Spirit Rejects New Merger Offer from Frontier
Frontier Airlines is trying once again to merge with Spirit Airlines, just three years after the failed attempt at a merger between the two companies.
Frontier is willing to pay $2.1 billion in stock and cash for Spirit, as reported by NYT. The deal would unite the nation’s two largest budget carriers.
However, bankrupt Spirit said it had rejected the offer. Back in 2022 Frontier had offered $2.9 billion for a similar deal.
Spirit executives called Frontier’s proposal “risky and costly, with no certainty as to either timing or outcome” and “woefully insufficient financially.” But they said they would be willing to consider a better offer.
The previous merger deal between Frontier and Spirit was derailed by a higher JetBlue Airways all-cash offer. JetBlue’s planned acquisition of Spirit was then blocked by a federal judge last year. Following that decision, Spirit filed for bankruptcy protection in November.
Spirit expects to exit Chapter 11 bankruptcy this quarter and has a February 13 court date to finalize its plan.
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