JetBlue agrees to buy Spirit for $3.8 billion, in a deal that would create the 5th-biggest US airline

If the deal goes through, it will make it the fifth-biggest airline in the US.

The company said it would pay $33.50 per share in cash. There will be a prepayment of $2.50 per share in cash and atick fee of 10 cents per share per month until the deal is completed, according to the statement.

"We will continue to advance our goal of disrupting the industry to bring down fares from the Big Four airlines," said Robin Hayes, the CEO of JetBlue.

In February this year, the merger agreement between Frontier Airlines and Spirit Airlines was terminated. It's the end of the competition between the two low cost airlines.

Over the last few months, there has been a bidding war between the two airlines. After it agreed to a $2.9 billion merger with Frontier, Spirit turned down a $3.6 billion offer from JetBlue. The board of the company said that the offer was unacceptable.

The Wall Street Journal said that the airline wanted to take over the company. People with knowledge of the matter told The Journal that the planned tender offer was to put pressure on the airline's management to engage in merger negotiations.

Insider was told that it was "pleased" that the deal didn't happen.