JetBlue and Spirit are ending their $3.8 billion merger plan after a federal judge blocked the deal

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By DAVID KOENIG and MICHELLE CHAPMAN (AP Business Writers)

JetBlue Airways and Spirit Airlines are ending their proposed $3.8 billion merger weeks after a federal judge blocked the the deal, saying it would hurt consumers who depend on Spirit’s lower fares.

JetBlue said Monday that even though both companies still believe in the deal, they were unlikely to meet the closing conditions required in the agreement before a July 24 deadline.

JetBlue’s new CEO, Joanna Geraghty, called the merger “a bold and courageous plan intended to shake up the industry status quo” and speed JetBlue’s growth.

“However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low,” Geraghty said in a memo to employees of New York airline. She said uncertainty over the merger’s fate was distracting the airline from its effort to return to profitability.

Spirit CEO Ted Christie said he was disappointed that the airlines could not combine and create a new challenger to the nation’s four biggest airlines but said he is confident that Spirit — which has been losing money since the pandemic started — can succeed on its own.

JetBlue will pay Spirit a $69 million termination fee.

The Justice Department sued to block the merger last year, saying it would reduce competition and drive up fares, especially for travelers who depend on low-fare Spirit.

In January, a federal district judge in Boston sided with the government and blocked the deal, saying it violated antitrust law.

The airlines appealed the ruling, and a hearing had been set for June.

Spirit and Frontier Airlines announced a $2.2 billion merger in early 2022 — a deal that would have combined two similar carriers that charge lower fares than the big airlines but add on fees that generate a large chunk of their revenue.

Spirit and Frontier Airlines announced a $2.2 billion merger in early 2022 — a deal that would have combined.

JetBlue jumped into the fray against the wishes of Spirit’s management, which warned that it would be difficult to win regulatory approval for a Spirit-JetBlue combination. JetBlue went over the heads of Spirit’s board, directly to Spirit’s shareholders, and won a bidding war against rival Frontier a few month later.

While the deal was taking shape and wound up in court, there were continuing losses and other problems at Spirit, which is based in Miramar, Florida. In late January, JetBlue warned that it might terminate the agreement.

JetBlue has also been losing money and faces its own uncertain future. Activist investor Carl Icahn bought nearly 10% of JetBlue stock last month and won two seats on JetBlue’s board.

The end of the JetBlue-Spirit deal raises questions about whether Alaska Airlines can pull off its proposed purchase of Hawaiian Airlines for $1 billion plus the assumption of about $900 million in debt. The Justice Department has not indicated whether it will sue to block that agreement.

Shares of JetBlue Airways Corp. rose 2% in morning trading, while Spirit sank 12%.

St. Croix County turns to voters to bolster public safety services

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As the population of St. Croix County grows, so does the demand for public-safety services, officials say.

Residents of the county, one of the fastest-growing in Wisconsin, are being asked to vote “Yes” next month on a referendum to increase property taxes to cover costs for eight public-safety positions.

“There’s a need for additional personnel that current funding levels cannot support,” said County Administrator Ken Witt.

St. Croix County Administrator Ken Witt (Courtesy of St. Croix County)

The positions include two mental-health co-responders, two sheriff’s correctional deputies, one sheriff’s office investigator, one District Attorney investigator, one youth-justice early-intervention specialist and one deputy clerk of court.

The positions are “not overly glamorous,” Witt admits, “but they are really important in order to support the whole public-safety structure. You can’t just increase one area. You have to raise all boats at the same time in order to keep things level.”

The deputy clerk of court position, for example, is essential to managing the court system’s growing caseload, he said. In 2023, almost 9,600 cases were filed in the St. Croix County Clerk of Court’s Office, up from 8,900 cases in 2022, he said.

Local governments in Wisconsin are restricted in their ability to levy taxes, so the Wisconsin Legislature “created a process for communities in this exact situation to go out for referendums to cover costs,” Witt said. “It allows us to ask taxpayers to support the reason for the increase.”

The April 2 referendum, which requires a simple majority to pass, asks voters to approve an increase of $896,000 to the tax levy cap; the increase would go into effect in 2025.

The measure will add about $15 a year to the property tax bill of a $300,000 house in St. Croix County, the median value for homes in the county.

Officials in St. Croix County went to referendum for the first time last April, seeking an increase of $3.5 million for 24 additional public-safety positions. Although that referendum failed to pass, “the state of Wisconsin came through with some additional money for us,” Witt said. “We were able to add 13 new positions, but we still have a need.”

Mental health co-responders

The county, which has a population just under 100,000, is projected to be Wisconsin’s fastest-growing in percentage terms through 2040, increasing by 41 percent (from census data in 2010), according to county officials. It ranked as Wisconsin’s top-growing county from 1980 to 2010, officials said.

“That’s due to our location — our proximity to the Twin Cities, the job availability, and the cultural draw of living in this area,” Witt said. “It still has rural character, but I can be in downtown Minneapolis in 25 minutes outside of rush hour.”

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The county used $17.5 million from the American Rescue Plan Act of 2021 to fund a number of different positions, including two mental-health co-responders, Witt said. “With the ARPA money, we tried a number of things that we had on our wish list — things that we could do while we had the resources,” Witt said.

The co-responders go out with law enforcement to mental-health crises, help prevent high-cost hospital detentions, reduce law-enforcement time responding to these cases and provide compassionate care to those in crisis.

Since they started in March of 2022 through January of 2024, they have responded to 280 crisis calls across the county. The ARPA funds, which cover their positions, expire at the end of this year, Witt said. “They’ve really proven to be the most effective thing that we have tried, and we would really like to continue those positions,” he said.

More crimes, more complexity

In 2019, there were 1,433 criminal referrals to the District Attorney’s Office by all agencies. In 2023, there were 2,372 cases, a 65 percent increase.

Many crimes committed in the county now include a digital element, which adds to the complexity of investigating cases, said Sheriff Scott Knudson.

St. Croix County Sheriff Scott Knudson. (Courtesy of St. Croix County)

“The complexity of our day-to-day jobs has changed with the advent of social media and digital media,” he said. “There is so much more to try and gather to put good cases together.”

If the referendum is not approved, St. Croix County investigators will have to prioritize the department’s most critical cases, Knudson said. “That will push down quality-of-life investigations, like vandalism and other property-related crimes,” he said. “They’ll take longer to complete when we can get to them.”

Additional staff also is needed at the St. Croix County Jail in Hudson to deal with the increase in mental-health and substance-abuse cases, Knudson said.

In 2020, nine new cells for inmates with special needs were added to the jail. Additional officers are needed to help in the special-needs unit, which houses inmates who have mental-health or substance-abuse issues, Knudson said.

“It’s for inmates who require special attention,” he said. “Jail is not necessarily the best placement for them, but if you add in a criminal charge and a lack of resources in our state mental-health resource area, that is where they end up.”

It can often take awhile for an inmate with a mental-health commitment to be placed at the Mendota Mental Health Institute in Madison or the Winnebago Mental Health Institute in Oshkosh, Knudson said. “Those are our extended-placement options, but until a spot opens up, they have to be held in the jail,” he said.

The population was 126 on Friday; the average length of stay is 13.4 days, but 75 percent of the inmates stay for only one to four days, Knudson said.

Another new hoped-for position is the Youth Justice Early Intervention Specialist, a person who would work with students, families, schools, and the county’s municipal courts to address the underlying causes of truancy, officials say.

“The idea is to address truancy before it becomes chronic or habitual,” said Adam Kastonek, the county’s public-information officer. “This position will help keep truancy cases out of the youth justice system and help to prevent further involvement in the justice system.”

St. Croix County levy referendum

The following question will be on the April 2, 2024, ballot:

“Under state law, the increase in the levy for St. Croix County for the tax to be imposed for the next fiscal year, 2025, is limited to 2%, based on St. Croix County’s best estimate, which results in a levy of $46,002,438. Shall St. Croix County be allowed to exceed this limit and increase the levy for the next fiscal year, 2025, for the purpose of hiring two Mental Health Co-Responders, one Youth Justice Early Intervention Specialist, two Sheriff Corrections Deputies, one Sheriff Investigator, one District Attorney Investigator, and one Deputy Clerk Of Court; to address the County’s most pressing public safety needs, by a total of 1.96%, which results in a levy of $46,898,438, and on an ongoing basis, include the increase of $896,000 each fiscal year going forward?

“A ‘Yes’ vote means that you support additional personnel being hired to address the increasing public safety needs within St. Croix County at a cost of $896,000 per year, added to the tax levy. The one-time increase creates a new authorized tax levy total amount going forward. The one-time increase is equivalent to $5 per $100,000 of property value.”

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Column: New QBs coach Kerry Joseph says ‘it’s about trust’ with the Chicago Bears QB — whoever that ends up being

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MOBILE, Ala. — Kerry Joseph doesn’t have any thoughts yet on the Chicago Bears’ biggest offseason decision, the one that holds the key to the NFL draft.

The team’s new quarterbacks coach, hired Friday, doesn’t even know where his office is at Halas Hall. He has been on a whirlwind tour since the season ended, free to seek a new job after the Seattle Seahawks forced out coach Pete Carroll.

Joseph, the assistant quarterbacks coach for the Seahawks the last two seasons, spent one day in Lake Forest interviewing for the Bears job. In between, he was scrambling to get to Mobile, where he’s serving as quarterbacks coach of the American team in the Senior Bowl.

Somehow along the way, Joseph got hooked up with Bears gear and was wearing a team-issued navy hat, navy shorts and gray sweatshirt at practice Tuesday at Hancock Whitney Stadium on the South Alabama campus.

He doesn’t have preliminary thoughts on Justin Fields. Joseph was the assistant wide receivers coach in Seattle in 2021, when the Bears drafted Fields. He has yet to dig in on this year’s draft, in which the Bears hold the first and ninth picks and are in position to select a new quarterback.

“I was getting transitioned to coming out here,” the 50-year-old Joseph said.

It’s the first time he has been an NFL position coach — above the assistant position coach level. The connection is easy to make. He worked with new Bears offensive coordinator Shane Waldron, who came from the Seahawks. The Bears also interviewed Seahawks quarterbacks coach Greg Olson for the offensive coordinator job.

The last first-time quarterbacks coach the Bears hired was Shane Day in 2010 based on his experience working with then-offensive coordinator Mike Martz in San Francisco. Since Day, the Bears have rolled through Jeremy Bates, Matt Cavanaugh, Dowell Loggains, Dave Ragone, John DeFilippo and most recently Andrew Janocko.

It would be overly dramatic to say this is the most important offseason for a Bears quarterbacks coach. There has been urgency to get the position right for the longest time. It just so happens they own the No. 1 draft pick as they prepare to thoroughly examine a talented group of passers, including USC’s Caleb Williams, North Carolina’s Drake Maye (who was a spectator at practice Tuesday), LSU’s Jayden Daniels and Michigan’s J.J. McCarthy.

Joseph, who was responsible for red-zone preparation with the Seahawks, had a hand in helping revive Geno Smith’s career in Seattle as Smith threw for 4,282 yards and 30 touchdowns in 2022. Joseph’s knowledge of Waldron’s system will be critical whether the Bears draft a quarterback or not.

“When you think about Shane and what we were able to do with the (Seahawks) offense, I think quarterback play is about having confidence,” Joseph said. “Quarterback play is just about being competitive. It’s about being smart, being dependable, having a good IQ of the game, being passionate.

“When you think about traits, when you talk about quarterback play and when you talk about Shane’s mentality, it’s just about being connected to the play caller, being connected to the offense. There are some things you’ve got to have and you’ve got to bring to it.”

Joseph was a quarterback at McNeese State and had a 42-11 record as a four-year starter, helping the Cowboys to two Southland Conference titles. He spent time with the Cincinnati Bengals in 1996 as an undrafted free agent before playing in NFL Europe. He tried to make the Washington Redskins as a slot back and then played safety for the Seahawks from 1998 to 2001, appearing in 56 games with 14 starts.

He returned to quarterback in the Canadian Football League in 2003, winning a Grey Cup with the Saskatchewan Roughriders in 2007, when he was named the league’s most outstanding player. After retiring following the 2014 season, he got into coaching at the college level with stops at his alma mater and Southeastern Louisiana before joining the Seahawks as an offensive assistant in 2020.

The diverse background — having played defense in the NFL — gives him a different perspective to teach offensive football.

“It helps me tremendously,” Joseph said, “because playing the safety position, playing that dime (position), playing down in the box helped me understand how defenses attack the offense, how guys fit. So now that I’ve gone back to quarterback, I see it from a defensive mentality.

“Being able to help guys to understand the game, not just from the offensive side but from the defensive side, kind of helped (with) where to put their eyes. That’s what it did for me as a player, and I try to teach it that way with a defensive mentality.”

Joseph will learn where his office is soon, and then he can hit the ground running as the Bears prepare for the draft and install a new offense — quite possibly with a new quarterback. As far as his philosophy on developing a young quarterback, he leaned into some basic tenets.

“I use three things: accountability, responsibility, communication,” Joseph said. “It’s about trust, believing and having confidence in each other. A quarterbacks coach and a quarterback, you’ve got to have those three things.

“Then, hey, it’s about the fundamentals. It’s about developing the fundamentals, developing the mentality to be a good leader. To be a winner. Just willing to compete. There are so many things that I have in my philosophy as a person that I take into the coaching world and into the quarterback room to help develop a group of guys.”

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Chicago Bears zero in on Chris Beatty — DJ Moore’s college position coach — as their wide receivers coach

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Chicago Bears wide receiver DJ Moore could reunite with his former college coach.

The Bears are working to hire Chris Beatty to be their wide receivers coach, though it was not yet official Tuesday morning, a source confirmed. Beatty was Moore’s position coach for two of his three seasons at Maryland, including 2017, when Moore was the Big Ten wide receiver of the year.

Beatty would join the Bears after three seasons as the Los Angeles Chargers wide receivers coach, his first NFL stint after 15 years coaching in college.

He would replace Tyke Tolbert, whom the Bears fired along with offensive coordinator Luke Getsy and three other offensive staffers earlier this month. ESPN first reported the news of the expected hire.

Along with his time at Maryland, where he was promoted to associate head coach and co-offensive coordinator, Beatty was a position coach at Pittsburgh, Virginia, Wisconsin, Illinois, Vanderbilt, West Virginia, Northern Illinois and Hampton. He was the co-offensive coordinator and quarterbacks coach under Tim Beckman during his lone season with the Illini in 2012.

A former wide receiver at East Tennessee State and in the Canadian Football League, Beatty started his coaching career at the high school level.

He would be tasked with coaching a wide receivers group that Bears general manager Ryan Poles might look to bolster after it lacked production beyond Moore in 2023.

In his first season with the Bears and quarterback Justin Fields, Moore had a career-high 96 catches for 1,364 yards and eight touchdowns.

But Darnell Mooney had his worst season with 31 catches on 61 targets for 414 yards and a touchdown. And rookie Tyler Scott had a bumpy first season, finishing with 17 catches on 32 targets for 168 yards.

Beatty would be the fifth Bears coaching hire this offseason. They previously hired offensive coordinator Shane Waldron, quarterbacks coach Kerry Joseph and defensive coordinator Eric Washington and are hiring