Frontier Airlines is trying to join the spirit of Spirit again three years after the company has not been able to complete the proposed merger.
On Wednesday, Frontier said that he would not pay $ 2.1 billion and cash to his spirit. He stated that it could unite two largest budgets in Japan and rebuild competition in the US airline industry. However, the spirit said that he had refused this offer. It states that it welcomes further negotiations with Frontier, much less than the $ 2.9 billion of the airline agreed in early 2022.
Spirit left the previous frontier contract last year in support of a higher counter gem from Jet Blue Airways, which was blocked by the Federal Court in the Federal Court. After a series of sets, including the failure of the debt renovation, the spirit applied for bankruptcy in November.
Frontier, which gave the latest offer to the spirit and its creditor on January 7, promoted a useful merger for both companies and consumers.
“We are in a position to provide more options and deeper savings, and strengthen travel experiences with more reliable services.”・ Biffle stated in a statement on Wednesday.
In a securities application, Spirit stated on Tuesday to reconstruct the bankruptcy court's finances, but remained in his future offer.
Ted Christie and Chairman Mac Gardner, the Spirit, said in a letter to the frontier executive that the latest offer was too low. They also had a considerable risk related to transactions, and said they hated investing $ 350 million.
In the letter, the spirit of the spirit acknowledged the appeal of such a transaction, but said that the current offer was “inadequate and not invalid.” They added the other offer, “Please be happy.”
The US aviation industry has been integrated significantly in recent decades, and its four largest airlines in the country now dominate more than two -thirds in the domestic market. These airlines have been particularly successful in recent years due to the emergence of a pandemic that is enthusiastic about traveling, such as purchasing more business and top tickets.
However, budget airlines, such as spirit and frontier, have reached more difficult times due to many of the most popular routes and important competition. Both airlines tried to adapt, including selling packages to appeal to travelers who want to use more than travelers looking for the minimum fare.
If they are combined, the two low -cost airlines will be the fifth largest airline in the United States jumping Alaska Airlines, which completed the acquisition of Hawaii Airlines in September. According to federal government data, Spirit and Frontier controlled about 8.5 % of domestic air travel after 15.9 % of United Airlines. Southwest Airlines, American Airlines, and Delta Airlines are controlled over 17 %, respectively.
An airline analyst says that spirit and frontier complement each other. The two merger, which is called an ultra -low -cost career, has been a long -term target of throwing.
The airline provides a total of 1,400 flights to the US destination, the Caribbean and Latin America, but according to the air data company Cirium, only about 18 % of the route. I am doing it. Spirit flies more to international destinations and flies about 2.5 times the frontier flight overseas. Both use the Airbus A320 family airplane exclusively.
Frontier stated that the aeronautic consulting company hired to analyze transactions would increase at least $ 500 million a year and reduce at least 100 million dollars by combining two airlines.
Even if the spirit agrees, the anti -trade regulatory authorities must register for the transaction. The Biden administration was aggressive aggressive in challenging corporate trading in court, such as blocking a partnership between the US Airlines, Jet Blue and Jet Blue Spirit. However, anti -trade experts hope that the Trump administration will far accept such transactions.
In a statement on Wednesday, William A. Franke, chairman of the Frontier Board, says “Purchase Spirit” is “more effective and long -term execution to enter a large -scale new market. We will create a more powerful low -fare airline. “
Franke is the founder of Indigo Partners, a plastic equation equity company that has invested in budget airlines around the world and is connected to both spirit and Frontier.
Indigo had a dominant interest in the spirit when he acquired Frontier shares from 2006 to 2013. Under Indigo's ownership, the spirit was released in 2011 and the frontier was released in 2021. Biffle, the highest executive of Frontier, was a top spirit executive from 2005 to 2013.
The Bankruptcy Court's hearing on the Spirit reorganization plan is scheduled for February 13.
