Low-cost giants pull out of US merger

Low-cost giants pull out of US merger

Almost six months later…

Shareholders of Spirit Airlines have withdrawn from merger with Frontier Airlines, paving the way for sale to JetBlue in the US

Nearly six months after announcing a merger that would create the fifth-largest airline in the United States, Spirit Airlines and Frontier Airlines, two of the country’s largest low-cost airlines, announced the withdrawal of the union, yesterday (27).

As anticipated by AERO Magazine, the deal lost steam after JetBlue made a more lucrative bid by Spirit, which tried to preserve the initial deal, for fear of non-approval from regulatory bodies, even more so than the government of US President Joe Biden, promised greater competition in the airline industry.

Even with this risk, the majority of Spirit’s shareholders no longer supported the advance with the merger with Frontier, putting an end to the negotiations and paving the way for the sale of the company to the company founded by David Neeleman, the same as the Brazilian Azul. Airlines.

While we are disappointed to have closed our proposed merger with Frontier, we are proud of the dedicated work of our team members on the transaction over the past few months.” according to Spirit CEO Ted Christie. “Spirit’s board of directors will continue our ongoing discussions with JetBlue as we seek the best way forward for Spirit and our shareholders.“.

If the acquisition of Spirit is confirmed, JetBlue will pay US$3.7 billion (R$19.4 billion), US$1 billion more than Frontier Airlines would have paid. “We are engaged in ongoing discussions with Spirit towards a consensus agreement as soon as possible.,” according to a statement released by the airline.

Source: Aero Magazine

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