Ultra low-cost airline Allegiant Air will take on Spirit Airlines’ holdings at Boston and Newark airports after the latter’s merger with JetBlue Airways following the signing of a divestiture agreement.

In addition to transferring the holdings at Boston Logan International and Newark Liberty International Airports to Allegiant, JetBlue also revealed it would turn over up to five gates and ground facilities at Fort Lauderdale-Hollywood International Airport. 

Drew Wells, chief revenue officer for Allegiant, said: “We are committed to long-term growth, especially in areas such as New York, Boston and Florida. 

“This agreement will allow us to expand our service in these cities and ensure that customers have even more access to affordable, nonstop flights for their travel needs.” 

The Allegiant deal is the second divestiture agreement announced by JetBlue since it signed the $3.8bn deal to acquire Spirit in July 2022 as the airline adheres to its voluntary upfront commitments included in the original agreement. 

Earlier this year, JetBlue announced that it would divest all of Spirit’s holdings at LaGuardia airport in New York to Frontier Airlines following the closing of its acquisition deal, expected in the first half of 2024. 

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JetBlue CEO Robin Hayes said: “Merging with Spirit will allow us to bring our signature service and low fares to even more people and places across the country and beyond. 

“Our divestiture commitment, while not needed to ensure the continued growth of the vibrant ultra-low-cost carrier segment, is aimed at removing any doubt of our commitment to promoting competition.” 

The agreement with Allegiant will cover two gates in Boston and two in Newark, along with 43 takeoff and landing authorisations at the latter airport.