Spirit Airlines eyes merger with Frontier amid restructuring
Article excerpt
Spirit airlines eyes merger with Frontier amid restructuring. Bankrupt Spirit Aviation Holdings Inc. is in discussions to merge with Frontier Group Holdings, people familiar with the matter said. A transaction could be announced as soon as this month, said the people, who asked not to be identified because the matter is confidential. The discussions are ongoing and could end without a deal taking place, they said. A merger between the airlines would mark a significant step for Spirit, which filed its second bankruptcy in less than a year in August. It comes as ultra-low-cost carriers struggle with rising costs and fierce competition from larger U.S. airlines. Shares in Frontier rose nearly 10% in U.S. postmarket trading after Bloomberg's report. Spirit was unchanged and closed at 20 cents in regular trading on Tuesday. The discussions are taking place as Frontier abruptly replaced its longtime leader and Chief Executive Officer Barry Biffle. Representatives for Spirit didn't immediately respond to a request for comment. Frontier declined to comment. Executives at Frontier have pushed for years for a combination of the two lower-cost carriers, which once specialized in offering heavily discounted ticket prices while charging travelers for anything else - including printed boarding passes and inflight water. Both have recently begun to offer more upscale options in a...
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In November, Spirit announced 150 job cuts across corporate and operational roles.
