United, JetBlue ask US to reject Spirit Airlines complaint over partnership

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By David Shepardson

(Reuters) -United Airlines and smaller JetBlue Airways on Thursday asked the U.S. Transportation Department to reject a complaint filed by Spirit Airlines to their proposed partnership.

United and JetBlue said the complaint’s arguments of reduced competition were a “fiction” and adding: “Blue Sky will maintain JetBlue’s independence and enhance its competitiveness, ensuring that JetBlue can continue to grow and compete as an independent carrier.”

United and JetBlue said in May their “Blue Sky” tie-up would give United access to some of JetBlue’s slots at New York’s John F. Kennedy International Airport starting in 2027 and exchange their flight timings at Newark’s airport.

The plan would also combine aspects of their loyalty programs and booking.

Budget carrier Spirit said last month the deal would mean JetBlue “will become a de facto vassal of United.”

The carriers cited JetBlue’s new non-stop service between Newark and Las Vegas, as well as expanded service between Newark and Los Angeles, in direct competition with United’s existing services on these routes.

Spirit said last month the partnership would put pressure on other small carriers to enter similar arrangements with big airlines. It did not immediately comment on Thursday’s filing.

In March 2024, JetBlue and Spirit scrapped a $3.8 billion merger agreement after a U.S. judge blocked the deal on anti-competition concerns.

JetBlue has been seeking partnerships after a federal judge blocked its Northeast Alliance with American Airlines in 2023.

JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters.

(Reporting by David Shepardson, Editing by Franklin Paul and Cynthia Osterman)