Spirit Airlines is again considering a merger with rival ultra-low-cost carrier Frontier Airlines. This is the third time in two years that the two carriers have discussed merging.
Spirit rejected Frontier’s previous offer of $2.2 billion, calling it “inadequate and unactionable.” However, the airline may reconsider given its current financial situation. Spirit has filed for bankruptcy for the second time in two years and is under Chapter 11 protection.
Frontier Airlines, which faces similar challenges, including a struggling stock price and increased competition from legacy airlines, might benefit from a merger with Spirit. The company’s CEO, Barry Biffle, suddenly stepped down without explanation, and President James Dempsey will take over as interim leader.
The proposed merger would come at a critical time for both airlines, which are trying to navigate the changing landscape of the low-cost airline industry.
Source: https://thepointsguy.com/news/spirit-frontier-airlines-merger-report