Spirit Airlines Turns Down Second Merger Proposal from Frontier
By:
Pilotcenter.net
Spirit Airlines has once again turned down a merger proposal from Frontier Group, with concerns over financial conditions being the primary reason behind the decision. Frontier, in a statement released on January 29, 2025, expressed their belief that a merger between the two airlines would bring substantial benefits to Spirit's financial stakeholders compared to Spirit's current standalone restructuring plan. Barry Biffle, CEO of Frontier, highlighted the potential for increased options, cost savings, and an enhanced travel experience that a merger would offer.
Frontier had engaged in discussions with Spirit's board of directors, management team, and financial stakeholders to outline the advantages of the proposed merger. Bill Franke, Chair of Frontier’s Board of Directors, emphasized the strategic importance of creating a stronger low-cost carrier capable of competing effectively in new markets.
Despite these efforts, Spirit announced in a regulatory filing on the same day that they had rejected the offer. Spirit’s President and CEO, Ted Christie, along with Chairman McIntyre Gardner, acknowledged the discussions but indicated that the proposal did not meet the necessary criteria for acceptance.
The history between Spirit and Frontier dates back to 2022 when initial merger talks took place. However, these discussions were halted when JetBlue made an offer to acquire Spirit, a deal that was eventually accepted by Spirit. Following the DOT's rejection of the JetBlue-Spirit merger in 2024, talks between Spirit and Frontier resumed, only to collapse in November of the same year.
In November 2024, Spirit entered Chapter 11 bankruptcy proceedings, citing issues related to their Pratt & Whitney geared turbofan engines and the failed JetBlue merger. Despite the challenges, Spirit remains open to constructive dialogue with Frontier in the hopes of reaching a mutually acceptable agreement in the future. Stay tuned to Pilotcenter.net News for further developments on this ongoing saga in the airline industry.
