August 15, 2022
Spirit Airlines’ Board Stays with Frontier Airline’s Offer
Airlines Industry

Spirit Airlines’ Board Stays with Frontier Airline’s Offer

DALLAS – Spirit Airlines (NK) says that its board has determined that Frontier’s (F9) new offer is superior to the all-cash offer by JetBlue (B6). NK’s shareholders are set to vote on June 30.

Frontier added an extra US$2 per share to the Spirit (NK) merger deal to compete with the B6 counteroffer. It also offered NK a higher breakup fee in the event regulators block the planned merger.

As such, NK’s board reiterated a unanimous recommendation that shareholders of the budget airline vote for the merger with F9 based on its “improved terms.” The news came today after B6 had increased its own offer to buy NK entirely in an all-cash deal.

As reported by cnbc.com and marketwatch.com, the ultra-low-cost carrier states that its “board believes a merger with Frontier is the most financially and strategically compelling path forward for Spirit stockholders and has a greater likelihood of closing,” adding that a merger with B6 would likely not “overcome regulatory objections.”

N383FR, Frontier Airlines Airbus A320NEO. Photo: Michael Rodeback/Airways

The Making of the Fifth-largest US Airline


In recent weeks, the competition for NK, based in Miramar, Florida, has intensified. In a time when new aircraft and pilots are in scarce supply, B6 claims that its contract would let it compete more effectively against major carriers and expand quickly.

It all boils down to either NK being acquired by B6 or a merger between F9 and NK, the latter of which would result in a massive budget carrier. Either way, the fifth-largest airline in the US would be formed by either.

Do you think NK’s shareholders will heed the board’s recommendation? Be sure to share your comments on our social media channels.

This is a developing story.


Featured image: N903NK, Spirit Airlines Airbus A320NEO. Photo: Michael Rodeback/Airways. Article sources: Spirit Airlines, wsj.com, cnbc.com.

Chief Online Editor
Chief Online Editor at Airways Magazine, AVSEC interpreter and visual artist; grammar geek, an avid fan of aviation, motorcycles, sci-fi literature, and film.

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