Frontier Airlines announced it is buying Spirit Airlines in an attempt to create what would be the fifth-largest airline in the market.
The deal, which both airlines’ boards of directors have approved, will have Frontier purchase Spirit in an estimated $2.9 billion cash-and-stock sale and will lead to the company’s tie-up being valued at $6.6 billion when accounting for debt and other liabilities.
“We are thrilled to join forces with Frontier to further democratize air travel,” said Ted Christie, Spirit Airlines CEO and president, in a press statement. “This transaction is centered around creating an aggressive ultra-low fare competitor to serve our Guests even better, expand career opportunities for our Team Members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public. We look forward to uniting our talented teams to shake up the airline industry while also continuing our commitment to excellent Guest service.”
RUSSIA THREATENS POWER GRIDS IF BIDEN MOVES IN UKRAINE
“This combination is all about growth, opportunities and creating value for everyone — from our Guests to our Team Members to the flying public at large,” said Mac Gardner, chairman of the board of Spirit. “We’re a perfect fit — our businesses share similar values, including our longstanding commitment to affordable travel. At the same time, we have complementary footprints and fleets, including one of the youngest and greenest fleets worldwide.”
The merging of the two airlines will allow them to offer more than 1,000 daily flights in 19 countries and expand the airlines’ fleet with more than 350 aircraft while maintaining lower fares, the press release says.
The merged airlines also intend to add 10,000 direct jobs and thousands of additional positions with business partners by 2026.
Existing Frontier shareholders will own a 51.5% majority share in the company, while Spirit shareholders will account for approximately 48.5% of all shares.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
It is unclear if the companies will face any antitrust scrutiny. The Federal Trade Commission and Justice Department announced on Jan. 18 that they were working together to update the U.S. government’s merger guidelines.
