Which Way, Spirit Shareholder? | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Oshkosh-Day One-07.25.22

Oshkosh-Day Two-07.26.22

Airborne-Unlimited-08.03.22

Airborne-Unlimited-08.04.22

Airborne-Unlimited-08.05.22

Wed, Jul 27, 2022

Which Way, Spirit Shareholder?

Vote on Merger Leaves Spirit Execs in the Lurch, Unsure of Merger Status

The Spirit and Frontier Airlines merger stands before shareholders of the company, scheduled to vote on the matter today on whether or not the two should approve the airline as a preferred buyer. 

Rumor has it that Spirit’s board leans a different way than the shareholder body, preferring to merge with Frontier. The shareholders, however, just might reject the bid and push it into the arms of JetBlue Airways, whose $3.7 billion all-cash offer handily outstrips Frontier’s $2.6 billion offer. Naturally, money is only a portion of the deal, as the board and Frontier argue that a JetBlue bid has little chance of making its way past antitrust regulators. A changing economic landscape and an administration positioning itself as ‘tough’ on companies make a JetBlue deal a bit of a longshot to some, especially in light of the current suit aiming to break up the airline’s deal with American Airlines.

So what of the Frontier/Spirit arrangement? For one, the board finds it the most enticing, judging from a recent appeal from Spirit CEO Ted Christie. The deal, they hope shareholders understand, would create a bigger, stronger airline with the combined resources and network of a couple of the biggest ultra low-cost carriers in the game. The new planes would allow a plethora of new routes and add more than 10,000 new jobs by 2026, if the adspeak is to be believed. All in all, much remains to be seen, from the shareholder’s selection to whether or not uncle sam will allow such a deal to go through. Theoretically, the Frontier deal could be more likely, given the size of both carriers and limited reach of their networks, aspects which JetBlue lacks in comparison. If the apparently unlikely selection of Frontier comes from the shareholder vote, then it could ultimately touch off a series of similar mergers among similarly sized low-cost carriers. 

FMI: www.spirit.com, www.jetblue.com

Advertisement

More News

ANN's Daily Aero-Term (08.04.22): ICAO Three-Letter Designator (3LD)

ICAO Three-Letter Designator (3LD) An ICAO 3LD is an exclusive designator that, when used together with a flight number, becomes the aircraft call sign and provides distinct aircra>[...]

Aero-News: Quote of the Day (08.04.22)

“Delivering sustainable aviation technologies to help our customers bend the emissions curve remains one of Raytheon Technologies’ most important priorities. Our invest>[...]

ANN's Daily Aero-Linx (08.04.22)

Aero Linx: The Soaring Safety Foundation (SSF) The Soaring Safety Foundation (SSF) is the Training and Safety arm of the Soaring Society of America (SSA). Our mission is to provide>[...]

Oshkosh 2022 Morning Brief-Day 3: RV-15, Epic Aircraft, Gogo 5G, and MORE!

07.27.22 Episode Powered by Gogo!!! Join us for the Oshkosh 2022 Daily Morning Brief, live from Wittman Regional Airport! We'll have some current news, a little weather report, liv>[...]

ANN's Daily Aero-Term (08.05.22): Low Approach

Low Approach An approach over an airport or runway following an instrument approach or a VFR approach including the go-around maneuver where the pilot intentionally does not make c>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2022 Web Development & Design by Pauli Systems, LC