JetBlue will transfer the holdings of Spirit Airlines at New York LaGuardia Airport to Frontier if the merger between JetBlue and Spirit gets approved.
The agreement would preserve ultralow-cost carrier service at capacity-constrained LaGuardia, addressing a concern of antitrust regulators at the Transportation and Justice departments.
Under the deal, JetBlue would transfer Spirit's six gates within LaGuardia's Marine Air Terminal as well as Spirit's 22 daily landing and departure slots at the airport to Frontier.
Frontier currently holds just four daily slots at LaGuardia.
In March, the DOJ sued to block the Spirit-JetBlue merger, citing concern about eliminating the largest ultralow-cost carrier in the U.S. among other issues.
Even before that suit, JetBlue had committed to divesting of all of Spirit's gates in Boston and New York, though it had not reached an agreement to do so.