Exclusive - Spirit Airlines presses JetBlue to appeal merger block: sources
By Anirban Sen and Rajesh Kumar Singh
(Reuters) — Spirit Airlines (NYSE:SAVE) is seeking to convince JetBlue Airways (NASDAQ:JBLU) to appeal a decision by a federal judge to block the tie-up between the sixth and seventh largest U.S. airlines, according to people familiar with the discussions.
Spirit's shares have lost more than 60% of their value since U.S. District Judge William Young ruled on Tuesday that the company's $3.8 billion sale to JetBlue should not proceed, siding with antitrust regulators who argued the deal would lead to higher fares for passengers.
The value of Spirit's bonds have also plunged in value, highlighting its financially precarious position were it to be left without a deal. Its bonds went from trading around 75 cents on the dollar down to 50 cents, amid investor concerns about the company's ability to pay some $1.1 billion in debt due in September 2025.
Spirit has told JetBlue that their deal contract requires them to exhaust legal options to complete their deal, and that they should appeal the judge's ruling, the sources said.
JetBlue, however, has yet to decide whether it will seek an appeal, according to the sources. It is assessing the chances of an appeal succeeding and is also mindful that Spirit's business has deteriorated significantly since the two agreed the tie-up in July 2022, the sources said.
Some analysts have pointed out that JetBlue may be better off paying Spirit and its shareholders a $470 million break-up fee to terminate the deal. But to do so, JetBlue will have to show that it fulfilled its obligation under the deal contract to do everything it can to get the deal completed.
It is possible that the two airlines agree to appeal the judge's decision. Their spokespeople
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