Frontier Airlines tried the second attempt to buy Spirit Airlines in response to the proposal that the struggled rival refused.
Frontier had been working on a contract to acquire the current ongoing spirit through the bankruptcy proceedings in Chapter 11, but fell in 2022, when Jet Blue Airways offered a higher offer by operators. Later, the latter transaction was kiboshed by Federal judge in early 2024 due to competition.
The announcement of the stock exchange on January 29 states that Frontier's fresh proposal to acquire spirit on January 7, 2025 needs to invest 350 million dollars in the spirit of the spirit. It indicates that it was rejected for the reason. Proposal conditions.
Spirit also quotes the requirements to pay $ 35 million as part of the transaction.
Under the proposal, Spirit's stakeholders provided $ 400 million debt and 19 % of Frontier.
Frontier acknowledges that “the agreement has not been reached in relation to the structure, value, or conditions of transactions.”
Spirit says he is promoting the restructuring process. This is scheduled to be completed in the first quarter of this year.
A low -cost airline sector in the United States is in the drastic period of a lot of career, especially in the strict competition with network carriers, to reconsider the provision of products. These challenges are making profits with the largest US discounts in recent quarters.
Stakeholders suggest that US President Donald Trump's administration expects to be sympathetic in the merger and acquisition activities in the aviation industry.
