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JetBlue makes rival offer for Spirit Airlines
The Frontier – Spirit Airlines merger has potentially hit some turbulence.
JetBlue has entered the fray with an unsolicited $3.6 billion offer for Spirit Airlines.
JetBlue’s cash offer equates to about one-third more compared to the Frontier bid.
“The combination of the two airlines would position JetBlue as the most compelling national low-fare challenger to the four large dominant US carriers,” said JetBlue in a statement.
Spirit said it ‘will evaluate JetBlue’s proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders.’
Frontier maintains its offer is a better deal for shareholders and airline competition.
“A combined Spirit and Frontier will deliver $1 billion in annual savings for consumers and offer even more ultra-low fares to more places nationwide,” Frontier said.
Either bid would be certain to attract very thorough anti-trust scrutiny.
“Customers shouldn’t have to choose between a low fare and a great experience, and JetBlue has shown it’s possible to have both,” said Robin Hayes, JetBlue CEO referring to Frontier and Spirit’s lower customer satisfaction scores.
Ray Monty
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