Divestitures Help Promote the Continued Growth
of Ultra-Low-Cost Options at Boston Logan, Newark Liberty
International, and Fort Lauderdale-Hollywood Airports
JetBlue Airways Corporation (Nasdaq: JBLU) and Allegiant
(Nasdaq: ALGT) today announced that the airlines have entered into
a definitive agreement under which JetBlue will transfer to
Allegiant all of the holdings of Spirit Airlines, Inc. (NYSE: SAVE)
at Boston Logan International Airport and Newark Liberty
International Airport. JetBlue will also turn over up to five gates
and related ground facilities at Fort Lauderdale-Hollywood
International Airport to promote ultra-low-cost carrier growth.
On June 1, JetBlue announced that it will divest all of Spirit’s
holdings at New York’s LaGuardia Airport to Frontier. Together,
these divestitures are part of JetBlue’s voluntary upfront
commitments included in the merger agreement with Spirit and are
conditioned on the closing of the JetBlue-Spirit transaction.
The divestitures are subject to approval by the local airport
authorities as well as FAA/DOT, and are conditioned upon and will
occur after the closing of JetBlue’s planned combination with
Spirit. JetBlue expects to close the transaction with Spirit in the
first half of 2024.
“Over the past twenty years, JetBlue has established itself as a
competition MVP, bringing high-quality, affordable service to a
wide variety of travelers across the United States,” said Robin
Hayes, chief executive officer, JetBlue. “Merging with Spirit will
allow us to bring our signature service and low fares to even more
people and places across the country and beyond. Our divestiture
commitment, while not needed to ensure the continued growth of the
vibrant ultra-low-cost carrier segment, is aimed at removing any
doubt of our commitment to promoting competition.”
“We are committed to long-term growth, especially in areas such
as New York, Boston and Florida. This agreement will allow us to
expand our service in these cities and ensure that customers have
even more access to affordable, nonstop flights for their travel
needs,” said Drew Wells, chief revenue officer, Allegiant.
Under the terms of the agreement, JetBlue has agreed to transfer
to Allegiant all of Spirit’s holdings in Boston and Newark,
principally consisting of two gates in Boston, two gates in Newark,
and 43 takeoff and landing authorizations in Newark. In addition,
JetBlue has agreed to relinquish up to five gates at Fort
Lauderdale to the Broward County Aviation Department and will work
closely with the Department to facilitate Allegiant’s ULCC growth
at FLL using these gates.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier
in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San
Juan. JetBlue, known for its low fares and great service, carries
customers to more than 100 destinations throughout the United
States, Latin America, Caribbean, Canada, and Europe. For more
information and the best fares, visit jetblue.com.
About Allegiant
Las Vegas-based Allegiant (Nasdaq: ALGT) is an integrated travel
company with an airline at its heart, focused on connecting
customers with the people, places and experiences that matter most.
Since 1999, Allegiant Air has linked travelers in small-to-medium
cities to world-class destinations with all-nonstop flights and
industry-low average fares. Today, Allegiant serves communities
across the nation, with base airfares less than half the cost of
the average domestic roundtrip ticket. For more information, visit
us at Allegiant.com. Media information, including photos, is
available at http://gofly.us/iiFa303wrtF.
Forward Looking Statements (Allegiant)
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements in this press release
that are not historical facts are forward-looking statements. These
forward-looking statements are only estimates or predictions based
on our management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include our statements regarding future airline operations,
revenue, expenses and earnings, available seat mile growth,
expected capital expenditures, the cost of fuel, the timing of
aircraft acquisitions and retirements, the number of contracted
aircraft to be placed in service in the future, our ability to
consummate announced aircraft transactions, the implementation of a
joint alliance with Viva Aerobus, the capital expenditures budget
for completion of our Sunseeker Resort, as well as other
information concerning future results of operations, business
strategies, financing plans, industry environment and potential
growth opportunities. Forward-looking statements include all
statements that are not historical facts and can be identified by
the use of forward-looking terminology such as the words "believe,"
"expect," "guidance," "anticipate," "intend," "plan," "estimate",
"project", "hope" or similar expressions.
Forward-looking statements involve risks, uncertainties and
assumptions. Actual results may differ materially from those
expressed in the forward-looking statements. Important risk factors
that could cause our results to differ materially from those
expressed in the forward-looking statements generally may be found
in our periodic reports filed with the Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, the impact of Hurricane Ian on our Florida markets and
completion of Sunseeker Resort, the impact and duration of the
COVID-19 pandemic on airline travel and the economy, an accident
involving, or problems with, our aircraft, public perception of our
safety, our reliance on our automated systems, our reliance on
third parties to deliver aircraft under contract to us on a timely
basis, risk of breach of security of personal data, volatility of
fuel costs, labor issues and costs, the ability to obtain
regulatory approvals as needed , the effect of economic conditions
on leisure travel, debt covenants and balances, the impact of
government regulations on the airline industry, the ability to
finance aircraft to be acquired, the ability to obtain necessary
government approvals to implement the announced alliance with Viva
Aerobus and to otherwise prepare to offer international service,
terrorist attacks, risks inherent to airlines, our competitive
environment, our reliance on third parties who provide facilities
or services to us, the impact of management changes and the
possible loss of key personnel, economic and other conditions in
markets in which we operate, the ability to successfully develop a
resort in Southwest Florida, increases in maintenance costs,
cyclical and seasonal fluctuations in our operating results, and
the perceived acceptability of our environmental, social and
governance efforts.
Any forward-looking statements are based on information
available to us today and we undertake no obligation to update
publicly any forward-looking statements, whether as a result of
future events, new information or otherwise.
Forward Looking Statements (JetBlue)
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 995,
as amended. We intend such forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements
contained in Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended, (the “Exchange Act”). All statements other
than statements of historical facts contained in this press release
may be forward-looking statements. In some cases, you can identify
forward-looking statements by terms such as “expects,” “plans,”
“intends,” “anticipates,” “indicates,” “remains,” “believes,”
“estimates,” “forecast,” “guidance,” “outlook,” “may,” “will,”
“should,” “seeks,” “goals,” “targets” or the negative of these
terms or other similar expressions. Additionally, forward-looking
statements include statements that do not relate solely to
historical facts, such as statements which identify uncertainties
or trends, discuss the possible future effects of current known
trends or uncertainties, or which indicate that the future effects
of known trends or uncertainties cannot be predicted, guaranteed,
or assured. Forward-looking statements involve risks, uncertainties
and assumptions, and are based on information currently available
to us. Actual results may differ materially from those expressed in
the forward-looking statements due to many factors, including,
without limitation, the COVID-19 pandemic and government-imposed
measures to control its spread; risk associated with execution of
our strategic operating plans in the near-term and long-term; our
extremely competitive industry; risks related to the long-term
nature of our fleet order book; volatility in fuel prices and
availability of fuel; increased maintenance costs associated with
fleet age; costs associated with salaries, wages and benefits;
risks associated with doing business internationally; our reliance
on high daily aircraft utilization; our dependence on the New York
metropolitan market; risks associated with extended interruptions
or disruptions in service at our focus cities; risks associated
with airport expenses; risks associated with seasonality and
weather; our reliance on a limited number of suppliers; risks
related to new or increased tariffs imposed on commercial aircraft
and related parts imported from outside the United States; the
outcome of legal proceedings with respect to our Northeast Alliance
with American Airlines Group Inc. and our planned wind-down of the
Northeast Alliance; the occurrence of any event, change or other
circumstances that could give rise to the right of JetBlue or
Spirit Airlines, Inc. (“Spirit”) or both of them to terminate the
Merger Agreement; failure to obtain certain governmental approvals
necessary to consummate the merger with Spirit (the “Merger”); the
outcome of the lawsuit filed by the Department of Justice and
certain state Attorneys General against us and Spirit related to
the Merger; risks associated with failure to consummate the Merger
in a timely manner or at all; risks associated with the pendency of
the Merger and related business disruptions; indebtedness following
consummation of the Merger and associated impacts on business
flexibility, borrowing costs and credit ratings; the possibility
that JetBlue may be unable to achieve expected synergies and
operating efficiencies within the expected timeframes or at all;
challenges associated with successful integration of Spirit’s
operations; expenses related to the Merger and integration of
Spirit; the potential for loss of management personnel and other
key crewmembers as a result of the Merger; risks associated with
effective management of the combined company following the Merger;
risks associated with JetBlue being bound by all obligations and
liabilities of the combined company following consummation of the
Merger; risks associated with the integration of JetBlue and Spirit
workforce, including with respect to negotiation of labor
agreements and labor costs; the impact of the Merger on JetBlue’s
earnings per share; risks associated with cybersecurity and
privacy, including information security breaches; heightened
regulatory requirements concerning data security compliance; risks
associated with reliance on, and potential failure of, automated
systems to operate our business; our inability to attract and
retain qualified crewmembers; our being subject to potential
unionization, work stoppages, slowdowns or increased labor costs;
reputational and business risk from an accident or incident
involving our aircraft; risks associated with damage to our
reputation and the JetBlue brand name; our significant amount of
fixed obligations and the ability to service such obligations; our
substantial indebtedness and impact on our ability to meet future
financing needs; financial risks associated with credit card
processors; restrictions as a result of our participation in
governmental support programs under the CARES Act, the Consolidated
Appropriations Act, and the American Rescue Plan Act; risks
associated with seeking short-term additional financing liquidity;
failure to realize the full value of intangible or long-lived
assets, causing us to record impairments; risks associated with
disease outbreaks or environmental disasters affecting travel
behavior; compliance with future environmental regulations; the
impacts of federal budget constraints or federally imposed
furloughs; impact of global climate change and legal, regulatory or
market response to such change; changes in government regulations
in our industry; acts of war or terrorism; changes in global
economic conditions or an economic downturn leading to a continuing
or accelerated decrease in demand for air travel; and risks
associated with the implementation of 5G wireless technology near
airports that we operate in. It is routine for our internal
projections and expectations to change as the year or each quarter
in the year progresses, and therefore it should be clearly
understood that the internal projections, beliefs, and assumptions
upon which we base our expectations may change prior to the end of
each quarter or year. Any outlook or forecasts in this press
release have been prepared without taking into account or
consideration of the Merger with Spirit.
Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these
statements. You should understand that many important factors, in
addition to those discussed or incorporated by reference in this
press release, could cause our results to differ materially from
those expressed in the forward-looking statements. Further
information concerning these and other factors is contained in
JetBlue’s filings with the U.S. Securities and Exchange Commission
(the “SEC”), including but not limited to, JetBlue’s 2022 Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q. In light of
these risks and uncertainties, the forward-looking events discussed
in this press release might not occur. Our forward-looking
statements speak only as of the date of this press release. Other
than as required by law, we undertake no obligation to update or
revise forward-looking statements, whether as a result of new
information, future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230911664807/en/
JetBlue Corporate Communications Tel: +1.718.709.3089
corpcomm@jetblue.com
Allegiant Media Relations Tel: 702-800-2020
mediarelations@allegiantair.com
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