Frontier Airlines is attempting for a second time to merge with the now bankrupt Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle.
Spirit, which filed for bankruptcy protection last year, says it has rejected the new Frontier overture but would be open to a higher offer.
Spirit filed for Chapter 11 bankruptcy protection in November 2024, six months after a proposed merger with JetBlue collapsed.
Spirit Airlines said on Wednesday that it is rejecting the latest merger offer from Frontier Airlines, and will instead continue with its bankruptcy restructuring plan.
Spirit rejected the proposal as it would not provide the anticipated shareholder value and raised concerns over the timing and successful completion of the deal.
Budget carrier Frontier Airlines announced on Wednesday that it has made another bid for fellow discount carrier Spirit Airlines, which is in bankruptcy, for an undisclosed sum.
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Frontier and Spirit Airlines will once again try to merge, only months after the Biden administration won a key antitrust court battle to block an attempt by JetBlue to buy Spirit.
Frontier Airlines hoped to create a low-cost airline giant, but Spirit isn’t interested—at least, not at this price. Spirit Airlines has rejected a merger offer with Frontier as it prepares to exit bankruptcy.
Frontier had pitched the bankrupt airline on a coupledom that it claimed would have created a formidable low-cost competitor in the battle for passengers against American Airlines, Delta, Southwest, and United. While Spirit said a merger could create a “potent competitor in the marketplace” they’re just not that into it.