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 - 01:15 / nytimes.com / Robin Hayes / Joanna Geraghty
The chief executive of JetBlue Airways, Robin Hayes, said on Monday that he planned to step down after nine years in the role and while in the middle of trying to carry out a merger with Spirit Airlines that could reshape the industry, if it isn’t blocked in court.
Mr. Hayes will be replaced by Joanna Geraghty, the company’s president and chief operating officer, on Feb. 12, which would make her the only woman to lead a major U.S. airline. Mr. Hayes, 57, will remain on JetBlue’s board and serve as a strategic adviser to the company.
In a lengthy statement, Mr. Hayes described the decision to retire as “bittersweet” and suggested that unspecified health concerns had driven it.
“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,” he said. “I am deeply grateful for these many exciting years, and I feel very lucky to have worked at an airline with a brand, culture and team that are simply unlike any other in the world.”
JetBlue announced plans in 2022 to buy Spirit for $3.8 billion. The Justice Department sued last year to prevent the deal, and the federal trial in that lawsuit concluded last month. The presiding judge has not yet issued a ruling, which could allow the deal, require that JetBlue and Spirit make some concessions, or prevent the merger altogether.
Mr. Hayes joined JetBlue in 2008 from British Airways. He became the chief executive in February 2015. The company said in a securities filing that Mr. Hayes notified the board on Sunday of his intention to step down, with the board voting to approve the appointment of Ms. Geraghty, 51, the same day.
In a message to employees, Mr. Hayes said he had been thinking about stepping down for a while.
“This decision to retire was a difficult and deeply personal one, and I’ve been putting it off for some time — first when Covid threatened our future and again when we had the opportunity to acquire Spirit,” he said.
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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JetBlue Airways and Spirit Airlines announced plans to appeal the decision by a United States federal judge to block a potential merger between the two carriers based on violations of antitrust laws.
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JetBlue and Spirit said Friday they are planning to appeal a judge’s ruling that blocked their proposed merger.
JetBlue said Friday it is cutting several routes from its network as part of its effort to return to profitability.
JetBlue and Spirit said Friday that they will appeal a judge's decision that would block them from completing their blockbuster merger.
JetBlue is cutting several routes – and dropping one city altogether – as it tweaks its route map in an effort to improve profitability.
Spirit Airlines, once a fast-growing low-cost carrier, is struggling to convince investors that it has a clear path forward after an antitrust ruling blocked the sale of the company to JetBlue Airways.