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Spirit Airlines challenges JetBlue-United partnership over competition concerns

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Spirit Airlines challenges JetBlue-United partnership over competition concerns
Policy
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Spirit Airlines | Official Website

Spirit Airlines is maintaining its opposition to the 'Blue Sky' agreement between JetBlue and United Airlines, describing their response as an attempt to divert attention from the partnership's anti-competitive nature. Spirit first lodged a complaint in June, urging the Department of Transportation (DOT) to review 'Blue Sky' and make agreements public for stakeholder scrutiny.

Spirit requested a 60-day extension for the DOT's review period and publication of relevant agreements. The airline argues that JetBlue and United focused on minor aspects of 'Blue Sky,' ignoring significant concerns. Spirit insists that public input is crucial for evaluating such joint ventures.

The low-cost carrier emphasized the DOT's responsibility to assess potential anti-competitive impacts, even if they don't breach the Sherman Act. Spirit highlighted parallels with the Northeast Alliance (NEA), which violated this act, stressing that public interest must be considered before approving 'Blue Sky.'

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Spirit contends that legacy airlines have long sought to stifle low-fare competition since the Airline Deregulation Act of 1978. It claims these airlines control key competitive levers: loyalty programs, airport real estate at hubs like JFK, and pricing power on international routes.

JetBlue and United Airlines labeled Spirit's concerns as speculative, defending 'Blue Sky' as a pro-competition agreement benefiting consumers by expanding flight options and enhancing loyalty benefits. The partnership includes reciprocal loyalty program benefits and interline agreements, with slot exchanges at Newark Liberty International Airport (EWR) and New York-JFK starting in 2027.

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