Spirit Airways is opposing United Airways and JetBlue Airways’ “Blue Sky” partnership, claiming the proposed pact is a “coordinated oligopoly masquerading as competitors.”
The Florida-based discounter desires the U.S. Division of Transportation to open a public docket and assessment the loyalty and joint ticket gross sales parts of the partnership, it mentioned in a regulatory submitting Tuesday. Spirit argued that what United and JetBlue suggest would quantity to the latter turning into a “de facto vassal of United.”
“This anti-competitive tie-up involving a dominant legacy provider will neutralize the aggressive good thing about an present low-fare competitor (JetBlue), will elevate fares, and can are likely to weaken different worth airways, corresponding to Spirit and others, by siphoning off prospects attracted by entry to the United loyalty program,” Spirit mentioned.
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United and JetBlue unveiled the distinctive Blue Sky partnership in Could. A alternative for JetBlue’s failed Northeast Alliance with American Airways, the tie-up focuses nearly solely on loyalty by offering members of United’s MileagePlus and JetBlue’s TrueBlue packages reciprocal advantages on both airline. It additionally consists of gross sales of each airways’ flights on both provider’s web site, each United and JetBlue adopting a number of the different’s know-how, and, in 2027, United’s return to New York’s John F. Kennedy Worldwide Airport (JFK) with slots offered by JetBlue.
“United’s international attain completely enhances JetBlue’s East Coast leisure community, and considerably expands the choices and advantages for TrueBlue members,” Joanna Geraghty, the CEO of JetBlue, mentioned when the deal was introduced.
And he or she is true — the partnership will present TrueBlue members with considerably extra utility by opening United’s total international community, which is 4 occasions the dimensions of JetBlue’s by flight numbers.
United’s MileagePlus program would additionally achieve extra relevancy in key markets, together with Boston and Florida, the place the airline is a small participant.
That joint profit would come on the expense of rivals like Spirit.
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Evaluation: Why I am enthusiastic about United and JetBlue’s new partnership, and the place there’s room to develop
The discounter had sought to merge with JetBlue solely to see the deal blocked on antitrust grounds by a federal choose. That ruling was adopted by a Chapter 11 chapter submitting by Spirit in November 2024, from which it emerged this March as a considerably smaller airline.
However, as Cranky Flier writer Brett Snyder not too long ago instructed Raymond James’ Savanthi Syth, Frontier Airways and Spirit act as primarily “spill carriers” — or those who decide up what visitors is left over from bigger, legacy or midmarket airways — resulting from their broad route map overlap and poor buyer notion.
That leaves an airline like Spirit in an unenviable aggressive place within the U.S. market, and one which might be additional pressured by a United-JetBlue partnership.
Spirit is the sixth-largest airline by seats in New England and New York, with only a 2.7% share in June, schedule information from aviation analytics agency Cirium exhibits. United is the second largest, with a 17% share, and JetBlue is third, with an almost 15% share.
The DOT will weigh Spirit’s request for a public docket and assessment of the Blue Sky partnership.
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