Frontier Airlines submits new proposal to combine with Spirit Airlines

Frontier Group Holdings submitted (29-Jan-2025) a proposal to combine with Spirit Airlines through the issuance of newly issued Frontier debt and common stock. The proposed transaction aims to increase operational synergies and provide higher recoveries for Spirit financial stakeholders in excess of Spirit's standalone restructuring plan. Frontier chairman Bill Franke stated: "This proposal reflects a compelling opportunity that will result in more value than Spirit's standalone plan by creating a stronger low fare airline with the long-term viability to compete more effectively and enter new markets at scale". Frontier Airlines CEO Barry Biffle stated: "As a combined airline, we would be positioned to offer more options and deeper savings, as well as an enhanced travel experience with more reliable service". As previously reported by CAPA, Frontier and Spirit announced a USD6.6 billion merger agreement in Feb-2022, which was terminated in Jul-2022 as Spirit entered merger discussions with JetBlue Airways. [more - original PR] [more - original PR - II]