It looks like executives at Spirit and Frontier Airlines are making do with the saying “if you can’t beat ’em, join ’em.” The airline companies announced they’ll be combining their low-fare forces. According to CNN, the flight carriers are spending $6.6 billion to merge into the fifth-largest airline in the United States.
Low-Fare Flight Companies Strike Deal
Still, future customers will have to wait a little longer to know the company name they’ll be booking flights with or the look of the aircraft they’ll be boarding. Spirit and Frontier Airlines have yet to speak on the new company’s branding.
One thing’s for certain, the merger will give customers more opportunities to book a trip. Spirit and Frontier expanded their deck to include more than 1,000 daily flights landing in over 145 destinations.
Spirit CEO Ted Christie spoke on the merger saying the goal is, in part, to serve their customers better.
“This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” Ted said.
Another reason for the merger could be saving and earning more coins. Spirit reportedly announced a $440.6 million loss from 2021 sales. The year before then, the airlines company was at a $719.6 million loss. Similarly, Frontier reported taking a loss of about $299 million in both 2020 and 2021.
Merger Awaits Approval
In the case, Frontier would be the airline purchasing Spirit. Federal antitrust regulators and Spirit shareholders have not approved the merger as of Monday afternoon. CNN reports that regulators recently rejected a similar alliance between American Airlines and JetBlue.
“This is the type of transaction the administration should in fact support,” Bill Franke said in a CNBC interview. Bill sits on Frontier’s board while also working as the managing partner for the airline’s majority shareholder Indigo Partners.
“It’s beneficial to the consumers. “It’s beneficial to the employees,” he said.
Bill continued saying, “It’s beneficial to the communities that the airlines serve. And at the end of the day, even in combination, these two airlines will control less than 10% of the market.”
Want updates directly in your text inbox? Hit us up at 917-722-8057 or click here to join!
