JetBlue says it won't appeal a judge's ruling against its partnership with American Airlines, effectively dropping the deal in an effort to salvage its purchase of Spirit Airlines.
JetBlue Airways said Wednesday that it wind down the deal with American in New York and Boston in the coming months and “turn even more focus” to its proposed $3.8 billion purchase of Spirit.
The U.S. Justice Department sued to block the Spirit sale, saying it would hurt competition by eliminating Spirit, the nation's biggest discount airline. JetBlue hopes that dropping the deal with American might persuade the government to allow the Spirit purchase to go ahead.
A federal judge decided in May that JetBlue and American must end their partnership because it violates U.S. antitrust law. American has said it will appeal the ruling.
Last month, JetBlue and American asked U.S. District Judge Leo Sorokin to let them keep selling selling tickets on each other’s flights, an arrangement called code-sharing, and offering reciprocal frequent-flyer benefits. It now appears that those features will also go away.
