Boston Business Journal

JetBlue CEO explains how JetBlue-Spirit merger benefits Mass.

JetBlue

For nearly 20 years, JetBlue has been proud to serve Boston. While our planes feature custom designs showcasing our love for the Boston Red Sox, Celtics and Bruins, our commitment to the city goes beyond what is painted on the outside of our planes. When other airlines abandoned Boston Logan International Airport, JetBlue expanded service, announced new low-fare routes — including London and Paris – and made the city an attractive gateway for millions of travelers

JetBlue is focused on bringing our customer-focused mindset to more markets and continuing to disrupt an industry that is sorely in need of change. Last month, a federal judge struck down the Northeast Alliance, our partnership with American Airlines that brought more choices and more competition in New York and Boston, where Delta and United Airlines have long dominated the industry. Despite this disappointing decision, JetBlue is committed to finding innovative ways to spur competition and provide value to travelers.

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JetBlue’s merger with Spirit Airlines is the best chance to do that.

We are two small disruptors coming together to reshape the travel industry. By merging with Spirit, JetBlue can better challenge the entrenched “Big 4” airlines that control 80% of the market and charge high prices, offer its award-winning product in more cities nationwide, and save customers billions of dollars in airfares. Unfortunately, the U.S. Department of Justice has also announced a lawsuit against that merger, once again targeting a small disruptor looking to shake up the industry and challenge the status quo. 

Even as the fifth-largest carrier, a combined JetBlue and Spirit will have only about 9% market share, compared to about 20% on average for each of the four largest airlines. And though Spirit will be part of JetBlue, customers will still have a range of options when they fly, including those with ultra-low cost carriers. We are carrying through on our unprecedented upfront commitment to divest Spirit’s holdings in cities where JetBlue and Spirit have significant overlap, including Boston. As a result, Bostonians will still have access to ultra-low cost options and other carriers will be able to better compete.

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