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Frontier Airlines and Spirit Airlines await federal and shareholder approval to complete the $ 6 billion merger

Looks like an executive spirit And Frontier Airlines is in time with the saying, “If you can’t beat them, join them.” The airline has announced that it will consolidate low-fare units. According to CNN, airlines Spend $ 6 billion Merges with the 5th largest airline in the United States.

Low-cost carrier strike contract

Still, future customers will have to wait a little longer to find out the name of the company booking the flight and the appearance of the aircraft they are boarding. Spirit Airlines and Frontier Airlines have not yet talked about branding for the new company.

One thing is certain: the merger will give customers more opportunities to book their trips. Spirit and Frontier have expanded their decks to include more than 1,000 daily flights landing at more than 145 destinations.

Spirit CEO Ted Christie said the goal of the merger was, in part, to provide better service to its customers.

“This transaction offers aggressive ultra-low fares that provide better service to guests, expand career opportunities for team members, increase competitive pressure and bring more consumer-friendly fares for flying people. The focus is on creating competitors for the market, “Ted said.

Another reason for the merger may be to save and earn more coins. Spirit reportedly announced a loss of $ 440.6 million from 2021 sales. The year before, the airline suffered a loss of $ 719.6 million. Similarly, Frontier reported losses of approximately $ 299 million in both 2020 and 2021.

Merger awaiting approval

In this case, the frontier will be the airline Buy spirit. Federal antitrust regulators and Spirit’s shareholders have not approved the merger as of Monday afternoon. CNN reports that regulators have recently rejected a similar partnership between American Airlines and JetBlue.

“This is the type of transaction the administration should actually support,” Bill Franke said in an interview with CNBC. Bill is on the Frontier Board of Directors and is also the Managing Partner of Indigo Partners, the majority shareholder of the airline.

“It’s good for consumers.” It’s good for employees, “he said.

Bill goes on to say: “It is beneficial for the community to serve airlines, and after all, these two airlines, together, dominate less than 10% of the market.”

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Frontier Airlines and Spirit Airlines await federal and shareholder approval to complete the $ 6 billion merger

Source link Frontier Airlines and Spirit Airlines await federal and shareholder approval to complete the $ 6 billion merger

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