The JetBlue airliner will land by taxi past Spirit Airlines jets at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022. (JoeCavaretta / Sun Sentinel / Tribune News Service via Getty Images)
Joe Cavaletta | Sun Sentinel | Getty Images
Jetblue Airlines Reached $ 3.8 billion transaction to buy Spirit Airlines With an acquisition that creates the fifth largest airline in the country and removes the fast-growing low-cost carriers from the market.
The airline announced an agreement Thursday morning, hours after the spirit Discard plans to combine With fellow discounters Frontier Airlines.. Spirit lacked shareholder support for approval of the Frontier merger, first announced in February.
If approved by regulators, JetBlue’s acquisition of Spirit will leave Frontier as the largest discount carrier in the United States. It is also the first major US airline transaction since 2016. Alaska Airlines Defeat JetBlue for Virgin America.Analysts said this deal More integration Among small careers.
JetBlue executives will gain access to more Airbus jet airliners and pilots with the purchase of Spirit, and will quickly track its growth. American, delta, United When SouthwestDominates most of the US market. The New York-based airline plans to refurbish the spirit yellow plane with jetblue-style sparse interiors, with seat back screens and wider feet.
JetBlue said it will pay Spirit $ 33.50 per share in cash, including a $ 2.50 prepayment if Spirit shareholders approve the transaction and a dime tick fee starting next year until the transaction is approved. rice field.
This agreement limits the one-month bidding war between JetBlue and Frontier for Spirit.
To the surprise of JetBlue, a full cash bid on the Spirit in April confused Spirit’s plans to combine it with the Frontier. After that, Frontier and JetBlue competed for spirit, and each slackened the offer until the frontier deal closed on Wednesday.
Spirit then said it would continue negotiations to sell it to JetBlue.
A Miramar, Florida-based airline has repeatedly rejected JetBlue’s bid, saying such partnerships are unlikely to be approved by regulators.
The Justice Department did not immediately comment on Thursday’s deal.
After the deal was announced, Spirit shares rose about 4% in pre-market trading, while JetBlue rose 1%. Frontier decreased by 1%.