “absolutely” add new routes following the merger.
The tools to do the job are already there or on order – the combined airline will have a fleet of 458 and an order book of more than 300 Airbus aircraft. However, the total is still a long way from its nearest rival Southwest, which has more than 730 aircraft. Southwest, unlike JetBlue, is sticking firmly to its mainly domestic roots and has no transatlantic ambitions.
The regulators must first give the go-head, but JetBlue estimates that even as the fifth-largest carrier, it and Spirit would have only 9% market share, compared to 13% for Southwest and 23% for American Airlines. Approval is expected by 2024 and until then, the two brands will continue to operate separately.
If approval is given, the deal will be good news for agents. JetBlue is keen to deal with them while it establishes itself in the UK and the merger will bring an extended network of destinations from which to book.
Few if any agents would suggest Spirit Airlines as a carrier for clients wishing to connect in the US – although it does have an agent portal – but the combined JetBlue/Spirit Airlines will mean a consistent, quality brand that they can book with confidence.
