JetBlue Plans Job Cuts In New York And Boston, But Assures No Furloughs As American Airlines Partnership Ends

In a recent announcement, JetBlue Airways (NASDAQ:JBLU) CEO Robin Hayes informed employees that the airline would likely require fewer jobs in New York and Boston due to the termination of its partnership with American Airlines. However, he assured that there are no plans for worker furloughs as the company shifts its focus to its proposed acquisition of Spirit Airlines (NYSE:SAVE), The Wall Street Journal reports.

Shift in Focus

JetBlue executives have decided not to join American in contesting a judge’s ruling against their partnership, which was the result of a lawsuit by the Justice Department. Instead, JetBlue will concentrate on its $3.8 billion Spirit deal, which has also been challenged by the department.

See Also: JetBlue Announces Record and Payment Dates for June 2023 Additional Prepayment to Spirit Stockholders

Legal Challenges

The partnership between American and JetBlue, formed in 2020 to strengthen their position in New York and Boston, was challenged by the Justice Department and several states. They argued that it would increase fares and reduce competition. A federal judge ruled against the airlines’ partnership in May, a decision JetBlue still strongly disagrees with but will not contest to avoid complicating its separate legal challenge to merge with Spirit Airlines.

Future Plans

Acquiring Spirit is crucial to JetBlue’s growth plans, providing it with more planes and pilots to become a stronger competitor to larger rivals. JetBlue believes that ending its partnership with American should prompt the Justice Department to reconsider its opposition to the Spirit merger.

Read Also: JetBlue Ups Offer On Spirit Takeover Bid: What You Need To Know

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