JetBlue Makes Competing Bid to Acquire Spirit | Enterprise Journey Information

This web page was created programmatically, to learn the article in its authentic location you may go to the hyperlink bellow:
https://www.businesstravelnews.com/Procurement/JetBlue-Makes-Competing-Bid-to-Acquire-Spirit
and if you wish to take away this text from our website please contact us


JetBlue has submitted a competing provide to Spirit Airlines’ board of administrators in hopes of wooing the ultra-low-cost service away from its merger take care of Frontier Airlines.

Under its proposal, JetBlue would purchase Spirit for $3.6 billion, or $33 per share in money, which it stated was a 50 p.c premium to Spirit’s April 4 closing share value and a “superior proposal” to the merger agreement with Frontier introduced in February. Frontier’s provide was for about $2.9 billion in money and inventory.

JetBlue CEO Robin Hayes in an announcement stated the acquisition could be a “game changer” by way of the service’s capacity to compete on a nationwide scale. Combined with Spirit, JetBlue’s fleet could be 455 plane with 312 Airbus plane on order and would deliver new locations to JetBlue’s community together with St. Louis; Memphis; Louisville, Ky.; Atlantic City, N.J.; Myrtle Beach, S.C.; and 4 locations in Colombia.

“While JetBlue and Spirit are different in many ways, we also have much in common, including a focus on keeping our costs low so we can profitably expand and offer an attractive alternative to the dominant ‘Big Four’ airlines,” based on Hayes. “We would conduct a full review of Spirit’s product offering, operational and customer technology and talent pool to optimize the combined airline.”

Spirit in an announcement acknowledged the “unsolicited proposal” and stated it “will work with its financial and legal advisors to evaluate JetBlue’s proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders.”

Frontier, in the meantime, maintained that its provide, which it had hoped to shut within the second half of this 12 months, was “in the best interest of consumers and shareholders.” A Frontier spokesperson indicated a JetBlue-Spirit merger would entice extra antitrust scrutiny from the U.S. Department of Justice, which is already challenging its partnership with American Airlines.

“Unlike the compelling Spirit-Frontier combination, an acquisition of Spirit by JetBlue, a high-fare carrier, would lead to more expensive travel for consumers,” the Frontier spokesperson stated. “In particular, the significant East Coast overlap between JetBlue and Spirit would reduce competition and limit options for consumers.”


This web page was created programmatically, to learn the article in its authentic location you may go to the hyperlink bellow:
https://www.businesstravelnews.com/Procurement/JetBlue-Makes-Competing-Bid-to-Acquire-Spirit
and if you wish to take away this text from our website please contact us

Leave a Reply

Your email address will not be published. Required fields are marked *