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Spirit Airlines has once again turned down an acquisition proposal from Frontier Airlines, opting to continue with its own restructuring plan despite being in bankruptcy. Spirit rejected the offer, citing that it would "deliver less in value to the Company's stakeholders than contemplated by the Company's existing plan of reorganization." In contrast, Frontier argues that a merger would have created more value than Spirit’s standalone plan.
The history of potential mergers between these two ultra-low-cost carriers dates back to 2022. At that time, a merger could have formed the fifth-largest airline in the United States, challenging major players like American Airlines and Delta Air Lines. The initial offer involved a $2.9 billion deal where Frontier stakeholders would hold a 51.5% stake and Spirit 48.5%. However, JetBlue's competing bid complicated matters.
JetBlue offered $3.6 billion for Spirit but faced opposition from Spirit's Board of Directors who favored Frontier's proposal as "the most financially and strategically compelling path forward." Despite improved offers from both sides, regulatory concerns led to the eventual termination of both merger attempts.
