JetBlue Is Rumored to Be Interested In Acquiring Spirit Airlines

JetBlue Is Rumored to Be Interested In Acquiring Spirit Airlines

In the current legal battle over “gotcha” bag fees at airports, Spirit Airlines has been hit with a federal class-action lawsuit. The lawsuit highlights a series of issues, including the company’s refusal to compensate passengers for canceled flights and Pilots’ refusal to fly to influence the outcome. JetBlue is rumored to be interested in acquiring Spirit Airlines, so it’s worth reading the full text of the lawsuit.

Spirit Airlines lawsuit cites “gotcha” bag fees at the airport

In a recent case, a consumer sued Spirit Airlines, alleging that the company charged “gotcha” bag fees at airports that were inexplicably higher than the ticket price. The court noted that the airlines had failed to properly notify consumers of these fees and that their policies were “ambiguous.” Spirit Airways’ lawsuit also alleged that it charged customers for seat selection, as well as carry-on bags that were more than four times the price of a checked bag.

In its case, Spirit Airlines argued that it only allowed passengers to carry one personal item, which is defined as a laptop bag, handbag, or purse. The plaintiffs claimed that the airline milked these ambiguous policies to collect millions of dollars in bag fees. Although Spirit Airlines had recently overhauled its web booking procedure, a U.S. district court dismissed the case in November.

Pilots’ refusal to fly to influence the outcome

The issue of pilots’ refusal to fly to influence the outcome of the Spirit Airlines lawsuit has gotten a lot of attention lately. Spirit has canceled hundreds of flights over the past week and eighty-one flights on Sunday. In total, the airline said its action has cost it $8.5 million in lost revenue. Many of the affected flights are based in Chicago, Fort Lauderdale, Las Vegas, and Detroit. In past pilot action cases, the airlines typically prevail, although the airline has been known to lose a lawsuit if pilots refuse to fly. In one case, a federal judge ordered US Airways to stop sabotage, and the airline has subsequently delayed more flights than normal.

Spirit argues that the proposed cost savings represent a gross underestimation of the actual savings. The airline claims that it did not explain why it had to offer further concessions. The company has cited the state of the national economy, Michigan’s state, and Florida’s economy as justification for increased costs. But the union claims that the proposed concessions do not reflect bad faith. However, the airline’s proposal is a clear example of “wasteful” and unfair business practices.

Pilots’ refusal to compensate passengers for canceled flights

A spirit airlines passenger recently became aggressive toward airline employees and challenged Broward County deputies, prompting them to intervene. She was a passenger on a canceled flight and was in line when the flight was canceled. Spirit’s cancellations have caused thousands of travelers to be stranded in lines at the Fort Lauderdale-Hollywood International Airport. Several flights have been canceled on Spirit this week, resulting in a near riot in Fort Lauderdale. Three passengers from New York were arrested and charged with trespassing and disorderly conduct.

In a statement, the Air Line Pilots Association, which represents cockpit crews for Spirit Airlines, said the airline is trying to restore flights as quickly as possible. The airline has not yet returned to full operations after a severe storm in Dallas on July 8, resulting in the cancellation of over 950 flights. Spirit Airlines is a publicly traded company, but it’s not in the top 10 best stocks to buy right now.

JetBlue’s interest in acquiring Spirit Airlines

Despite JetBlue’s interest in acquiring Spirit, the board of directors of the smaller carrier has urged the company not to accept the offer. The board, chaired by Bill Franke, has long held ties to Frontier and has never taken JetBlue’s interest in the airline seriously. That doesn’t mean that shareholders shouldn’t consider an offer. If a board of directors doesn’t act in their shareholders’ best interests, likely, the offer will not be accepted.

As the takeover talks continue, the offer from Frontier Airlines was still under consideration, although that deal has also received plenty of criticism. Frontier Airlines, another bidder, was also looking to acquire Spirit. But JetBlue’s latest bid is a more compelling one. The airline argues that its offer is superior to Frontier’s and is likely to appease antitrust concerns. However, analysts disagree. Spirit shares would have to go up in price, and the proposed acquisition will result in a high cash cost for the company.

Laws