Spirit Airlines aircraft are shown at George Bush Intercontinental Airport on August 5, 2021 in Houston, Texas.
Image Brandon Bell / Getty
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Image Brandon Bell / Getty
Spirit Airlines aircraft are shown at George Bush Intercontinental Airport on August 5, 2021 in Houston, Texas.
Image Brandon Bell / Getty
Two US airlines known for their low fares have announced that they are planning to merge to create what they call the country’s “most competitive ultra-low-fare” airline.
Frontier Airlines and Spirit Airlines said in a joint press release Second, the companies’ boards of directors unanimously approved the $6.6 billion transaction and expected it to close in the second half of the year.
“We are a perfect fit – our businesses share similar values, including our longstanding commitment to value travel,” said Mac Gardner, Spirit’s chairman of the board of directors. affordable,” said Mac Gardner, Chairman of the Board of Directors of Spirit. “At the same time, we have additional footprints and fleets, including one of the youngest and greenest fleets worldwide.”
The merger comes at a challenging time for the airline industry. Earnings have rebounded since taking a big hit earlier in the pandemic, but the recent wave of omicrons is once again hitting corporate profits, Reuters reported. The increase in infections due to the infectious variant has also caused many airline employees to lose their jobs, leading to flight delays and cancellations across the US.
Under the terms of the agreement, Frontier shareholders will own approximately 51.5% of the joint venture and Spirit shareholders will own 48.5%. It will become the fifth largest airline in the country, according to CNBC.
The combined airline said it will offer 1,000 daily flights to more than 145 destinations in 19 countries and provide more reliable service to customers. The companies say they will also directly create 10,000 more jobs by 2026.
A version of this story originally appeared inside Morning version live blogs.
