en.Wedoany.com Reported - JetBlue has won a $58.5 million bid to acquire 22 former Spirit Airlines slots at New York's LaGuardia Airport (LGA). Spirit ceased operations in May, leaving behind a strong slot portfolio at one of the nation's most congested airports. This slot acquisition will provide JetBlue with an additional 11 daily round-trip flights.
The deal is still subject to final court and regulatory approval. JetBlue informed employees via a memo on Monday that after winning this bid, the airline will evaluate its plans at the airport and consider new opportunities in its network strategy. Any expansion is not expected until next year.
JetBlue has expressed interest in moving to Terminal A (Marine Air Terminal), where Spirit operated until May. JetBlue also operated there several years ago before being relocated to LaGuardia's new terminal. The airline stated that Terminal A is a unique Art Deco space that is convenient and popular with travelers.
As part of the bid for LaGuardia slots, the airport authority required the winning bidder to take over the lease for the Marine Air Terminal. According to View From The Wing, this will make JetBlue's service offerings more economical. Due to severe airport congestion, airlines are forced to use larger aircraft to increase capacity while dealing with limited infrastructure.
For JetBlue, its earlier move to fill the gap left by Spirit at Fort Lauderdale-Hollywood International Airport (FLL) demonstrated the airline's ability to act quickly. Now, JetBlue aims to apply the same strategy at New York's third-busiest airport.
In bidding $58.5 million for the LaGuardia slots, JetBlue beat out competitor Frontier Airlines, which offered $57.5 million. According to VFTW, five other bidders with lower offers were also in negotiations. Final approval for the slot acquisition is expected by August 5, with closing to continue through October. Any transfer requires approval from the U.S. Federal Aviation Administration (FAA). This win means the airline will gain an additional 12 daily round-trip flights, but its bid was approximately 33% of the slots' assessed value ($86.74 million). JetBlue CEO Joanna Geraghty emphasized that due to high operating costs, the airline struggles to be profitable at the airport, recently operating only 13 routes, many of which have thin margins.
For JetBlue, this rare opportunity to secure a large batch of slots at LaGuardia could mean that the lower cost base of the Marine Air Terminal will improve the airline's profitability in airport operations. Acquiring 12 additional daily slots will increase JetBlue's slot control at LaGuardia from the current 3.4% to 4.6%. The airport is dominated by Delta Air Lines, which operates over 40% of flights, followed by American Airlines at 24%, and Southwest Airlines at 9%. Port Authority data shows market share rankings: first is Delta Air Lines (42.7%), second is American Airlines (24.7%), third is Southwest Airlines (9.5%), fourth is United Airlines (8.5%), and fifth is JetBlue (3.4%). It remains unclear whether JetBlue will move all operations from Terminal B to the Marine Air Terminal; the airline will consider how to disperse airport operations and reduce lease costs to improve operational efficiency and cost-effectiveness. LaGuardia is the third-busiest airport in the New York metropolitan area and one of the top 20 busiest airports in the U.S., subject to strict curfews, slot regulations, and range restrictions.
