JetBlue Airways has agreed to buy Spirit Airlines for $3.8 billion and create the nation’s fifth-largest airline if the deal can win approval from antitrust regulators.
The agreement announced Thursday capped bidding war that began in April, and it came one day after Spirit’s attempt to merge with rival discount carrier Frontier AirlinesJetBlue and Spirit would become the fifth-largest U.S. carrier, with about 9% of the market. The combined airline would move much closer to the leaders — American, United, Delta and Southwest — while leaving the rest of the pack far behind.
New York-based JetBlue won Spirit, but its stock barely moved Thursday and has dropped 43% since it jumped into the bidding in April. Other large airlines lost 17% to 28% in the same period.Shares of Spirit, based in Miramar, Florida, rose 5.6% to close at $25.66, nearly $8 below the price that JetBlue is paying. Frontier, now positioned to become the largest U.S. discount carrier, soared 20.5% higher.
“A lot has been said over the last few months obviously, always with our stakeholders in mind,” Christie said on CNBC. “We have been listening to the folks at JetBlue, and they have a lot of good thoughts on their plans" for convincing the regulators.Hayes said Spirit planes will be converted to JetBlue’s configuration, which allows for more legroom and means there will be fewer seats for sale on each flight. He said JetBlue will increase the pay of Spirit employees.
Many analysts believe that Frontier, Allegiant, Sun Country and others can fill the gap left by Spirit in the low-fare segment, but it might take a few years.
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After hot bidding war JetBlue agrees to buy Spirit for $3.8BJetBlue Airways has agreed to buy Spirit Airlines for $3.8 billion and create the nation’s fifth-largest airline if the deal can win approval from antitrust regulators. The agreement Thursday capped a months-long bidding war and arrives one day after Spirit’s attempt to merge with fellow budget carrier Frontier Airlines fell apart. Spirit CEO Ted Christie was thrust into the awkward position of defending a sale to JetBlue after arguing vehemently against the deal, saying that antitrust regulators would never let it happen.
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After hot bidding war JetBlue agrees to buy Spirit for $3.8BJetBlue has agreed to buy Spirit Airlines in a $3.8 billion deal, a day after Spirit and Frontier Airlines agreed to abandon their merger proposal.
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JetBlue Agrees To Buy Spirit Airlines For $3.8B After Bidding War, Fares Could SurgeJUST IN: JetBlue Airways has agreed to buy Spirit Airlines for $3.8 billion and create the nation’s fifth-largest airline if the deal can win approval from antitrust regulators. The bad news? This could mean more expensive flights.
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JetBlue agrees to buy Spirit for $3.8B after bidding warThe agreement Thursday capped a months-long bidding war and arrives one day after Spirit’s attempt to merge with fellow budget carrier Frontier Airlines fell apart.
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JetBlue Airways agrees to buy Spirit Airlines for $3.8 billion after bidding warJetBlue Airways has agreed to buy Spirit Airlines for $3.8 billion and create the nation's fifth-largest airline if the deal wins approval from antitrust regulators.
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Spirit, Frontier abandon merger bid, paving way for JetBlue dealThe Frontier offer was worth more than $2.6 billion in cash and stock, far short of JetBlue's all-cash bid of $3.7 billion.
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