To preserve competitive access to New York, Frontier Airlines Holdings will acquire Spirit Airlines' 22 slot pairs at New York La Guardia as part of the Florida-based ultra-low-cost carrier's planned USD3.8 billion merger with JetBlue Airways (B6, New York JFK).

This follows a definitive agreement between Frontier Airlines Holdings and JetBlue, whereby the New York home-based budget carrier agrees to transfer to Frontier all of Spirit's holdings at La Guardia, consisting of six departure gates at the Marine Air Terminal and the takeoff and landing slots.

The divestitures are conditional on closing the merger between JetBlue and Spirit and will happen after the deal is concluded. It is also subject to additional closing conditions, including approval by the Port Authority of New York and New Jersey, the US Federal Aviation Administration (FAA)n and the US Department of Transportation (DOT)

"We are committed to ensuring our combination with Spirit preserves ultra-low-cost carrier access in New York," commented JetBlue Chief Executive Officer Robin Hayes. "We are pleased that this agreement with Frontier will maintain the same level of ultra-low-cost carrier service at LaGuardia Airport."

Frontier Airlines (F9, Denver International) President and Chief Executive Officer Barry Biffle said the arrangement would enable the airline to expand its operations at LaGuardia significantly. "We're pleased to have reached this agreement to acquire Spirit's slot pairs and leasehold interests at New York's LaGuardia Airport, pending regulatory approval of the JetBlue-Spirit merger."

The slot deal is notable as Frontier lost out to JetBlue in a bid to acquire Spirit.

JetBlue expects to close the merger with Spirit in the first half of 2024, which would see the creation of the US's fifth largest airline with a combined value of USD11.9 billion in annual revenues.

However, the transaction is still pending the outcome of a lawsuit by the US Department of Justice (DOJ) which is trying to block the proposed merger on anti-trust grounds. The DOT has already denied an exemption request by JetBlue and Spirit to operate under common ownership, saying this would be premature pending the outcome of the DOJ lawsuit in the US District Court in Boston. The trial has been scheduled for October 16, 2023.