JetBlue agrees to buy Spirit for $3.8 billion, could become 5th-largest US airline
JetBlue has agreed to buy Spirit Airlines for $3.8 billion in a deal that would create the nation’s fifth largest airline if approved by U.S. regulators.
The agreement Thursday comes a day after Spirit’s attempt to merge with Frontier Airlines fell apart. Spirit had recommended its shareholders approve a lower offer from Frontier, saying that antitrust regulators are more likely to reject the bid from JetBlue.
JetBlue said Thursday that it would pay $33.50 per share in cash for Spirit, including a prepayment of $2.50 per share in cash payable once Spirit stockholders approve the transaction. There’s also a ticking fee of 10 cents per month starting in January 2023 through closing.
The combined airline would have a fleet of 458 aircraft. The airlines will continue to operate independently until after the transaction closes.
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What would a Spirit-JetBlue merger mean for travelers?
A merger with JetBlue is going to be a big change for Spirit’s passengers. JetBlue competes more directly with legacy full-service carriers than the ultra-low-cost airline it is planning to buy. That could mean higher fares in some markets.
The combination of cultures and fleets will also take significant time and could have some serious pain points over the coming years. While JetBlue and Spirit fly similar airplanes, they are configured very differently, and it will take time to reconfigure Spirit’s current aircraft to JetBlue’s standards.
The inflight service flow on the two airlines is different as well, and Spirit’s staff is likely to need to be retrained on JetBlue’s practices.
Contributing: Zach Wichter, USA TODAY