The boards of both Spirit Airlines and Frontier Airlines have approved a deal for the two carriers to merge. The new airline, which will be the fifth-largest in the US, will be controlled by Frontier Airlines with Spirit holding the remaining 48.5%.
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How will this merger affect your travel plans?
– The boards of both Spirit Airlines and Frontier Airlines have approved a deal for the two carriers to merge.
– The new airline, which will be the fifth-largest in the U.S., will be controlled by Frontier Airlines with Spirit holding the remaining 48.5%.
– The value of the deal is $6.6 billion and is structured with 1.9126 shares of Frontier plus $2.13 in cash for each Spirit share owned.
– The airlines anticipate the deal to close in the second half of the year.
– Upon completion of the merger, Frontier Airlines plans to continue its aggressive expansion strategy.
– Spirit Airlines is currently in talks with Airbus to purchase more A321neo aircraft.
– In a statement, the vice president of the United States praised efforts by both companies during his time as vice president.
– The combined fleet will consist of 162 jet aircraft, including 72 Airbus A320s.
– Once closed, the airlines will operate under the Frontier Airlines name with Spirit’s CEO remaining in his position.
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– The deal is valued at $6.6 billion and includes 1.9126 shares of Frontier for each Spirit share owned.
– Both carriers decided to merge because they are both known for low fares and market share has increased considerably since 2013 when the airlines had 2.8% of revenue passenger miles flown in the U.S.
– Frontier currently has a fleet size of 73 Airbus jet aircraft and plans to add 24 more jets by 2020.
– In premarket trading, shares of Spirit Airlines rose 11 percent while Frontier Airlines fell nearly 3 percent.
– Once the deal is complete, Frontier plans to grow its fleet by adding 24 A320neo jet aircraft by 2020.
– Each airline will maintain its current name and branding until the transaction is finalized.
– The two carriers serve high growth leisure and vacation destinations with an average age of 7 years for the combined fleet.
– A new operating certificate will be issued from the FAA.
– Frontier Airlines currently uses Airbus’s A320 aircraft extensively, while Spirit operates a fleet of all A321s.
– In early morning trading Monday, shares of both airlines rose after the deal was announced.
– As part of the agreement, Frontier will take over the operating certificate for both airlines.
– In a statement, the vice president of the United States praised efforts made by both carriers during his time as vice president.
– Under this agreement Frontier will acquire Spirit and operate it under Frontier’s existing name and branding.
– The new airline will be the fifth largest in the US and it will be controlled by Frontier with Spirit holding the remaining 48.5%.
– The new company will have a fleet size of 162 jet aircraft, including 72 Airbus A320s.
– According to multiple reports and sources familiar with the merger, it is expected to happen in the second half of 2019.
– Once closed, Frontier plans to continue its aggressive growth strategy.
– The carriers will take over the operating certificate for both airlines and they will maintain their current names until the transaction is finalized.
– Both airlines serve high growth markets and destinations with an average age of 7 years for the combined fleet.
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