JetBlue Airways enhanced (02-May-2022) its proposal to acquire Spirit Airlines for USD3.6 billion. The updated proposal includes the following changes:
- Divestiture commitment: If necessary, JetBlue would agree to divest assets of both carriers up to a material adverse effect on Spirit, with a limited carve-out for actions that would negatively impact JetBlue's Northeast Alliance (NEA) with American Airlines;
- Remedy package to address NEA and regulatory concerns: JetBlue would offer a remedy package including the divestiture of all Spirit assets in New York and Boston to prevent JetBlue from further increasing its presence at airports covered by the NEA. The package would also include gates and assets at other airports including Fort Lauderdale-Hollywood International Airport;
- Reverse break-up fee: In the event that the transaction is not finalised due to antitrust concerns, JetBlue would provide a USD200 million reverse break-up fee to be payable to Spirit Airlines.
JetBlue Airways CEO Robin Hayes stated: "By creating a national competitor to the Big Four airlines, this transaction would deliver meaningful benefits for customers, superior value for shareholders of both airlines, and new opportunities for our combined crewmembers. We have confidence that we can complete this transaction to bring more low fares and great service to more customers. A JetBlue-Spirit combination will deliver enhanced financial strength and accelerate revenue growth and profitability for JetBlue shareholders". [more - original PR] [more - original PR - II]