Frontier Airlines is again pursuing a merger with Spirit Airlines, the parent company for the Denver-based ultra-low-cost carrier said Wednesday.
In a statement, Frontier announced it made a “compelling proposal” to join forces with its top budget airline competitor.
The move comes as Spirit is currently in the midst of reorganizing as part of Chapter 11 bankruptcy proceedings. The proposal includes newly-issued Frontier debt and common stock.
“As a combined airline, we would be positioned to offer more options and deeper savings, as well as an enhanced travel experience with more reliable service,” Frontier CEO Barry Biffle said in a statement announcing the news.
Both Frontier and Spirit have faced financial hurdles, in recent years, amid an industry landscape that’s propelled the the top network airlines (namely Delta Air Lines and United Airlines) to the highest profits in recent years.
But Spirit’s headwinds have been more pronounced, owed to mounting debt and engine challenges affecting a large portion of its fleet.
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Frontier and Spirit previously explored merger in 2022, before Spirit instead pursued joining with JetBlue — a deal later blocked in court on antitrust grounds following a lawsuit by the Biden administration.
The two airlines reportedly reignited merger talks last fall, the Wall Street Journal said in October, just prior to Spirit’s bankruptcy filing.
Throughout the airline industry, the Trump administration, which took office last week, is widely expected to take a more lenient regulatory posture on merger and acquisition activity.
This is a developing story. Check back for additional updates.
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