Spirit Airlines, having just recovered from bankruptcy, is now challenging the proposed “Blue Sky” venture between JetBlue and United Airlines. In a submission to the U.S. Department of Transportation, Spirit contends this alliance threatens market competition and consumer choice.
🔍 Key Concerns Raised by Spirit:
- Loss of Independence for JetBlue: Spirit warns that JetBlue’s pricing decisions could become more aligned with United’s interests, effectively undermining its autonomy .
- Weakening Value Carriers: With tighter control over slots and loyalty perks, the alliance could edge out budget airlines like Spirit, especially in congested hubs such as JFK and BOS.
- Loyalty Program Integration Risks: Spirit argues that linking JetBlue’s and United’s rewards systems may compel JetBlue to buy United miles—costs that could be passed to ticket buyers.
- Echoes of the Defunct Northeast Alliance: Spirit draws parallels to the NEA, a JetBlue–American tie-up shut down for infringing antitrust rules. They fear similar issues could emerge here.
That said, industry analysts note some distinctions: unlike NEA, the proposed deal stops short of full code-sharing or revenue pooling—opting instead for interline arrangements while keeping separate flight branding. Critics argue, however, that slot swaps, loyalty reciprocity, and corporate account collaboration still warrant close regulatory scrutiny.
What This Means for Travelers & the Industry
- Market Power: If approved, the alliance could reinforce United’s dominance in critical markets.
- Independent Airlines: Budget carriers may face increased difficulty in competing for slots and customers at major airports.
- Regulatory Watch: The DOT will likely extend its review and invite public comments—echoing standards applied to prior alliances like NEA.
What to Watch
- DOT Review – Will there be an extended comment period?
- Slot & Loyalty Agreements – How deeply will the airlines integrate their programs?
- Outcome of NEA Precedents – Will regulators apply the same antitrust lens to Blue Sky?
