Washington, June 24 EST: Spirit Airlines wants regulators to kill the proposed “Blue Sky” partnership between JetBlue and United, calling it a slow-motion consolidation that would edge out low-cost carriers and give major airlines even more pricing power.
In a filing to the Department of Transportation, Spirit argued that JetBlue would become “a de facto vassal of United,” functionally subordinated in strategy and pricing. Their core claim: the partnership reads less like collaboration and more like a disguised merger, just without the public scrutiny that usually comes with one.
The proposed deal, announced in May, would let passengers book flights across both airlines, pool and redeem frequent-flyer points, and connect more easily between networks. The airlines say it’s about customer convenience. Spirit says it’s about consolidating control — and that customers will pay the price.
A Familiar Playbook, With Different Packaging
This isn’t the first time JetBlue has run into regulatory friction. Its failed merger with Spirit, blocked by the DOJ last year, hinged on a similar concern: too much power in too few hands, especially in markets like New York, Boston, and Fort Lauderdale.
Now, instead of trying to absorb a rival, JetBlue is proposing something quieter: aligning with a much larger player. Spirit sees the same outcome — reduced competitive pressure, higher fares — but dressed in different language.
“This isn’t just a partnership,” a former airline exec told me. “It’s co-dependency with carve-outs.”
For Spirit, which competes by undercutting fares and stripping back frills, this kind of tie-up is existential. They’ve warned that if the DOT signs off, it won’t stop here. Other big airlines could follow the same model — pairing off with smaller or regional players under the guise of collaboration, slowly boxing out independents.
What’s Actually at Stake
At its core, this is about distribution and loyalty economics. If JetBlue passengers start routing through United’s platform, or earning United miles on JetBlue flights, the lines between the two blur fast. With network integration comes route overlap decisions, pricing alignment, and eventually, less incentive to compete head-to-head.
That’s bad news for price-sensitive travelers. Spirit argues the partnership would neutralize JetBlue’s role as a fare disruptor. And given JetBlue’s history of fighting hard on price in congested markets, that’s not an empty concern.
DOT approval would likely invite copycat alliances across the sector. Think Delta teaming up with Alaska, or American revisiting its shelved Northeast Alliance. The playbook is clear now — you don’t need to merge if you can link loyalty programs and booking engines.
Why This Fight Isn’t Just Theoretical
The government has a recent track record of skepticism toward airline consolidation. It took the DOJ less than a year to block the JetBlue-Spirit merger and undo JetBlue’s tie-up with American. So the odds of this passing quietly are slim.
What’s different here is the method: a domestic alliance instead of a corporate marriage. That makes the DOT, not the DOJ, the lead referee. It also means public comment — like Spirit’s — could carry weight in a more procedural, less litigious process.
The Blue Sky deal hasn’t been finalized. And so far, neither JetBlue nor United has responded publicly to Spirit’s filing. But inside the industry, the filing didn’t come as a surprise. Airlines have learned that if you can’t buy the competition, the next best move is to integrate around them.
Spirit’s gamble is to stop that before it becomes standard practice. The question for regulators is whether they’re ready to draw that line — or let the market redraw it for them.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
