Government Rejects Spirit, JetBlue Requests to Cut Flights
The United States Department of Transportation (USDOT) has denied requests by JetBlue Airways (NASDAQ: JBLU) and Spirit Airlines (NYSE: SAVE) to suspend service to certain markets, keeping in place requirements issued as part of the federal government's $50 billion bailout package to the industry.
In return for its support, the federal government has tried to make sure that the airlines maintain their networks and provide connectivity for their customers, but with traffic down 95% year over year, carriers have been looking to cut flights and preserve cash. In April, Spirit suspended service to its New York, New Jersey, and Connecticut destinations as the COVID-19 pandemic accelerated in the region. Sprit now must restore flights to those destinations.
Spirit and Jet Blue argued that larger airlines with greater resources are providing service to all markets and asked for relief from the requirements.
Source Fool.com
