Spirit Airlines has been in the news lately for its merger deals. As per the recent information, JetBlue is trying to merge with Spirit Airlines to become the fifth-largest carrier in the United States. But, according to Spirit Airline’s CEO Ted Christie, the carrier does not want this merger. Just a few months back in February 2022, Spirit Airlines planned a deal with Frontier Airlines for their union. According to this deal, Frontier Airlines will own 51.5% of the total share making it the parent company. On the other hand, Spirit Airlines will own the remaining 48.5% to become the second partner. In this blog, we will discuss why different aviation companies are trying to merge with Spirit Airlines and what will be the effect of this alliance on the customers.
JetBlue has offered a value of $34.15 per share for Spirit Airlines where as Frontier Airlines gave an offer of $22.03 per share. Ted Christie, the current CEO of Spirit Airlines has denied the news of the merger. According to him, Spirit Airlines Booking still stands still on the previous deal made with Frontier Airlines. He has also asked the board members to be with Frontier but the decision will be based on votes from all the members.
Why Other Carriers Want to Merge With Spirit Airlines
Spirit Airlines is undoubtedly one of the fastest growing ultra low cost carriers in the United States. The business model of the company attracts many customers making it a profitable enterprise. Spirit Airlines serves a large number of destinations. If an airline partners with Spirit, they’ll be able to use 85+ destinations of the airline along with more the 180 aircraft. Spirit Airlines is known for its youngest fleet which means all the planes are new and may not need abandoning for years. Keeping all these benefits aside, the biggest advantage of acquiring Spirit Airlines is that when Frontier Airlines or JetBlue partners with Spirit, they will become the fifth largest airline in the United States giving a major edge to the company.
As of now, both Frontier Airlines and JetBlue have offered to merge with Spirit Airlines Flights. It will now be a tough decision for Spirit’s CEO Ted Christie as well as other board members. It will be interesting to see what benefits will the passengers have after the merger. We just hope that after the alliance is complete, the passengers get the best of both the carriers.