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JetBlue and Spirit Push for Expedited Appeal to Overturn Merger Block

 |  January 30, 2024

JetBlue Airways and Spirit Airlines are actively pursuing an expedited appeal to reverse a lower court ruling that has halted their planned $3.8 billion merger. In a joint court filing, the airlines emphasized the need to overturn the decision, asserting that it fails to acknowledge the benefits the merger would bring to the majority of the flying public.

The airlines collectively petitioned the First U.S. Circuit Court of Appeals, urging swift action due to the looming outside closing date of July 24 specified in the merger agreement. They argue that if the appeal is not expedited, the court might miss the opportunity to review the decision, leading to the termination of the merger agreement.

The joint statement expressed concern that if the merger agreement is terminated before the court’s decision, the potential advantages derived from the deal would be lost. Both JetBlue and Spirit Airlines stressed the importance of preserving the benefits they believe the merger would bring to their passengers.

Related: Lawsuit Results In Termination Of JetBlue And American Airlines Partnership

However, the situation took a turn on Friday when JetBlue introduced uncertainty about the merger deal, suggesting that it might struggle to fulfill certain conditions outlined in the agreement due to unspecified reasons. Despite this development, JetBlue affirmed its commitment to evaluating options within the agreement and pledged to abide by its merger obligations if the agreement remains intact.

In response to JetBlue’s statements, Spirit Airlines promptly asserted that there was no valid basis for terminating the merger agreement. Spirit Airlines expressed its continued commitment to honoring its obligations and indicated its expectation that JetBlue would do the same.

Source: Reuters