JetBlue set to acquire spirit Airlines to form the fifth largest airline in the US. The airline company is now pitching the merger as a low-fare challenger to the big air carriers in the United States.
JetBlue Set To Acquire Spirit Airlines to Form the Fifth Largest Airline in the US
JetBlue said on Thursday that it has finally reached an agreement to purchase the discount airline, spirit airlines for $3.8 billion. The reported deal would make JetBlue the fifth largest airline in the US and therefore increase the reach of the budget carrier and its ability to compete with other big players in the industry, the company noted in a press release.
Spirit Shareholders Rejected A Deal with Frontier Airlines
The deal is coming after shareholders of spirit rejected an acquisition agreement with Frontier Airlines. The rejection was a result of the culmination of a months-long fight by JetBlue to break up the Frontier-Spirit agreement that was announced back in February. JetBlue airlines revised its offer many times in an effort to try to sweeten the deal and also pry Spirit away from Frontier.
The press release said that JetBlue and Spirit airlines combined will now have 77 million customers and also the merger will give JetBlue additional and well over 1,700 new daily flights. The deal however needs approval from stakeholders of Spirit and antitrust regulators. JetBlue airlines now expect the deal to close in no less than the first half of 2024.