Frontier and Spirit Merger Deal Announced
Frontier Airlines and Spirit Airlines have agreed to merge in a deal valued at $6.6 billion. The deal would create the fifth-largest airline in the country. The merger gives Frontier Airlines a 51.5% controlling stake in the combined airline.
“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 Miramar, Fla.-based Spirit, said in a statement announcing the deal. Frontier Chairman Bill Franke will chair the combined company, which he said “will create America’s most competitive ultra-low fare airline for the benefit of consumers.”
The boards of both companies approved the deal over the weekend, CNBC reports.
The companies didn’t announce the new name of the combined carrier, the CEO or location of the airline’s headquarters.
It is also not clear that the merger will be approved by federal antitrust regulators.