Spirit Airlines Shareholders Called to Vote on Frontier Merger

Spirit Airlines Shareholders Called to Vote on Frontier Merger


The shareholders of the US airline Spirit Airlines have been summoned on the 10th to rule on the purchase offer of 2,900 million dollars presented by the airline Frontier Airlines and reject the 3,600 million presented by the company JetBlue Airways.

Earlier this month, the Board of Directors of the US low-cost airline Spirit rejected Jet Blue’s takeover offer and unanimously favored its merger with Frontier Airlines, despite being significantly lower.

The Board said it continues to believe that the Frontier transaction represents the best opportunity to maximize value and recommends that Spirit shareholders adopt the Frontier merger agreement, the company announced.

Both Frontier and JetBlue say acquiring Spirit would help them compete against the nation’s top four airlines. But Jet Blue would do away with Spirit as an ultra-low-cost carrier, while Frontier would not.

In addition, the US Department of Justice and several states are already asking to block a regional partnership between JetBlue and American Airlines on the grounds that it reduces competition.