A Spirit Airlines jet at JFK in 2014, prior to the introduction of a new livery
In an astonishing revelation, JetBlue Airways said on Friday that it might back out of its planned Spirit Airlines after a federal judge blocked the deal.
The news concerning the $3.8 billion acquisition comes one week after the two carriers said they would appeal the decision, which stemmed from an antitrust case brought by the Department of Justice.
The New York-based carrier said in a regulatory filing made Friday that the deal could be terminated after Sunday if certain conditions weren’t met. Spirit countered with its own filing, stating that “there is no basis for terminating” the fusion.
JetBlue said that “certain conditions to closing required by the Agreement and Plan of Merger… may not be satisfied prior to the outside dates set forth in the Merger Agreement (and also informed Spirit that accordingly the Merger Agreement may be terminable on and after January 28, 2024).”
JetBlue continues to evaluate its options under the Merger Agreement. Unless and until such time as
Earlier in the month, a federal judge ruled in favor of the Justice Department and blocked the merger. In the ruling, the judge wrote that Spirit continues to play an important role in maintaining low airline fares, adding that a takeover by JetBlue would hurt travelers.
The merger agreement calls for JetBlue to pay Spirit and its shareholders a combined $470 million if regulators blocked the deal.
(Photo: Accura Media Group)
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