A JetBlue airliner lands past a Spirit Airlines jet on taxi way at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images)
Joe Cavaretta | Sun Sentinel | Getty Images
Spirit Airlines shareholders have approved a takeover by JetBlue Airways after a six-month battle to create the country’s fifth-largest carrier, a deal that now faces a high hurdle with federal regulators.
Spirit announced the results of the vote after a special shareholder meeting on Wednesday. In April, JetBlue made a $3.8 billion all-cash offer for Spirit, derailing Spirit’s plan for a cash-and-stock deal to merge with Frontier Airlines.
The airlines said they expect to close the transaction no later than the first half of 2024.
The airlines now must convince federal regulators that that agreement won’t harm competition and drive up fares for consumers, a major hurdle in getting the takeover approved.
The Biden administration has taken a hard stance against deals they argue will harm consumers. The Justice Department is currently battling JetBlue’s existing partnership with American Airlines in the Northeast in court in Boston.
“This is an important step forward on our path to closing a combination that will create the most compelling national low-fare challenger to the dominant U.S. carriers,” Spirit Airlines CEO Ted Christie said in the release. “We look forward to continuing our ongoing discussions with regulators as we work toward completing the transaction and delivering value to Team Members, Guests and stockholders.”
Analysts expected the deal to win shareholder approval. Shares of both companies were up about 2% in early trading Wednesday.
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