SPIRIT FILES PETITION AGAINST “BLUE SKY” PARTNERSHIP CITING COMPETITION CONCERNS
July 7, 2025
On June 24, 2025, Spirit Airlines filed a complaint with the U.S. Department of Transportation requesting that the regulatory review period of the joint-venture agreement between JetBlue and United be extended for an additional 60 days. The two U.S. airlines announced the Blue Sky partnership last month which provides, among other things, United with access to slots at John F. Kennedy International Airport (“JFK”) beginning in early 2027 at which time United plans to offer up to seven daily round-trip flights out of JFK. Since the Department is authorized to investigate complaints by air carriers to determine whether another air carrier is engaging in unfair competition, Spirit requested an extended review period so that DOT can thoroughly investigate whether the JetBlue/United partnership raises antitrust concerns. Specifically, Spirit worries that JetBlue and United will no longer be incentivized to aggressively compete within overlapping markets such as Boston and New York but rather that the partners will divert traffic from low-cost carriers like Spirit, Frontier, and Allegiant. In other words, Spirit makes the case on behalf of other low-cost carriers that United, through this partnership with JetBlue, seeks to drive them out of business and further consolidate the U.S. airline market. Like the failed Northeast Alliance between American and JetBlue, Spirit’s complaint also raises concerns that if DOT does not extend the regulatory review period and thoroughly scrutinize the partnership, JetBlue and United will be permitted to dominate the Northeast market in short order. According to Spirit, doing so will further entrench United and neutralize existing competition in the Northeast market from JetBlue, especially since the Blue Sky partnership affords United with coveted slot access at JFK. United will likely retort that Spirit, emerging from its recent bankruptcy proceeding, is merely expressing pent-up frustration over the fact that the Biden administration blocked its merger with JetBlue. No matter Spirit’s motives, the complaint could delay Blue Sky implementation which the parties planned to roll out later this year.
This Aviation Blog is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202.659.6665 or dderco@eckertseamans.com, Jay Julien at 202.659.6648 or jjulien@eckertseamans.com; or Tyler Myers at 202.659.6642 or trmyers@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
Share This Post
Authors
