Frontier Airlines has made another attempt to merge with Spirit Airlines, as announced by the parent company of the Denver-based ultra-low-cost carrier. The proposed merger includes newly issued Frontier debt and common stock.
Frontier CEO Barry Biffle stated, "As a combined airline, we would be positioned to offer more options and deeper savings, as well as an enhanced travel experience with more reliable service."
However, Spirit Airlines, currently undergoing Chapter 11 bankruptcy restructuring, appeared to reject the offer. In a letter sent to Frontier on Tuesday and filed with the Securities and Exchange Commission on Wednesday, Spirit CEO Ted Christie and Chairman Mac Gardner described the proposal as "risky and costly" and "woefully insufficient financially." The proposal requires $350 million in equity from Spirit's bondholders.