The Spirit airline and rival Frontier Group are discussing the merger again two years after two years, more than two years after two ultra -low -cost careers could not terminate trading.
On Wednesday, companies have revealed the discussion in security submission. Spirit, who applied for bankruptcy protection last year, said that the frontier refused to get an “inadequate, non -adaptable” acquisition offer, but would consider revised proposals to address the concerns.
Early this month, the frontier provided $ 400 million liabilities and 19 % Frontier shares to Spirit stakeholders, and evaluated transactions to about $ 2.16 billion.
The spirit stated that the offer was inferior to the two companies discussed before the bankruptcy application last year. He also sought a guarantee that the transaction was closed and the frontier would not leave.
“If you want to create a revised proposal that can actually be closed, we want to take into account the material defects, and we want to try to revitalize the stakeholders again.” I am.
Florida -based airlines signed a contract for cash and inventory with Frontier in 2022 to form a new no -flilling airline, but Jet Blue Airways jumped into all cache Outs. It caused the spirit bidding war.
Jet Blue ultimately won the acquisition match, but the transaction Discard Last year, a US judge blocked the concerns of anti -competition.
Spirit filed for bankruptcy in January after long -term economic losses, failure of merger efforts, and considerable debt. On Wednesday, the airline said it would complete the reorganization process in the first quarter.
Ultra -low -cost careers, which were excellent in providing unwanted travels with low costs, have struggled since the pandemic due to the rapid increase in operating costs and the rapid demand for insurance premiums. They are now forced to renew their business models to attract more and more wealthy travelers with more comfortable and large seats on airplanes.
Some analysts have advocated the merger of spirit and frontier and will be able to compete more effectively with bigger rivals.
Frontier stated that the merger was better due to long -term execution, and said that the combination was the fifth largest airline in the United States, creating at least 600 million dollars. The transaction claimed that it would provide a great value to Spirit stakeholders than the company's current restructuring plan.
We also expect a “quick” review of transactions from regulatory authorities.
“We are positioned to strengthen travel experiences with more options, deeper savings, and more reliable services,” said Barry Bifle, a Frontier CEO. Ta.
Frontier shares rose 6 % to $ 8.24.
