The highly coveted and potentially lucrative slots at New York’s LaGuardia Airport once owned by now-defunct Spirit Airlines have been awarded to another budget carrier: JetBlue.
As reported by CNBC, JetBlue has won the takeoff and landings slots for up to 12 roundtrip flights at LaGuardia, which is one of only a handful U.S. airports that utilize a slot system to handle congestion and demand.
Airlines compete heavily for a foothold in major cities like New York, and LaGuardia is among the most competitive in the nation due to airspace restrictions and infrastructure limitations.
The LaGuardia slots were widely considered to be among the most valuable assets in the Spirit Airlines portfolio, and now they transfer over to a former competitor and one-time potential merger partner in JetBlue.
According to Simple Flying, JetBlue’s winning bid for Spirit’s 22 slots came in at around $58.5 million.
Some industry experts had appraised the value of the slots at more-than $80 million, with potentially interested parties including American Airlines and Frontier. But Federal Aviation Administration chief Bryan Bedford had insisted the slots should be awarded to another low-cost carrier “for the public good.” It’s unclear if his recommendations had any effect on the overall sale price of Spirit’s forfeited slots.
The transfer of those LaGuardia slots, which comes out to roughly 12 extra roundtrip flights, is subject to court and regulatory approval.
In addition to adding these new slots to its arsenal, JetBlue is reportedly planning to make a move within the New York airport to its old stomping grounds.
According to CNBC, JetBlue is interested in moving into Terminal A, also known as the Marine Air Terminal.
The terminal was previously home to Spirit Airlines prior to its shutdown in May. JetBlue actually operated out of the facility years ago before it relocated to the larger and newer Terminal B.
“[Marina Air Terminal is] a convenient terminal travelers love,” JetBlue officials told CNBC.
As mentioned by other trade publications, “downsizing” to the smaller Marine Air Terminal would create some much-needed financial savings for JetBlue. The low-cost carrier has scaled back service offerings at LaGuardia due to rising costs in recent years.
Currently, the airline flies only four routes from LGA to Orlando, Fort Lauderdale and West Palm Beach in Florida, as well as Nantucket, Massachusetts.
JetBlue has instead allotted most of its focus on New York’s other airport, John F. Kennedy International Airport, which operates as the airline’s home base.
JetBlue and other carriers circling Spirit’s remains
With the death of Spirit Airlines, one of the airline industry’s biggest disruptors, several other low-cost carriers have already begun divvying up its former assets and territories.
Both JetBlue and Allegiant Air have announced service expansions at Fort Lauderdale-Hollywood International Airport, formerly the main hub and operations center of Spirit. JetBlue has since taken the crown as that airport’s largest tenant.
In addition to the slots at LaGuardia, Spirit also owned a smaller package at nearby Newark Liberty International Airport. Like LaGuardia, capacity at Newark is tightly constrained and those slots could also prove to be quite valuable.
Spirit’s remaining fleet of aircraft have been strategically moved to Phoenix, Arizona, where they will be sold off to the highest bidder. The total value of the airline’s fleet, engines and other equipment are likely dwarfed by the value of its former airline slots.
Spirit Airlines was officially sunsetted earlier this year after repeated years of financial turmoil, multiple bankruptcy filings, a blocked merger with JetBlue and a failed government bailout effort. The airline had been flying for 33 years under the Spirit banner.
While often treated as a punchline due to its bare-bones offerings and vibrant banana-yellow planes, Spirit was a disruptor in the airline industry and played a key role in forcing larger airlines to keep their prices competitive.
As reported earlier this year, in the immediate aftermath of Spirit ceasing operations, airline prices experienced a significant bump, particularly in and around cities where the airline previously had major footing.
How will JetBlue use its new LaGuardia slots?
Before its extinction, Spirit used its LaGuardia slots to fly to Dallas, Chicago, Detroit, Houston, and Fort Lauderdale.
It’s unclear exactly how JetBlue will use the slots moving forward, but industry expert Robert Mann told The Points Guy to expect more service to-and-from Florida.
JetBlue is expected to begin its expansion next year, assuming all legal and regulatory hurdles are cleared.
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