Discount carriers say joining forces will let them offer more low-cost fares in the U.S., Latin America and Caribbean.
Frontier is buying Spirit Airlines in a $2.9 billion cash-and-stock deal that will create the nation's fifth-largest carrier.
The companies said Monday that the transaction will provide more low-cost fares for more travelers to destinations in the U.S., Latin America and the Caribbean. Frontier Group Holdings and Spirit Airlines also anticipate $1 billion in annual consumer savings and are looking to expand their services with more than 350 aircraft on order.
In addition, Frontier and Spirit are looking to add more jobs. The companies foresee adding 10,000 direct jobs and thousands of additional jobs at their business partners by 2026. The tie-up is valued at $6.6 billion when accounting for the assumption of debt and other liabilities. "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," Spirit CEO Ted Christie said in a statement.The carriers may be in for a close look from antitrust regulators. The Biden administration has signaled a tougher line against big corporate mergers.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Frontier Airlines buying Spirit in $3B deal, creating nation's fifth largest carrierThe merger of these two budget airlines is expected to make both more competitive against larger rivals
Read more »
Frontier Airlines buying Spirit in $3B deal, creating nation's fifth largest carrierThe merger of these two budget airlines is expected to make both more competitive against larger rivals
Read more »
Frontier Buying Spirit, Creating Fifth Largest Airline in Budget Carrier Merger✈️ The parent company of the budget carrier Frontier is buying Spirit Airlines in a $2.9 billion cash-and-stock deal that will create the nation's fifth largest air carrier.
Read more »
Frontier and Spirit to merge creating fifth-largest airline in U.S. in $6.6 billion deal'I think what we can say is this combination makes a lot of sense,' SpiritAirlines CEO Ted Christie told SquawkCNBC on Monday, after the company announced a merger with Frontier.
Read more »
Spirit and Frontier Airlines plan to mergeSpirit and Frontier Airlines on Monday announced a $6.6 billion merger, a combination of low-fare carriers that would create America's fifth-largest airline.
Read more »