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29-Jul-2022 10:26 AM

JetBlue Airways and Spirit Airlines sign definitive merger agreement

JetBlue Airways and Spirit Airlines' board of directors approved (28-Jul-2022) a definitive merger agreement, under which JetBlue will acquire Spirit for USD33.50 per share in cash, including a prepayment of USD2.50 payable upon Spirit stockholders approving the transaction. The agreement is valued at approximately USD3.8 billion, with an adjusted enterprise value of USD7.6 billion. The combined airline will be the fifth-largest carrier in the US, with a fleet of 458 aircraft and a further 300 on order. The carrier will be based in New York led by JetBlue CEO Robin Hayes, and is estimated to generate annual revenues of USD11.9 billion. Spirit Airlines president and CEO Ted Christie stated: "We are thrilled to unite with JetBlue through our improved agreement to create the most compelling national low-fare challenger to the dominant US carriers… Bringing our two airlines together will be a game changer, and we are confident that JetBlue will deliver opportunities for our Guests and Team Members with JetBlue's unique blend of low fares and award-winning service". The transaction is expected to close by 1H2024, subject to regulatory approval. [more - original PR] [more - merger agreement]

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