Airline merger: Frontier sweetens offer for Spirit Airlines - Albuquerque Journal

Airline merger: Frontier sweetens offer for Spirit Airlines

Frontier Airlines on Friday added more cash and a larger breakup fee to its offer to buy Spirit Airlines, and the Spirit board repeated its preference for Frontier over a rival bid by JetBlue Airways.

Frontier added $2 per share to its previous offer, boosting it to $4.13 in cash plus 1.9126 shares of Frontier for each Spirit share.

The Denver-based airline also raised the amount it would pay Miramar, Florida-based Spirit if antitrust regulators stop the deal — from $250 million to $350 million — matching JetBlue’s proposed breakup fee.

Spirit said that, given the sweetened terms, its board reiterated its unanimous recommendation that shareholders approve the Frontier offer at a special meeting next Thursday.

JetBlue said its proposal remains better than Frontier’s with a higher value, more cash, “more certainty, and more regulatory protections.”

Frontier’s move was the latest gambit in a fight between Frontier and JetBlue to see who gets the nation’s largest discount airline. On Monday, New York-based JetBlue raised its all-cash offer to $33.50 per share, or more than $3.6 billion.

At current value, JetBlue’s proposal is worth more. JetBlue proposes to buy all Spirit shares and reconfigure the budget airline’s planes into JetBlue’s less-cramped layout.

Frontier’s stock-and-cash offer would give Spirit shareholders 48.5% of the new, combined airline — which does not yet have a name. That means investors willing to hold the stock could come out ahead if the shares rise enough in price.

Spirit’s board has cited another reason for favoring Frontier, which, like Spirit, is an ultra-low-cost carrier that charges rock-bottom fares but also many extra fees. Spirit has maintained that antitrust regulators are very unlikely to let JetBlue buy Spirit and remove its low fares from the market.

JetBlue disputes Spirit’s conclusion. It bypassed Spirit’s board and appealed directly to Spirit shareholders to reject the Frontier offer.

Frontier and JetBlue agree on one thing: Both say that buying Spirit would make them a stronger competitor to the nation’s four leading airlines, American, Delta, United and Southwest.

Home » News » Nation » Airline merger: Frontier sweetens offer for Spirit Airlines


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
City: Coronado Park is officially closed
ABQnews Seeker
Coronado Park, home to one of ... Coronado Park, home to one of Albuquerque’s largest and most visible unsanctioned homeless encampments, has officially closed. Albuquerque city officials confirmed Wednesday afternoon that ...
2
Third New Mexico film partner to be based in ...
ABQnews Seeker
California-based 828 Productions will relocate its ... California-based 828 Productions will relocate its headquarters to Las Cruces.
3
NM seeks poll workers ahead of November 8 general ...
2022 election
'The more eyes on the election ... 'The more eyes on the election the better,' notes a county clerk
4
NM revenue explosion continues, as lawmakers weigh next steps
ABQnews Seeker
New Mexico's revenue jackpot shows no ... New Mexico's revenue jackpot shows no signs of slowing down, with inflation-related consumer spending, strong wage growth and increased oil production propelling the state's ...
5
Bernalillo County Commission approves Santolina requests
ABQnews Seeker
Second-level plan calls for certain industrial ... Second-level plan calls for certain industrial uses on 630-acre portion of site west of ABQ
6
Los Ranchos approves short-term freeze on developments
ABQnews Seeker
Move will not affect projects that ... Move will not affect projects that stirred residents to protest in recent weeks
7
Colorado River system at a 'tipping point'
ABQnews Seeker
Interior: Big water reductions required; New ... Interior: Big water reductions required; New Mexico spared cuts for now
8
Pedestrian in critical condition after crash
ABQnews Seeker
A pedestrian was transported to University ... A pedestrian was transported to University of New Mexico Hospital with severe head trauma after he was struck by a vehicle Tuesday, Albuquerque police ...
9
Medical investigator rules Baldwin set shooting an accident
ABQnews Seeker
Report notes 'absence of obvious intent ... Report notes 'absence of obvious intent to cause harm or death'
10
Council leaves Planned Parenthood funding intact
ABQnews Seeker
Council votes to keep previously approved ... Council votes to keep previously approved allocation of $25,000