JetBlue, Spirit seek expedited appeal of ruling blocking merger
Reuters
Published Jan 30, 2024 09:09AM ET
Updated Jan 30, 2024 03:07PM ET
By David Shepardson
(Reuters) - JetBlue Airways (NASDAQ:JBLU) and Spirit Airlines (NYSE:SAVE) are seeking an expedited appeal aimed at reversing a lower court ruling that blocked their $3.8 billion merger.
The airlines in a joint court filing asked the First U.S. Circuit Court of Appeals to reverse the decision that they argue "disregards the benefits of the transaction to the majority of the flying public."
The airlines said if the appeal is not expedited, the court may have no opportunity to review the decision because the merger agreement includes an outside closing date of July 24.
"If the merger agreement terminates before this Court can issue its decision" benefits from the deal will be lost, they argued.
On Friday, JetBlue raised doubts about the merger deal, saying it might be unable to meet certain conditions required as part of the agreement for unspecified reasons.
JetBlue said it continues to evaluate options under the agreement and, unless the agreement is terminated, it would abide by its merger obligations. In response, Spirit said Friday there was no basis for terminating the merger agreement. It said it would continue to abide by its obligations and was expecting JetBlue to do the same.
Without the JetBlue deal, Spirit faces a rough road ahead as the ultra-low-cost carrier has grappled with weak demand in its key markets as it seeks to return to sustainable profitability. Some analysts have even suggested the company could face bankruptcy if it cannot shore up finances.
Earlier this month, a U.S. judge blocked the airline's planned merger with JetBlue, after finding that the proposed deal could threaten competition in the U.S. aviation market and harm ticket prices.
JetBlue said on Tuesday it was evaluating deeper cost cuts after the company forecast a fall in revenue and higher costs in the first quarter as it grapples with uneven travel demand.
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Written By: Reuters
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