Frontier Airlines Makes Aggressive Moves After Failed Spirit Bid

Earlier this summer, Frontier Airlines was due to merge with its budget airline Spirit Airlines, creating a modest giant of relatively cheap airfare.

However, Spirit’s shareholders rejected Frontier’s $19.99 per share offer for Spirit (SAVE) and instead the company was bought by JetBlue (JBLAU) at $33.50 a share, or $3.8 billion dollars, pending review by federal regulators. The merger would create the fifth largest airline in the world. Spirit to pay approximately $25 million in merger-related costs to Frontier (ULCC) who said he was “disappointed” with the voting result.


Be the first to comment

Leave a Reply

Your email address will not be published.