Shareholders appear to be leaning against the bid preferred by Spirit’s board, a merger offer from Frontier Airlines that is currently worth more than $2.6 billion. Four previous votes have been postponed for lack of support.
Competing with JetBlue’s richer cash offer, the Spirit board and Frontier argue that antitrust regulators will block JetBlue from buying Spirit, making the JetBlue bid an illusory one. JetBlue, of course, disagrees. Frontier and Spirit announced their deal on Feb. 7, saying they would create a huge discount airline that would save consumers $1 billion a year in airfares by creating a powerful new competitor to American, United, Delta and Southwest.
Frontier and Spirit said that together they would have enough planes to fly many new routes that aren’t yet served by a discount airline, and they would create 10,000 new jobs by 2026 in the process. JetBlue figured that buying Spirit was the best way it could quickly add planes and pilots and break out of the second tier of U.S. airlines. JetBlue argued that it would help consumers too, by driving down fares more effectively than Frontier and Spirit.
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