Frontier and Spirit Airlines, Announce $6.6 Billion Merger.
CNBC reports that Frontier Airlines and Spirit Airlines, the United States' two largest low-cost airlines, have agreed to a $6.6 billion merger.
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CNBC reports that Frontier Airlines and Spirit Airlines, the United States' two largest low-cost airlines, have agreed to a $6.6 billion merger.
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The move would reportedly create the fifth-largest airline in the U.S. .
According to CNBC, the merger would give Frontier Airlines a controlling 51.5% stake in the combined company.
According to CNBC, the merger would give Frontier Airlines a controlling 51.5% stake in the combined company.
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, Ted Christie, President and CEO of Spirit, via CNBC.
The deal was approved by the boards of both companies and would be the first U.S. airline merger since Virgin America and Alaska Airlines joined up in 2016.
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CNBC reports that Frontier Chairman Bill Franke said the merger, “will create America’s most competitive ultra-low fare airline for the benefit of consumers.”.
CNBC reports that Frontier Chairman Bill Franke said the merger, “will create America’s most competitive ultra-low fare airline for the benefit of consumers.”.
The new name of the combined carrier has yet to be announced.
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Pending regulatory and shareholder approval, the transaction is expected to close in the second half of 2022.
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Pending regulatory and shareholder approval, the transaction is expected to close in the second half of 2022.
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CNBC points out that the news comes as airlines are still trying to recover from the effects of the pandemic.
