As Low-Cost-Carrier Wars Continue as 2 Join Forces

Amid an increasingly crowded airline landscape, Spirit Airlines and Frontier Airlines have announced a definitive merger agreement under which they will combine to "create America's most competitive Ultra-low fare airline."

The arms race of low cost carriers has accelerated over recent years, ultimately resulting in the designation of "ultra-low-cost-carriers" to distinguish those who continue to carve operating costs to the bone. 

The merger comes after a bid of nearly $3 billion by Spirit for its relative competitor, in what they hope will grow to strengthen their foundation in the market. The resulting company will serve destinations across the United States, Latin America and the Caribbean, with a promised mix of "major cities as well as underserved communities."

For consumers, they promise that an annual savings in the range of $1 billion is in the realm of possibility, as well as an expansion of their fleet to 350 aircraft. The combination of two frequent flyer programs and networks will allow more reliable service with 1,000+ daily flights to nearly 150 destinations in almost 20 countries.

Economically, more than 10,000 direct jobs and thousands of additional second-order opportunities are expected to arise out of the deal, given the growth of the combined company. The duo say they have no reason to believe any cuts in personnel will result from the deal, saying the combined airline will have better career progression and stability as a composite company. 

“This combination is all about growth, opportunities and creating value for everyone – from our Guests to our Team Members to the flying public at large,” said Mac Gardner, Chairman of the Board of Spirit. “We’re a perfect fit – our businesses share similar values, including our longstanding commitment to affordable travel. At the same time, we have complementary footprints and fleets, including one of the youngest and greenest fleets worldwide. Together, we will be even more competitive for our Guests and our Team Members, and we are confident we can deliver on the benefits of this combination to consumers.”

“Together, Frontier and Spirit will be America’s Greenest Airline and deliver more ultra-low fares to more people in more places,” said Barry Biffle, President and CEO of Frontier. “I couldn’t be more excited for our team members, customers, partners, the communities we serve and our shareholders.”

FMI: www.frontier.com, www.spirit.com