Spirit Airlines updates due diligence on JetBlue, Frontier Air deals

Jun. 14, 2022 7:19 AM ETSpirit Airlines, Inc. (SAVE), JBLU, ULCCBy: Kevin P. Curran, SA News Editor6 Comments

Spirit And Frontier Airlines Merge In $6.6 Billion Deal

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Spirit Airlines (NYSE:SAVE) updated its evaluation process of competing offers from JetBlue Airways (NASDAQ:JBLU) and Frontier Air Group on Tuesday (NASDAQ:ULCC).

Spirit CEO Ted Christie commented that both deals are being evaluated in accordance with management’s fiduciary duty and both suitors are being communicated with actively. The statement appeared to anticipate a consistent criticism from JetBlue CEO Robin Hayes that indicated a lack of engagement.

The statement also confirmed that a new Special Meeting of Spirit Stockholders will be held on Thursday, June 30. Previously, the meeting had been set for June 10, but was postponed due to a late-coming amendment to the JetBlue offer.

Still, Spirit management remains steadfast in its preference for a tie-up with Frontier Air (ULCC), considering it a superior proposal based upon the perceived likelihood of regulatory approval.

“Spirit continues to be bound by the terms of its merger agreement with Frontier, under which a "Superior Proposal" is defined as being both reasonably capable of being consummated and more favorable to Spirit's stockholders from a financial point of view,” the statement read.

JetBlue is nonetheless more optimistic about the prospects of its offer winning out.

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