JetBlue-Spirit Airlines Proposed Deal: A Skift Timeline

25.08.2023 - 12:52 / skift.com / Spirit Airlines / Bernie Sander / Edward Russell / Rashaad Jorden / Airlines

The proposed merger of JetBlue Airways and Spirit Airlines has been one of the travel industry’s most watched developments over the past year and a half, with the two carriers aiming to create the U.S.’ fifth largest domestic airline.

Before JetBlue and Spirit proposed merger, Spirit was looking to join forces with Frontier Airlines. So how has the entire scenario played out? Here’s a timeline of the massive planned merger, including its major developments.

Frontier and Spirit unveiled plans in February 2022 to merge in a deal that would create the U.S.’ fifth-largest carrier and one serving more than 145 destinations in 19 countries.

The transaction is valued at $6.6 billion, including the $2.9 billion equity value of Spirit as well as net debt and operating lease liabilities. 

They aimed to close the transaction in the second half of 2022.

Several public advocacy groups the following month called on U.S. regulators to block Frontier and Spirit’s proposed merger. Public Citizen, Fight for the Future and seven other groups wrote in a letter to the Transportation and Justice Departments that the deal “would destroy competition in the only competitive market segment of the highly consolidated airline industry.”

Eight lawmakers — including Senators Elizabeth Warren (D-Massachusetts) and Bernie Sanders (I-Vermont) and Representative Alexandria Ocasio-Cortez (D-New York) — wrote a separate letter expressing their concerns about the merger, saying the “resulting Spirit-Frontier carrier could hurt consumers in numerous ways, consolidating market power for the airlines and reducing choices for travelers.”

Spirit confirmed in April 2022 that it received an unsolicited offer from JetBlue, which Spirit said proposed to acquire “all of the outstanding shares of Spirit’s common stock in an all-cash transaction for $33.00 per share.” JetBlue’s $3.6 billion bid offers investors a $700 million premium over the $2.9 billion Frontier-Spirit merger.

Skift reported it’s uncertain if a JetBlue-Spirit deal would receive approval as JetBlue is under regulatory scrutiny for its partnership with American Airlines, known as the “Northeast Alliance.”

Spirit said in April 2022 that it started talks with JetBlue regarding its $3.6 billion offer. Reuters reported that either possible outcome — merging with JetBlue or Frontier — would surely invite close scrutiny from U.S. antitrust authorities, who have taken an aggressive stance toward deals they believe would reduce competition and raise prices.

Spirit said in May 2022 that it would continue to a seek a $2.9 billion merger with Frontier Airlines instead of accepting JetBlue’s offer. Edward Russell, editor of Skift publication Airline Weekly, reported Spirit rejected