Spirit Airlines has been a competing carrier corporation throughout the United States since initially being founded by Ned Homfeld in 1983. With its purpose of being known for its low-cost flights, Spirit had quickly become the go-to airline for family and friend travel trips on a budget. However, this option might soon come to an end as the business recently announced that their competing carrier, JetBlue Airways, has agreed to buy out the airline for a total of $3.8 billion. If this specific merger follows through as planned, it will completely remove Spirit Airlines from the market placing the collaborated branch on a swift path to developing North America’s fifth-largest airline.
Representatives of JetBlue stated how the airline will pay $33.50 in cash per share for their competing company, on top of a 10-cent per month ticking fee and a $2.50 share prepayment starting in 2023 and concluding when the deal shuts. JetBlue CEO Robin Hayes vocalized in an interview this past Thursday afternoon, “We have two priorities: one is to get this closed and get the airline integrated and build a bigger JetBlue and to run a reliable operation in the meantime.” Hayes also claimed that JetBlue HQ will remain in New York even with Spirit being based out of Fort Lauderdale, Florida — “We have a long-term commitment to New York and we are going to stay here.”
CEO of the International airline Frontier, Barry Biffle, publicized how they competed with JetBlue to purchase Spirit, before stepping back when they believed their last offer was their “best and final.” Biffle explained his reasoning for backing down from the buyout on an earning call this past Wednesday evening: “Rather than overpay for Spirit, the board prioritized the interest of Frontier, our employees, and our shareholders… Should a JetBlue-Spirit merger occur, we believe Frontier will largely inherit the keys to the low-cost kingdom in the United States.”