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Sat, May 21, 2022

Frontier And Spirit Airlines Moving Forward

Frontier And Spirit Airlines Proceeding With Merger Despite JetBlue’s Antics

Frontier Airlines announced that Spirit Airlines’ Board of Directors had reaffirmed their commitment to combining forces with Frontier Airlines, and at the same time urged shareholders reject JetBlue’s unwelcome advances.

Both Spirit and Frontier Airlines see this merger as an opportunity to create an ultra-low fare environment that delivers shareholder value while also competing against the ‘big four’ (American, Delta, Southwest, and United Airlines).

Frontier Airlines also stated that as part of the merger, Spirit shareholders can expect to own just over 48% of the combined company and by 2026, create about 10,000 direct jobs with better career opportunities and stability. Furthermore, it will in turn sprout thousands of additional ‘partner jobs.’ Mr. Barry Biffle, President and CEO of Frontier was “grateful to the AFA for its support of Frontier’s pending transaction with Spirit”.

The proposed Frontier-Spirit merger also has the support of the Association of Flight Attendants as well as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) which speaks volumes when you consider that the AFL-CIO with its 12 million members is the largest federation of unions in the USA and overseas! 

Mr. Biffle added that “together, we will be even mor competitive and will be positioned to deliver on the substantial consumer benefits of this combination”. They foresee something in the neighborhood of $1billion in annual savings even while providing more ultra-low fares in more places.

FMI: https://flyfrontier.com, https://spirit.com

 


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