JetBlue could soon bring passenger service back to LaGuardia Airport’s historic Marine Air Terminal after winning an auction for gates previously operated by the bankrupt Spirit Airlines. On Monday, JetBlue’s $58.5 million bid secured 22 arrival and departure slots at the landmarked Art Deco terminal, vacant since Spirit moved out in May amid bankruptcy proceedings, as first reported by CNBC. The transaction would increase the carrier’s slot allocation at LaGuardia from 31 combined daily arrival and departure rights to 53. A hearing is scheduled for Thursday, followed by a final sale order expected no later than Aug. 5.
Designed by architectural firm Delano & Aldrich, the Marine Air Terminal opened in 1940 amid a boom in commercial air travel. Even with just six gates, the terminal is regarded as one of the city’s finest examples of Art Deco architecture, anchored by its two-story circular interior, according to the Landmarks Preservation Commission, which landmarked the interiors in 1980.
In its designation, the LPC described the terminal as “the only surviving American airport terminal dating from ‘the Golden Age of the Flying Boat,’” when transoceanic passenger flights were made aboard hulking Pan American Clipper ships that competed with ocean liners in providing luxury service.
The interior is characterized by striking geometry, marble paneling, and fine proportions, which serve as a fitting backdrop for the huge “Flight” mural, painted by artist James Brook between 1940 and 1942. The mural is the largest and only surviving mural commissioned by President Franklin D. Roosevelt’s Works Progress Administration, according to Living New Deal.
Marine Air Terminal was also added to the National Register of Historic Places in 1982.
That designation has helped preserve the structure while the rest of LaGuardia Airport has undergone an $8 billion transformation. The airport, once likened to a “third world country” by then-Vice President Joe Biden, was ranked the best airport in the United States by Forbes Travel Guide in October 2024.
Spirit Airlines began partially operating out of the terminal in April 2021 before moving all of its LaGuardia operations from Terminal C to the Marine Air Terminal the following March, according to Business Insider.
In May, Spirit filed for bankruptcy and immediately ceased operations, setting the stage for this week’s auction. JetBlue’s $58.5 million bid ultimately narrowly outpaced Frontier Airlines’ $57.5 million offer, according to Gothamist.
Frontier’s bid will serve as a backup if JetBlue’s offer does not go through, but the sale is expected to be approved. The U.S. Bankruptcy Court for the Southern District of New York will hold a hearing Thursday to consider approval of the sale.
A final sale order is expected no later than August 5. The purchase is also subject to regulatory approval from the Federal Aviation Administration.
If the deal goes through, JetBlue would be able to operate up to 12 additional daily round trips at the airport. The airline is still determining how it will use the slots, according to a statement reported by Travel Weekly. They also said any expansion at LaGuardia tied to the new slots would begin “in 2027.”
“We’re currently evaluating how best to utilize these slots as we consider opportunities to bring more of JetBlue’s competitive, customer-focused service to New York,” JetBlue said.
According to The Points Guy, operating out of the Marine Air Terminal could provide JetBlue with “much-needed cost savings” to support its expansion at the airport. In recent years, JetBlue has scaled back its LaGuardia operations due to costs, focusing much of its New York service at John F. Kennedy International Airport.
The Marine Air Terminal could offer the airline lower upkeep costs while providing an opportunity to establish the landmarked structure as a dedicated “JetBlue terminal” at LaGuardia, industry analyst Robert Mann told The Points Guy.
For now, renovations of the terminal’s non-landmarked 1980s-era boarding areas and gates will continue as they are modernized to meet increased passenger demand. The original terminal structure will remain intact.
In a statement to Gothamist, Port Authority spokesperson Halimah Elmariah said the auction reflects LaGuardia’s critical role in the region’s aviation industry.
“We are pleased the auction has concluded and look forward to working with JetBlue as it expands its operations at LaGuardia,” Halimah Elmariah told the website.
“The Port Authority remains committed to the long-term future of Terminal A, and plans to move forward with preserving the landmarked Marine Air Terminal while dramatically upgrading the attached non-landmarked 1980s-era concourse and boarding area.”
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