Spirit to merge with Frontier, creating major low-cost US airline

Spirit to merge with Frontier, creating major low-cost US airline

NEW YORK: Budget US carriers Spirit and Frontier announced yesterday they will merge to create a competitive low-cost airline, in an industry “shake up” they say aims to challenge the dominance of larger rivals. The cash and stock deal is valued at $6.6 billion and expected to close in the second half of the year, pending approval from US antitrust regulators. “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,” Spirit chief executive Ted Christie said in a statement.

“We look forward to uniting our talented teams to shake up the airline industry,” he added. The deal-with Frontier Airlines controlling 51.5 percent of the new entity and Spirit controlling the remaining 48.5 percent-would create the nation’s fifth largest airline, after American, Delta, Southwest and United. Frontier and Spirit, which did not announce a new name for the joint company or its headquarters location, said they were a “perfect fit,” whose merger would save consumers about $1 billion annually. The new airline would also have a fleet of more than 350 aircraft, and offer 1,000 daily flights to