JetBlue Airways Corporation and Frontier Group Holdings, Inc. have announced that the airlines have entered into a definitive agreement under which JetBlue will divest all of the holdings of Spirit Airlines, Inc. at New York’s LaGuardia Airport to Frontier in connection with JetBlue’s planned merger with Spirit.

These divestitures are part of JetBlue’s upfront commitments included in the merger agreement with Spirit and are conditioned on the closing of the JetBlue-Spirit transaction.

Under the terms of the agreement, JetBlue has agreed to transfer to Frontier all of Spirit’s holdings at LaGuardia, principally consisting of six gates at the Marine Air Terminal and 22 takeoff and landing slots. The divestitures are conditioned upon, and will occur after the closing of, JetBlue’s planned combination with Spirit and are subject to additional closing conditions, including approval by the Port Authority of New York and New Jersey and the FAA/DOT.

JetBlue expects to close the transaction with Spirit in the first half of 2024.