SerpApi.Org
The defunct airline’s assets continue to be sold of piece by piece.
JetBlue Airways has won Spirit Airlines’ slots at New York’s LaGuardia Airport, after the yellow air carrier ceased operations and abandoned the high-traffic hub.
According to a U.S. Bankruptcy Court filing, JetBlue made a bid of $58.5 million for the 22 slots in New York City and is set to have a final confirmation hearing at the Bankruptcy Court of the Southern District of New York on Wednesday for approval. Frontier Airlines had also placed a bid for the slots but came slightly short, submitting $57.5 million for Spirit’s slots, but will serve as backup if offers fall through.
According to court documents, the transfer from Spirit to JetBlue will need Bankruptcy court approval, as well as Federal Aviation Administration approvals and confirmations. LaGuardia slots are scarce and highly regulated, making them strategically important for airlines seeking to expand service at the New York airport. The filing describes the slots as FAA-issued operating authorizations governing takeoffs and landings at specific times
Per a report from CNBC, JetBlue told staff that it’s now “evaluating our plans for the slots as we consider opportunities for our network strategy.” The airline added that it’s looking to move to Terminal A fully, where Spirit previously based its operation. “It’s a convenient terminal travelers love,” they said.
In a statement to Inc., JetBlue stated the spots at LGA can take up to 12 daily roundtrip flights. “We’re currently evaluating how best to utilize these slots as we consider opportunities to bring more of JetBlue’s competitive, customer-focused service to New York,” the spokesperson said.
Expansion at LGA related to the slots would start in 2027, a spokesperson added.
Airline expansions
Spirit abruptly announced it would be shutting down on May 2. The low-cost carrier could not continue operating due to the inflated cost of jet fuel and a failure to secure a $500 million federal bailout from the U.S. government.
“Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted,” said Dave Davis, Spirit’s President and Chief Executive Officer, in the company’s final message.
Before ceasing operations this year, Spirit served over 70 airports across the country, including major traffic hubs like Hartsfield-Jackson Atlanta International Airport, Chicago-O’Hare Airport, and New York’s LaGuardia Airport. At its peak, its total footprint was between 75 and 90 airport gates across its entire network.
Now the defunct company will have to finish selling its multiple assets such as 20 to 27 Airbus A320 and A321 jets, take-off and landing slots, spare engines and parts, and its Dania Beach, Florida headquarters.
Earlier this month, Spirit’s two gates in Atlanta were bought by Delta Airlines for $12 million pending final review by New York’s Southern Bankruptcy Court, according to Simply Flying. The new buyout allows Delta to serve more passengers and expand its customer base.
“Delta engaged in a competitive bidding process, as reflected in court filings. As Atlanta’s hometown carrier, Delta will continue working with the City of Atlanta to ensure its facilities are used in a way that best supports customers and sustains Hartsfield-Jackson Atlanta International Airport’s position as a leading global gateway,” a spokesperson told Inc.
This post originally appeared at inc.com.
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