JetBlue, Frontier agree on divestiture at LaGuardia in connection with planned Spirit merger

JetBlue Airways Corp. (JBLU) and Frontier Group Holdings Inc. (ULCC) said late Thursday that they have reached an agreement in which JetBlue will divest all of the holdings of Spirit Airlines Inc. (SAVE) at New York's LaGuardia airport to Frontier in connection with JetBlue's planned merger with Spirit. JetBlue emerged victorious earlier this year for ultra-low cost Spirit after a fight with Frontier. The Justice Department has sued to block the merger, saying it would eliminate competition and saddle travelers with higher air fares The divestitures at LaGuardia are contingent to the closing of the deal and subject to other approvals, the companies said. Under the terms of the agreement, JetBlue would transfer to Frontier all of Spirit's holdings at LaGuardia, mainly its 22 takeoff and landing slots at the airport. Shares of JetBlue and Frontier edged higher in the aftermarket Thursday, after ending the regular trading day flat and up 0.5%, respectively.

-Claudia Assis

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06-01-23 1652ET

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