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LCCs Frontier, Spirit Airlines to merge
The two largest low-cost carriers in the US have agreed to merge.
The integration of Frontier Airlines and Spirit Airlines will create the country’s fifth largest airline.
The cash and stock deal is valued at about $6.6 billion, with Frontier Airlines holding 51.5% and Spirit with the remaining 48.5%.
“It will create America’s most competitive ultra-low fare airline,” said Bill Franke, chair of Frontier.
Franke will become chair of the new combined airline, and hasn’t disclosed a new name or who will be CEO.
“This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better,” said Spirit CEO Ted Christie.
The two airlines have 5.4% of the revenue passenger miles flown by US airlines.
The airlines expect the deal to finalize in the second half of this year.
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