Two Major Airlines Discuss Possible Merger—Here's How It Could Impact Future Travel
If you can't beat 'em, join 'em (or in this case, buy 'em)!
Two air service companies are in talks of settling on an official merge, forming what would make up the fifth-largest airline in the U.S.
On Thursday, the announcement that JetBlue Airways is set to buy Spirit Airlines for $3.8 billion with an all-cash offer hit the public, after the discount airline broke off its former merger agreement with Frontier Airlines just a day before.
If approved by regulators, the takeover would be the first major U.S. airline deal since 2016, when Alaska Airlines beat out JetBlue for the acquisition of Virgin America. The merge would also leave Frontier as the largest discount carrier in the country.
“Should a JetBlue-Spirit merger occur, we believe Frontier will largely inherit the keys to the low-cost kingdom in the U.S.,” JP Morgan airline analyst Jamie Baker noted, per CNBC.
JetBlue executives say the Spirit takeover would fast-track its growth by allowing access to more Airbus jetliners and pilots, helping it compete with larger carriers like American, Delta, United and Southwest, which control a vast majority of the U.S. market.
What could this mean for travelers?
Current CEO of JetBlue Robin Hayes addressed the changes in an email sent to customers, per USAToday. "As you can imagine, combining two airlines takes time and we still have a lot more work to do behind the scenes. After close, the combined airline will operate under the JetBlue brand. Eventually, all Spirit aircraft will be converted to JetBlue, but for now nothing is changing – we remain two independent airlines until the transaction closes," he wrote. "Any tickets you’ve purchased on either JetBlue or Spirit are still valid, and all your points and benefits stay exactly the same. We will keep you posted as we have additional details to share."
Additionally, frequent flyers of Spirit Airlines have become accustomed to ultra-low fares, something that will inevitably change due to JetBlue competing more directly with legacy full-service carriers and being forced to offer higher rates in most markets.
There is a long road ahead concerning the combination of company cultures and fleets in the coming years. Though the two airlines fly similar planes, they are reportedly built and customized very differently, meaning Spirit's reconfiguration to JetBlue's aircraft standards will likely be a lengthy process.
The inflight service flow on the two airlines also differs, so it is assumed that Spirit's staff will undergo updated training in order to conform to its new owners' company-wide practices.
JetBlue Airlines has been operating for over 20 years. It was founded under the name "NewAir" in 1999 by David Neeleman, a former Southwest Airlines employee.
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