Frontier Airlines announced Wednesday, Jan. 29, that it is once again attempting to merge with now-bankrupt Spirit Airlines. Frontier and Spirit Airlines first tried to merge in 2022, but a JetBlue Airways proposal to acquire Spirit prevented that deal.
What happened during first attempt to acquire Spirit?
A U.S. federal judge blocked JetBlue’s plans to acquire Spirit in January 2024. In November, Spirit filed for Chapter 11 bankruptcy protection.
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Frontier said it met with Spirit’s board and executives since it floated the proposal earlier this month. Frontier leaders told Spirit executives that the merger proposal is better than Spirit’s plan to reemerge from bankruptcy.
Frontier also argued it is in a better position now than when it first attempted to merge with Spirit several years ago.
How did Spirit take the proposal?
Spirit’s leadership rejected the deal, calling it “inadequate and inactionable.”
The airline said it expects to climb out of bankruptcy this quarter.
Spirit recently slashed costs by eliminating around 200 jobs and selling some Airbus planes. It also faced challenges during a Pratt & Whitney engine recall, which grounded dozens of jets.
Both Frontier, Spirit are struggling
Low-cost carriers like Spirit and Frontier are struggling post-pandemic.
The competing airlines offer low fares and have done 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.
