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The ability of the carrier to compete on a national scale would be changed by the acquisition of Spirit. The photo is from JetBlue.
The ultralow-cost carrier is considering a merger with Frontier Airlines and has submitted a competing offer to the board of directors.
Under its proposal, JetBlue would acquire Spirit for $3.6 billion, or $33 per share in cash, which it said was a 50% premium to the merger agreement with Frontier announced in April. The offer was for about $2.9 billion in cash and stock.
The acquisition would be a game-changer for the airline, as it would allow it to compete on a national scale.
New destinations would be added to the network with the combined fleet of 455 aircraft with 312 aircraft on order.
While JetBlue and Spirit are different in many ways, we also have much in common, including a focus on keeping our costs low so we can profitably expand and offer an attractive alternative to the Big Four airlines, according to Hayes.
In a statement, the company acknowledged the proposal and said it would work with its financial and legal advisors to evaluate the proposal and make a decision on its course of action.
Frontier maintained that its offer was in the best interest of consumers and shareholders.
The Department of Justice is already challenging the partnership between American Airlines and Frontier.
The Frontier spokesman said that an acquisition of Spirit by JetBlue would lead to more expensive travel for consumers.
Business travel news.
JetBlue makes an offer for the airlines.
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