ICYMI: Frontier Set to Buy Spirit Airlines in Multi-Million-Dollar Merger
Today, Frontier Airlines announced its plan to purchase its budget-friendly rival airline, Spirit Airlines. The deal is valued at $2.9 billion in cash and stock, according to widely published reports. With the hopes of saving $1 million dollars in the purchase, Frontier would become the fifth largest airline carrier in the country.
Dubbing themselves now as “America’s Most Competitive Ultra-Low Fare Airline,” Frontier set some incredibly high goals with this new venture, according to an email sent to Spirit guests today by Spirit Airlines President and CEO Ted Christie. In the email, Christie stated that the “combined airline is expected to: Deliver $1 billion in consumer savings; Offer more than 1,000 daily flights to 145 destinations in 19 countries, across complementary networks; and Expand with more than 350 aircraft on order to deliver more ultra-low fares.”
Spirit Airlines, Frontier to merge in $2.9 bln deal https://t.co/rZojeT5DO8 pic.twitter.com/dWwjvpHjNV
— Reuters (@Reuters) February 7, 2022
In the email, Christie added that the combined airline hopes to increase ultra-low fares access to underserved communities not only in the United States but also in the Caribbean and Latin America.
A New Frontier Ahead
In the deal, “Frontier shareholders will own 51.5% of the combined airline, and Spirit stockholders will own 48.5%. The transaction is expected to close in the second half of the year. It still needs approval from Spirit shareholders,” according to a CBS article published today.
The planned merger of Frontier Airlines and Spirit Airlines is almost sure to draw tough scrutiny from the Biden administration.
Could it be the next big antitrust fight? Read our @dealbook newsletter. https://t.co/jISrIduBoT
— The New York Times (@nytimes) February 7, 2022
Prior to completion of the purchase, many already pointed out today that the deal will most likely receive scrutiny from antitrust regulators at the federal level. Still, due to the pandemic’s enormous impact on airlines, others believe that Frontier and Spirit may receive a bit of understanding due to their financial losses over the past two years.
Our best deal yet. @FlyFrontier and @SpiritAirlines are combining to create America’s most competitive ultra-low fare airline. Learn more: https://t.co/yjg4wqhLWf
— Frontier Airlines (@FlyFrontier) February 7, 2022
Of course, we will continue to watch developments on this story and its implications on travel to Disney destinations.
Feature Image Credit: @FlyFrontier/Twitter