Earlier this year, Spirit Airlines and Frontier Airlines announced that they would be combining into a brand new budget airline.
©Frontier Airlines
This would be great news for people trying to fly to Disney World, as both of the airlines are some of the busiest at Orlando International Airport. But, things got a bit more complicated when JetBlue Airways stepped in and made a bigger bid to buy Spirit. Spirit has rejected that offer, but JetBlue is not giving up.
JetBlue is now going hostile in its bid to buy Spirit Airlines, according to the Orlando Sentinel. The company has asked shareholders of Spirit to reject the proposed $2.9 billion acquisition by Frontier Airlines. Spirit has already rejected JetBlue’s offer of $3.6 billion twice now.
©GETTY IMAGES
Spirit Airlines is currently the number 2 busiest airline at Orlando International Airport. They have rejected the JetBlue bid saying that antitrust regulators are unlikely to approve the offer from the airline due to its alliance with American Airlines in the Northeast.
©Spirit Airlines
The CEO of JetBlue, Robin Hayes, said in a letter that “The Spirit Board based its rejection on unsupportable claims that are easily refuted.” Hayes also said that JetBlue is offering a significant premium in cash, more certainty, and more benefits for all Spirit investors.
Spirit Airlines
Shareholders of Spirit Airlines Inc. are supposed to vote on the Frontier bid on June 10th, according to the Orlando Sentinel. Spirit’s board supports the bid from Frontier, and reportedly anticipates that the deal with the airline will close in the second half of this year. The bid from Frontier Group Holdings Inc. would let Spirit shareholders keep 48.5% of the combined airline.
Seats on Spirit Airlines
We’ll keep an eye on the situation and bring you the latest news and updates, so stay tuned to DFB for more.
Click here to learn more about why Spirit rejected JetBlue’s offer
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