Frontier Airlines seeks merger with Spirit Airlines, again

[CRAIG NIGRELLI]

FRONTIER AIRLINES ANNOUNCED WEDNESDAY IT’S ONCE AGAIN ATTEMPTING TO MERGE WITH NOW-BANKRUPT SPIRIT AIRLINES.

FRONTIER AND SPIRIT FIRST TRIED TO MERGE IN 2022, BUT A JETBLUE AIRWAYS PROPOSAL TO ACQUIRE SPIRIT BROUGHT THAT DEAL TO A HALT.

JETBLUE’S PLANS TO ACQUIRE SPIRIT WERE BLOCKED BY A FEDERAL JUDGE LAST JANUARY, AND SPIRIT FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN NOVEMBER.

FRONTIER SAYS IT’S MET WITH SPIRIT’S BOARD AND EXECUTIVES SINCE IT FLOATED THE PROPOSAL THIS MONTH.

FRONTIER’S LEADERS TOLD SPIRIT EXECUTIVES IN AN EMAIL; THEIR PROPOSAL IS BETTER THAN SPIRIT’S OWN PLAN TO COME OUT OF BANKRUPTCY.

FRONTIER ALSO ARGUES IT’S IN A BETTER POSITION NOW THAN WHEN THEY FIRST ATTEMPTED TO MERGE WITH SPIRIT SEVERAL YEARS AGO.

HOWEVER, SPIRIT’S LEADERSHIP HAS REJECTED THE DEAL, CALLING IT “INADEQUATE AND INACTIONABLE.”

SPIRIT SAYS IT EXPECTS TO CLIMB OUT OF CHAPTER 11 BANKRUPTCY THIS QUARTER UNDER ITS OWN PLANS.

THE AIRLINE SLASHED COSTS RECENTLY BY ELIMINATING AROUND 200 JOBS AND SELLING SOME OF ITS AIRBUS PLANES.

SPIRIT HAS ALSO BEEN IMPACTED BY A PRATT AND WHITNEY ENGINE RECALL FORCING IT TO GROUND DOZENS OF JETS.

LOW-COST CARRIERS SUCH AS SPIRIT AND FRONTIER ARE STRUGGLING FOLLOWING THE COVID-19 PANDEMIC AND AS CONSUMERS OPT FOR TRIPS ON AIRLINES WITH ROOMIER AND MORE EXPENSIVE SEATS AS THEIR SALARIES HAVE RISEN.

BOTH FRONTIER AND SPIRIT ARE TRYING TO COMPETE BY OFFERING LOW FARES AND DOING AWAY WITH CANCELLATION AND CHANGE FEES FOR SOME TICKETS.

FRONTIER ALSO ANNOUNCED LAST YEAR IT WOULD BEGIN OFFERING A PREMIUM SEAT SECTION AT THE FRONT OF ITS AIRCRAFTS.

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