(TheConservativeTimes.org) – JetBlue has just announced that they would be pulling out of a deal where they originally agreed to purchase Spirit Airlines.
According to the Justice Department, Spirit Airlines would risk higher airfare if they were no longer independent. Spirit Airlines has been a popular airline for travel due to their cheap fares, although they do require extra fees for anything extra, including carry-on baggage.
Both companies tried to appeal to the judge who blocked the deal, but they later retracted their appeal and both agreed that they would not be able to complete the deal while overcoming the legal issues. As a part of the deal, JetBlue paid Spirit Airlines $69 million to end it.
Blue CEO Joanna Geraghty said, “Given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently.”
Spirit Airlines CEO, Ted Christie, spoke out and said “We are disappointed we cannot move forward with a deal,” he continued, “However, we remain confident in our future as a successful independent airline.”
Spirit Airlines has struggled for years with finances and they’ve had issues gaining traction after the pandemic, despite other airlines bouncing back. This decision to not buy out Spirit Airlines could potentially hurt Spirit and cause liquidation or bankruptcy for the airline.
With this said, JetBlue had talked about pulling out of the deal even in January when they realized that Spirit Airlines was not worth the $3.8 billion that they were going to pay for it.
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