Spirit Airlines Urges U.S. to Reject JetBlue-United Partnership

Skift

7 hours ago

Spirit recently emerged from bankruptcy and is hoping to block new competition. But the first Trump administration approved the original Northeast Alliance.
Spirit Airlines said that the proposed JetBlue-United partnership 'raises serious competition and public interest questions' in a complaint to the Department of Transportation filed on Tuesday.
'JetBlue, enticed by the benefit to its customers of United's far larger global network, will become a de facto vassal of United,' Spirit said in the complaint.
The partnership, known as 'Blue Sky,' was announced in May after JetBlue executives had repeatedly said they were keen to start a new alliance with a U.S. airline.
The complaint compared the JetBlue-United tie-up to the Northeast Alliance, JetBlue's partnership with American Airlines that was struck down in court on the grounds that it was anticompetitive.
The JetBlue-United partnership links the two carriers' loyalty programs, but does not go so far to coordinate schedules or pricing, a key difference from the Northeast Alliance. United will also receive access to slots at New York JFK for up to seven daily flights starting as early as 2027.
Spirit Says Blue Sky Is Like Northeast Alliance
Spirit argues that the alliance is still similar to the Northeast Alliance since JetBlue's network decisions will be impacted by 'United's wishes and a 'combined' approach to capacity management.' The first Trump administration greenlighted the Northeast Alliance in January 2021.
The ultra-low-cost carrier further argued that JetBlue would need to purchase more expensive United miles to offer the United's long-haul international routes and other routes not served by JetBlue to JetBlue's customers, driving up airfares.
Spirit also said in the complaint that since the partnership 'promises coordination on high-value corporate accounts' it would further prevent new carriers from entering New York and Boston airports.
JetBlue criticized Spirit's decision to file a complaint in a statement to Skift.
'Spirit's filing misrepresents Blue Sky and twists the facts about how JetBlue and United plan to deliver for customers,' JetBlue said. 'Blue Sky is built around the goal of offering more value and options for travelers. Through an industry standard loyalty program agreement, customers will gain more ways to earn and redeem points/miles and access loyalty benefits. Each airline will offer flights for sale on one another's websites and apps to make booking across the two airlines' complementary networks simple and easy.'
JetBlue added it is still a competitor to United.
'Blue Sky involves an industry standard interline agreement and does not include schedule coordination or revenue sharing,' the New York-based carrier said. 'JetBlue and United will remain competitors as they each will continue to publish, price, and market flights independently under their own brand and flight numbers and make independent network decisions.'
The Department of Transportation did not immediately respond to a request for comment. Spirit declined to comment on the complaint.
Spirit's Makeover
Spirit filed for Chapter 11 bankruptcy last year to restructure its debt due to years of losses after its merger with JetBlue was struck down in court. Since exiting Chapter 11 bankruptcy in March, Spirit has been trying to chart a new path to profitability as a standalone carrier.
Some of the plans Spirit previously touted included offering free Wi-Fi to customers and adding premium seating to its cabins.
The airline also appointed Sun Country executive Dave Davis to be CEO in April, shortly after Ted Christie said he would resign from the position.
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