AssetID: 53536886
Headline: UNCAPTIONED: JetBlue and Spirit Terminate Proposed Merger
Caption: JetBlue and Spirit Terminate Proposed Merger. On March 4, JetBlue and Spirit Airlines announced that a court ruling has blocked the companies' proposed $3.8 billion merger. Associated Press reports that JetBlue said the two companies are unlikely to meet the required closing conditions prior to a July 24 deadline. Both companies' CEOs expressed disappointment in canceling the potential deal. "We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently." Joanna Geraghty, JetBlue CEO, via Associated Press. "We are disappointed we cannot move forward with a deal that would save hundreds of millions for consumers and create a real challenger to the dominant ‘Big 4’ U.S. airlines." "However, we remain confident in our future as a successful independent airline." Ted Christie, Spirit CEO, via Associated Press. AP reports that JetBlue will be required to pay Spirit a termination fee of $69 million. Last year, the Justice Department moved to block the merger, claiming it would reduce competition and drive up costs for consumers. In January, a Boston federal district judge blocked the deal, claiming it would violate antitrust laws. News of the cancellation drove shares of JetBlue Airways up over 5% in premarket trading. At the same time, news of the abandoned merger caused stock in Spirit to drop over 13%. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Jetblue,Spirit,Terminate,Proposed,Merger,Blocked,Companies,Announced,Airlines,Court,Business,Closing conditions,Deadline,Potential deal
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