New York hometown airline JetBlue is celebrating the winning bid of $58.5 million to gain 22 ex-Spirit Airlines slots at LaGuardia Airport (LGA). Spirit, which ceased operations in May, held a strong portfolio at one of the country’s most congested airports. This recent win for JetBlue will see an additional 12 daily round-trip flights.

While subject to final court and regulatory approvals, the slots are tightly controlled, and JetBlue advised staff via a memo on Monday that, now having won the $58.5 million bid, the airline is set to evaluate its plans at the airport and consider new opportunities within the network strategy. Any expansion is not expected to come to fruition until next year.

A Potential JetBlue Move To LaGuardia Terminal A

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JetBlue has noted that it would like to move to Terminal A, which Spirit operated out of up until May. JetBlue had previously operated in this space before being moved to the new terminals at LaGuardia several years ago. Terminal A, known as the Marine Air Terminal, is a unique Art Deco space that is convenient and a terminal that ‘travelers love,’ boasted the carrier.

For JetBlue, its wide planning and persistence, have seen it fill the gap left by Spirit Airlines, with the best example at Fort Lauderdale-Hollywood International Airport (FLL). The airline was able to move quickly, and it now shows the carrier is hoping to do the same at New York’s third busiest airport.

As part of the bid for the slots at LGA, the airport authority has insisted that the winning bidder is to take over the lease for the Marine Air Terminal, which, as suggested by a View From The Wing, will make the service offering for JetBlue ‘more economical’. Due to the airport being heavily congested, airlines have been forced to use larger planes to boost capacity, while also dealing with limited infrastructure.

Filling The Void Left By Spirit Airlines

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As mentioned, JetBlue was quick to move into operations at Fort Lauderdale, and last month the airline noted that it was reconsidering operations at LaGuardia and Newark Liberty International Airport (EWR) as it pushed for an expansion in Florida. The airline’s bid for $58.5 million to gain the slots at LaGuardia edged out Frontier Airlines, which had a demanding bid of $57.5 million. According to the VFTW, a total of five other lower bidders were also in negotiations.

It is expected that final approval for the slot takeover will be made by August 5, with closing considerations lasting until October. Any transfer will need to be approved by the Federal Aviation Administration (FAA). While for JetBlue the winning bid means that the airline will gain an extra 12 daily round-trip flights, the offer was around 33% of what the slots were appraised at ($86.74 million).

JetBlue Chief Executive Officer Joanna Geraghty has stressed that the airline struggles to make money at the airport due to high operating costs, and has seen more recently the airline only operate a total of 13 routes, with many of them operating on slim profits.

A Great Opportunity For Rare Slot Availability

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For JetBlue, this rare opportunity to gain a large block of slots at LaGuardia could mean the lower cost base in the Marine Air Terminal would allow JetBlue to increase profitability from operating at the airport. The acquisition of 12 additional daily slots will increase the airline’s slot control at LGA to 4.6%, an increase from 3.4% currently. The airport is dominated by Delta Air Lines, who operate more than 40% of all flights, followed by American Airlines at 24%, and Southwest Airlines with 9%. Port Authority Statistics below:

It is yet to be seen if JetBlue will move all operations from Terminal B to the Marine Air Terminal, as the airline will look to consider how it can spread its operations at the airport and lower lease costs to improve operational efficiency and costs.

LaGuardia is the third busiest airport in the New York metropolitan area, and in the top 20 busiest in the United States. The airport is strictly governed by a curfew, slot system, and perimeter rule. For JetBlue, this opportunity to gain these slots is a once-in-a-lifetime opportunity, and it will be exciting to see what the carrier has planned.