JetBlue Airways and United Airlines to the rescue! This collaboration will facilitate United’s long-awaited return to New York’s John F. Kennedy International Airport (JFK). JetBlue’s partnership comes after the airline’s unsuccessful effort to acquire Spirit Airlines. Spirit, a low-cost carrier, has struggled to make it in the hyper-competitive airline industry. A judge recently blocked JetBlue’s acquisition plan, marking a significant victory for Biden’s Justice Department.
In addition, United Airlines’ CEO, Scott Kirby, has regularly shared his wish for the airline to restore its presence at JFK. She was very clear about the fact that without long-term slots, the airline was forced to leave JFK in 2022. These slots are closely controlled by the Federal Aviation Administration (FAA). United’s most recent stint at JFK ended in 2021, when demand vanished amidst the COVID-19 pandemic—causing a plummet of air traffic. Yet, this stopgap measure turned out to be unsustainable long term for the airline.
With the new alliance, some elements of their partnership will take effect starting this fall. This strategic partnership should strengthen both airlines’ presence in New York City—including LaGuardia helpful citizenship—while greatly increasing competitive service options for travelers. Whether it’s JetBlue or United Airlines, the two companies are teaming up to combine their efforts. By leveraging each other’s strengths, they hope to offer a more compelling product in one of the world’s most competitive travel markets.
The recent legal challenges JetBlue has experienced over its Spirit bid have only complicated what is already a risky business strategy. The failed acquisition, the $3.8 billion purchase of Spirit, that would have added to JetBlue’s capacity and strengthened its competitive position, has been a big blow. The court’s ruling has left JetBlue with a one-track mindset. Now, the airline considers its joint venture with United Airlines to be the most obvious path forward.
Despite these challenges, Kirby stays bullish on United’s JFK future. He expresses that this new partnership with JetBlue will put United Airlines back on the map. Beyond that, it will improve the quality and quantity of service available to passengers between New Jersey and New York City. With travel demand still increasing after the pandemic, the airlines want to be in a strong place to compete against each other when things return to normal.