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JetBlue’s merger with Spirit is great for Nevada

Kenneth Moen
Kenneth Moen
Opinion
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Spirit Airlines at Harry Reid International Airport on Wednesday, May 24, 2023. (Jeff Scheid/The Nevada Independent)

Every year, Nevada welcomes tens of millions of tourists, generating billions of dollars in economic activity through hotel stays, gaming revenue, restaurant meals, ticket sales and more. While that’s a substantial impact, these numbers could soar even higher with the right partner in place — a partner like JetBlue.

Key to driving Nevada’s economic activity is the air travel that brings many of these tourists to our state. In 2022, Harry Reid International Airport broke its all-time annual record for the number of passengers served, with 52.6 million travelers. With no plans to slow down in sight, expanding travel options to meet the growing appetite of travelers looking to visit is critical to sustain our economic growth.

Currently, JetBlue is the ninth largest domestic carrier at Harry Reid International Airport, offering nine daily flights to four destinations and carrying close to a million passengers through Las Vegas and with direct flights through Reno to Los Angeles and New York. While that is a significant number of travelers, JetBlue’s merger with Spirit Airlines will send those numbers even higher, unlocking new levels of economic growth. 

Following completion of the merger, JetBlue plans to operate 90 flights a day in Nevada, including new direct routes to cities on the East Coast such as Buffalo. That means even more Americans will have the opportunity to more easily, and more affordably, travel to Las Vegas. And while offering more direct flights is key to bringing tourists here, what is just as important is that these flights are on a low-fare carrier that is a disrupter in the industry.

Though many people know JetBlue for offering low fares and great service, what is less known is that the airline is responsible for the “JetBlue effect.” Today, four airlines — American, Delta, Southwest and United — control 80 percent of domestic air travel, meaning they can charge high fares and offer poor service, and consumers are stuck with few choices. However, it does not have to be that way.

When JetBlue enters a market and offers its signature low fares and great service, the largest airlines are forced to compete and adjust their fares accordingly. For example, when JetBlue started flying from Fort Lauderdale to Las Vegas, fares dropped by as much as 16 percent, and traffic increased by 26 percent. That’s real savings for consumers, whether they fly with JetBlue or another airline.

Despite controlling less than 10 percent of the market, a combined JetBlue and Spirit would be a wake-up call for legacy carriers and better ensure travelers have great service when looking to fly in and out of Nevada. With consumers saving more money on airfare, it would mean they are not only more likely to book a trip, but also more likely to have additional spending power when they land. That’s great news for tourists visiting Nevada, our state’s workers and businesses, and our economy.

Unfortunately, despite the immense economic benefits the JetBlue-Spirit merger would bring, the federal government recently filed a lawsuit to block the deal. In seeking to stop the merger, the government is overlooking the tangible, positive impact an expanded JetBlue presence will have on travelers and communities including those in Nevada. 

As the president of the Nevada Aviation Association, I believe expanding JetBlue’s presence and offering travelers a better flying experience is key to continuing our economic growth and ensuring Nevada remains a world class travel destination. This deal has the potential to turbocharge Nevada’s over $91 billion tourism industry that directly and indirectly supports nearly 400,000 jobs. The government should rally behind JetBlue’s plans, allow the airline to change the status quo in air travel, and give consumers more of the experience they want.

Kenneth Moen is the president of the Nevada Aviation Association.

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