Skift Take
Both airlines came to the conclusion that it would be unlikely for them to meet the requirements of the merger by July 24.
JetBlue announced Monday it reached an agreement with Spirit Airlines to terminate its merger.
Both airlines said they thought it was unlikely that all the conditions for the merger would be approved by July 24.
“With the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low,” Geraghty said in a message to crewmembers Monday morning. “Additionally, the lingering uncertainty is distracting and taking our resources away from more pressing priorities — particularly our work to return to profitability and reinvigorate our brand and culture.”
As part of the merger agreement, JetBlue will pay Spirit $69 million in cash by March 5, according to a regulatory filing. Spirit shareholders received $425 million in prepayments while the merger was still in effect.
“We are proud of the work we did with Spirit to lay out a vision to challenge the status quo,