JetBlue wins Spirit slots at LaGuardia, considers moving terminals

JetBlue Airlines It won spots for Spirit Airlines at New York’s LaGuardia Airport and is looking to return to the failed budget carrier’s old home, a major shake-up at the crowded airport less than three months after the discount collapsed in the biggest failure of a US airline in decades.

JetBlue said the slots at the tightly controlled airport are designated for 12 round-trip flights and are still subject to final court and regulatory approvals.

Slots and gates are valuable at busy airports like LaGuardia because tight airspace restrictions and congested airports in a large city like New York limit airline growth.

Airlines have resorted to using larger planes suitable for a larger number of passengers to enhance their capacity in some cases because the infrastructure is very limited.

JetBlue told employees in a memo on Monday, seen by CNBC, that it is now moving to “evaluate our plans for slots as we consider opportunities for our network strategy,” noting that any expansion would not occur until 2027.

According to the memo, JetBlue wants to move into Terminal A, also known as Marine Air Terminal, an Art Deco facility where Spirit operated until it closed in early May. JetBlue previously operated out of space before moving to a newer terminal years ago.

“It’s a comfortable terminal that travelers love,” JetBlue said of the Naval Air Terminal.

The New York-based airline, which is in the midst of a major expansion at Fort Lauderdale-Hollywood International Airport in Florida, said last month that it would reduce its headcount at LaGuardia Airport and Newark Liberty International Airport in New Jersey and ramp up service in Fort Lauderdale.

Spirit Airport’s assets are now making their way through US Bankruptcy Court in New York.