JetBlue Buys Spirit Airlines for a WHOPPING Amount!
A lot of travel news happening this week! Just days ago Frontier and Spirit Airlines Cancel their merge deal after failing to gain the support of Spirit’s shareholders.
Today, JetBlue Buys Spirit Airlines for $3.8 Billion making it the nation’s fifth largest airline. Read on for all we know!
Spirit and Frontier Cancel Deal
Earlier this week Spirit Airlines announced that the merger deal with Frontier Airlines would not take place.
Spirit and Frontier initially entered into their merger agreement on Feb. 7. The airlines stating that as a combined budget airline, they’d be the fifth-largest U.S. carrier.
The company would offer more than 1,000 flights per day competing against the higher-cost major airlines. The merger would also unlock $500 million in annual operating cost efficiencies.
The failure of the merger came after JetBlue persuaded Spirit investors to reject the deal with Frontier.
JetBlue Buys Spirit
Just announced today, JetBlue agrees to buy Spirit Airlines for $3.8 billion making them the nation’s fifth largest airline (if approved by U.S. regulators).
The agreement comes one day after the merge between Spirit and Frontier Airlines fell apart. Spirit encouraged shareholders to approve Frontier’s lower offer, stating that antitrust regulators are more likely to reject JetBlue’s offer.
JetBlue will pay $33.50 per share in cash for Spirit. This includes a prepayment of $2.50 (cash per share) when approved by Spirit stockholders.
The combined airline will be based in New York and boast a fleet of 458 aircrafts. JetBlue anticipates $600-700 million in annual savings once the transaction is complete.
What Happens Next?
First, the merge requires regulatory approvals and approval from Spirit’s stockholders.
The entire process process is anticipated to be completed by the first half of 2024.
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Article Sources: WESH News and Travel Weekly
Feature Photo: Spirit Airlines