Spirit Airlines Rejects Lucrative JetBlue Takeover Offer, Will Accept Frontier Offer

By Kurt Stolz on 3 May 2022
  • Share

A JetBlue plane in New York

Spirit Airlines said that it will reject JetBlue Airways lucrative offer for the carrier, sticking with its original deal with Frontier Airlines.

The airline said that the JetBlue deal would be rejected by antitrust regulators.

“We believe a combination of JetBlue and Spirit has a low probability of receiving antitrust clearance so long as JetBlue’s Northeast Alliance with American Airlines remains in existence,” Spirit said in a letter to JetBlue released on Monday.

“Given this substantial completion risk, we believe JetBlue’s economic offer is illusory, and Spirit’s board has not found it necessary to consider it.”

JetBlue later announced that it would offer Spirit a $200 million break-up fee if the deal were not completed on antitrust grounds. A spokesperson for Spirit said the company’s board rejected the break-up fee offer as well.

The New York-based carrier responded to that news with a letter indicating it could launch a hostile bid for Spirit by taking its offer directly to that airline’s shareholders.

“While we would unquestionably prefer to negotiate a transaction with you, if you continue to refuse to constructively engage with us so that we can deliver this value to your stockholders, we are actively considering all other options available to us,” JetBlue said in the letter.

The Spirit-Frontier combination was first announced in February, with a stock-and-cash deal valued at $6.6 billion.

(Photo: Accura Media Group)

Accura News

Read previous post:
Some Broadway Theaters End Proof of Vaccination Requirement, But All Maintain Mask Mandates

Sunday marked the first day since the reopening of Broadway last summer that many theaters will not require theatergoers to...