Frontier Group Says it Remains Committed to Combination with Spirit
2022.04.06 22:56
By Sam Boughedda
Investing.com — Frontier Group Holdings Inc (NASDAQ:ULCC) said it remains “committed” to its combination with Spirit Airlines Inc (NYSE:SAVE) after news broke yesterday evening that JetBlue Airways Corp (NASDAQ:JBLU) had made an alternative bid for the carrier.
In February, Spirit and Frontier announced a combination that would have seen Spirit shareholders receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own.
However, with JetBlue making a bid for Spirit, that move could be scuppered.
Nevertheless, Frontier remains focused on the merger. In a regulatory filing, the company disclosed a letter sent to employees which said they are confident the proposed transaction “is in the best interest of consumers and team Frontier.”
“Together we would create America’s most competitive airline, offering more ultra-low fares to more travelers in more destinations across the United States, Latin America and the Caribbean. Nothing changes today as a result of this news,” the letter read.
The company added that the agreement remains in place, but the next steps will see Spirit and Frontier’s board of directors review the proposal from JetBlue.
