Jan. 29 (UPI) — Budget carrier Frontier Airlines announced on Wednesday that it has made another bid for fellow discount carrier Spirit Airlines, which is in bankruptcy, for an undisclosed sum.
Frontier, which is based in Denver, said it has met with Spirit’s board of executives since making its offer, which it claims is an upgrade from Spirit’s plans to emerge from bankruptcy. Frontier said its plan includes funding through the issuance of new Frontier debt and common stocks.
“This proposal reflects a compelling opportunity that will result in more value than Spirit’s standalone plan by creating a stronger low-fare airline with the long-term viability to compete more effectively and enter new markets at scale,” Bill Franke, chair of Frontier’s board of directors, said in a statement.
Frontier and Spirit first announced a merger deal in 2022, but JetBlue entered the fray with its own plan for Spirit, upending Frontier’s initial offer. The JetBlue-Spirit agreement, however, was blocked by a federal judge last year.
Since then, Spirit filed for bankruptcy, sending its stock tumbling nearly 60% at the time of the announcement.
“While we are pleased with the strong results Frontier has been able to deliver through the execution of our business strategy, we have long believed a combination with Spirit would allow us to unlock additional value creation opportunities,” Frontier CEO Barry Biffle said in a statement.
Spirit is expected to emerge from Chapter 11 in the first quarter with 200 job cuts and putting a handful of its Airbus passenger jets for sale.
Frontier and Spirit have struggled to compete against its market-priced competitors since the COVID-19 pandemic because of rising labor costs and inflation. It has since tried to offer business-class seating and other upscale perks to close the gap.
