Frontier Airlines Pursues Merger with Spirit Airlines Again
Frontier Airlines has made a renewed offer to merge with Spirit Airlines, which is currently under bankruptcy protection. The CEO of Frontier expresses confidence in the potential for value creation through the proposed merger.
With Spirit Airlines currently in bankruptcy, Frontier Airlines has announced a new proposal to merge with them. This comes after a previous unsuccessful attempt to merge with JetBlue. Frontier is touting the merger as a way for both airlines to benefit from significant operational synergies.
Frontier’s Proposal
Frontier has stated that they have made a new offer to merge, although a specific dollar amount has yet to be disclosed. In an effort to regain momentum after JetBlue’s successful bid for Spirit, this updated proposal aims to alleviate concerns that the ultra-low-cost model will be adversely impacted.
Compelling Opportunity
Barry Biffle, the CEO of Frontier Airlines, expressed optimism about the merger’s potential, emphasizing opportunities for additional value creation that a merger with Spirit would present. He noted that such a move would not only enhance travel options but also provide cost savings and improved reliability for customers.
Response from Spirit Airlines
In a recent letter, Spirit Airlines’ leadership, including CEO Ted Christie and Chairman Mac Gardner, described Frontier’s proposal as “inadequate and unactionable”, yet they are open to reviewing a new proposal, indicating a willingness to engage in discussions about the future of the airline amidst its current challenges.
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