Frontier Airlines has presented a renewed merger proposal to Spirit Airlines, which is currently grappling with bankruptcy. Frontier executives argue that their plan is more advantageous than Spirit's projected path to emerge from bankruptcy, emphasizing the urgency of the situation.
Frontier Airlines has once again proposed a merger with its struggling rival, Spirit Airlines, which is currently undergoing bankruptcy proceedings. Frontier Airlines announced in a statement that it has engaged in meetings with Spirit's board of directors and top executives since making its initial proposal earlier this month.
Frontier executives, in an email sent to their Spirit counterparts this week, asserted that their proposed plan is superior to Spirit's own strategy for emerging from bankruptcy. 'We continue to believe that under the current standalone plan, Spirit will emerge highly leveraged, losing money at the operating level, and this would not be a transaction we would pursue,' wrote Frontier Chairman Bill Franke and CEO Barry Biffle in a Tuesday email addressed to Spirit Chairman Mac Gardner and CEO Ted Christie. 'As a result, time is of the essence.' However, Christie and Gardner responded by rejecting the deal, characterizing the terms as 'inadequate and unactionable,' according to a letter revealed in a securities filing on Wednesday.Spirit Airlines anticipates exiting Chapter 11 bankruptcy protection this quarter. The airline has implemented cost-cutting measures recently, including the elimination of approximately 200 jobs and the sale of some of its Airbus aircraft. Spirit has also faced significant challenges due to a Pratt & Whitney engine recall that grounded numerous jets. Both Frontier and Spirit have been actively working to revamp their business models, which were previously characterized by low fares and fees for add-on services ranging from seat assignments to cabin baggage. Both airlines have started to incorporate perks into ticket bundles and offer some tickets with bundled amenities. Frontier, for instance, announced its intention last year to introduce a premium section at the front of its aircraft
AIRLINES MERGER BANKRUPTCY FRONTIER AIRLINES SPIRIT AIRLINES
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Frontier Airlines Seeks Second Merger Attempt with Bankrupt Spirit AirlinesFrontier Airlines is attempting to acquire the bankrupt Spirit Airlines, offering newly issued debt and common stock. This comes after a previous failed attempt in 2022 when JetBlue outbid Frontier. The proposed merger faces scrutiny due to the potential impact on airfares and competition within the budget airline industry.
Read more »
Frontier Airlines Proposes Merger with Bankrupt Spirit AirlinesFrontier Airlines has made a new offer to merge with bankrupt Spirit Airlines, aiming to create a larger low-cost carrier and rescue Spirit from financial difficulties. Spirit has already rejected the offer, calling it insufficient compared to previous proposals and shareholder expectations. This proposal follows a failed merger attempt in 2022 when JetBlue entered the picture with a higher bid. However, a federal judge blocked Spirit's merger with JetBlue last year.
Read more »
Frontier Airlines proposes merging with fellow budget carrier Spirit — againFrontier Airlines said Wednesday it has again proposed combining with Spirit Airlines, which is in bankruptcy.
Read more »
Frontier makes a second bid for Spirit with budget airlines strugglingFrontier Airlines is attempting for a second time to merge with the now bankrupt Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle.
Read more »
The Arctic Is the Last Frontier, Trump Could Make It the Lost FrontierDan Ritzman is the director of conservation at the Sierra Club.
Read more »
Frontier Airlines' 'New Year, New Adventure' Contest Offers a Year of Free FlightsFrontier Airlines is giving one lucky winner the chance to travel the world with a year's worth of free flights. The 'New Year, New Adventure' promotion includes 24 round-trip tickets, each worth $250, and can be redeemed for flights to various destinations in the Caribbean and Mexico.
Read more »