The FAA this week said it is inclined to support JetBlue’s purchase of 22 former Spirit Airlines slots at New York-LaGuardia.
In a notice published in the Federal Register on Monday, the agency said JetBlue’s acquisition of the slots “ensures that scarce public airspace resources are returned to active commercial service under a proven low-fare business model.”
JetBlue is seeking an exemption from a standing FAA order that normally prohibits the sale or purchase of slots at LaGuardia. The airline’s appeal seemingly meets the conditions for an exemption, regulators said, as long as JetBlue meets minimum usage requirements going forward.
“FAA tentatively concludes that granting relief to the carriers from the prohibition on selling and purchasing slots in the order, subject to certain conditions and limitations, is in the public interest,” the agency said.
If the deal were to go through, JetBlue would not be allowed to trade or lease any of Spirit’s former slots until April 2028.
JetBlue in July won an auction for the slots with a bid of $58.5 million. It beat out a rival offer from Frontier, which was prepared to pay $57.5 million.
LaGuardia is one of the most tightly regulated airports in the U.S., and competition for access among airlines is fierce. It is one of only three fully slot-controlled airports in the country, the others being New York-JFK and Reagan National.
Members of the public will be able to comment on the pending sale through Sept. 21. A final review and potential approval will take place once the comment period is over.
