Jetblue said Friday it may back out of its merger with Spirit Airlines, after a federal judge blocked the $3.8 billion deal last week.
09.01.2024 - 19:06 / thepointsguy.com / Spirit Airlines / Robin Hayes / Joanna Geraghty / U.S.Airlines
Longtime JetBlue CEO Robin Hayes will retire, the airline announced Monday, and will be succeeded by airline president Joanna Geraghty.
Hayes, who is 57, will step down effective Feb .12, the airline said, citing health reasons.
"I've loved working in this industry," Hayes said in a statement. "However, the extraordinary challenges and pressure of this job have taken their toll, and on the advice of my doctor and after talking to my wife, it's time I put more focus on my health and well-being."
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Geraghty, who has been with JetBlue for nearly 20 years, will be the first woman to lead a major U.S. airline.
"I'm so proud of what we've accomplished over the last 20-plus years, and I am looking forward to building on this momentum as we execute on our strategic initiatives, return to profitable growth, and generate sustainable value for our shareholders and all our stakeholders," Geraghty said in a statement.
Hayes has helmed the New York-based carrier since early 2015. He joined the airline in 2008 after working at British Airways as executive vice president for the Americas.
During his time at JetBlue, through stints as chief commercial officer, president and, eventually, chief executive, Hayes led the charge to expand and grow the airline beyond a small, quirky boutique carrier. He led the development and expansion of the airline's Mint business-class product, along with the airline's first routes to Europe.
Hayes also spearheaded efforts to grow the airline through partnerships and acquisitions. Under Hayes, JetBlue tried to buy Virgin America in 2016, but was eventually outbid by Alaska Airlines.
In 2020, JetBlue and American Airlines announced the Northeast Alliance, a close codeshare and frequent flyer partnership that came to define the airlines' respective domestic networks over the next two years. The partnership was challenged by the Department of Justice under the Biden Administration and dismantled in 2023 after a judge ruled that it was anti-competitive.
Hayes' departure comes at an inflection point for the airline as it awaits the decision in another antitrust trial, challenging its planned acquisition of Spirit Airlines.
In that case, which was heard in federal District Court in Boston late last year, JetBlue argued that it needed to grow through the merger in order to compete effectively with the "big 4" airlines that dominate 80% of the U.S. market — American, Delta, United and Southwest. By acquiring Spirit's aircraft and absorbing its workforce, JetBlue could effectively double in size to become the fifth-largest U.S. carrier.
The DOJ, however, argued that removing Spirit from the market would cause the
Jetblue said Friday it may back out of its merger with Spirit Airlines, after a federal judge blocked the $3.8 billion deal last week.
JetBlue on Friday said for the first time that its agreement to purchase Spirit Airlines for $3.8 billion may collapse, signaling that the New York-based airline may be looking to pull out of the deal.
JetBlue Airways said on Friday that it might back out of a $3.8 billion acquisition of Spirit Airlines after a federal judge blocked the deal.
On January 16, a federal court judge ruled to block JetBlue Airways’ proposed $3.8 billion purchase of Spirit Airlines on antitrust grounds. The decision was made based on a U.S. Justice Department lawsuit filed in March 2023 and aimed at stopping the deal. According to the suit, the merger would “allow JetBlue to eliminate its largest ultra-low-cost rival, further concentrate the airline industry, and harm American travelers.”
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