Spirit Airlines has planned a “Blue Sky” commercial partnership between United Airlines and JetBlue Airways, explaining the deal is harmful to smaller, more competitive airlines.
In a June 24 submission to the U.S. Department of Transportation (DOT), the Florida-based discount carrier asked to see if the yet-unfully implemented Blue Sky arrangement amounts to unfair competition under US law.
“Based on what is publicly available, the implementation of these contracts appears to constitute an anti-competitive, unfair way of competition that must be prohibited,” Spirit's submission says.
In late May, United and JetBlue announced Blue Sky, a partnership that plans to sell each other's flights and offer the benefits of mutual frequent flyers.
The arrangement will allow United to secure a stronger position at John F. Kennedy International and Boston Logan International Airport in New York. JetBlue stands to expand its reach through access to United's much larger network.
JetBlue has been looking for partners for several years. In 2020, they established a sales and marketing venture with American Airlines, known as Northeast Alliance, but in May 2023 a federal judge in the US ordered the disbandment of the agreement on an anti-play field. In January 2024, a federal judge blocked JetBlue's plans to gain spirit.
It remains unknown that President Donald Trump's DOJ considers Jetblue's latest Gambit to United.
But Spirit has taken over the dot concerns about the blue sky, which has legal authority to address practices that US law considers as “an unfair way of competition.”
“The Blue Sky partnership raises serious competition and public interest questions similar to (the Northeast Alliance),” said Spirit's June 24 dot filing. “Essentially, the combination of these two carriers will dominate flights from the northeast.”
Spirit says JetBlue will become “a de facto vassal of United,” citing much larger maneuvers of its career, and that United will influence JetBlue's decision about where to fly.
Higher fares will result in two other US airlines (American and Delta Air Lines, “almost certainly they may be forced to seek similar arrangements and fewer carriers will go together,” Spirit adds.
The airline will ask to consider partnerships for competitive reasons and provide more time for public comment.
“The department will review the complaints and all other filed filings to determine the appropriate litigation to incorporate this issue,” DOT says.
JetBlue fought back.
Spirit's complaints “misreport blue skies and twist facts,” says JetBlue, who describes the partnership with the “industry standard dialogue agreement” that “does not include schedule adjustments or revenue sharing.”
“JetBlue and United remain competitors,” Jetblue said.
United declined to comment.
The airline says it plans to implement Blue Sky this year, but timeline details are not available.
JetBlue and Spirit have struggled financially in recent years amidst fleet maintenance issues and weak demand, with Spirit filing for bankruptcy protection and JetBlue culling its network to strengthen its finances.
