Frontier Airlines Renews Merger Offer to Spirit Airlines Amid Bankruptcy
Frontier Airlines has submitted a revised merger offer to Spirit Airlines, which is currently undergoing bankruptcy proceedings. The offer aims to rescue Spirit from bankruptcy and create a formidable low-cost carrier.
Frontier's proposal involves issuing new debt and common stock to fund the transaction. Bill Franke, Frontier's board chair, believes this offer "reflects a compelling opportunity" for Spirit stakeholders. It promises more value than Spirit's standalone plan and the potential to compete more effectively in the aviation market.
Initially, Frontier and Spirit planned to merge in 2022, but the deal was scrapped when JetBlue outbid Frontier. However, a federal court later blocked JetBlue's merger attempt with Spirit. In November 2024, Spirit filed for bankruptcy and implemented cost-cutting measures, including job reductions.
A merger between Frontier and Spirit would create the nation's fifth-largest airline, offering ultralow base fares and additional charges for services such as carry-on bags. Both airlines have recently introduced upgrades to compete with larger carriers. Frontier is adding first-class style seats, while Spirit offers premium "Go Big" bundles that include amenities like snacks, drinks, free bags, and priority check-in.