JetBlue, one of the top low-cost U.S. airlines, intends to purchase Spirit Airlines. The company shared this plan on the morning of July 28.
Within the previous 14 hours, Spirit had rejected a similar proposal from Frontier Airlines.
JetBlue first announced its desire to purchase Spirit in April, but the potential results were unclear while it competed with Frontier to prove why it was the better choice to acquire the airline.
The CEO of JetBlue, Robin Hayes, expressed excitement about the development. He stated that the acquisition would “turbocharge” the company’s growth.
Hayes also mentioned how eager JetBlue is to offer impressively low prices and excellent service at the same time.
Customer reviews and even business experts within academia have previously noted that Spirit’s customer service is less than ideal, but JetBlue has consistently received praise for how it treats passengers.
Nonetheless, Hayes had nothing bad to say about leaders and employees at JetBlue, describing them as outstanding while mentioning that JetBlue leaders look forward to working with them.
Both airlines focus on ultra-low-cost fares, a shared goal that makes the merger promising. Once they merge, they’ll form the fifth largest carrier in the nation.
However, JetBlue’s purchase plan faces some challenges. The Department of Justice is engaging in a lawsuit aimed at JetBlue and American Airlines’ Northeast Alliance.
JetBlue is offering Spirit $33.50 per share, which will add up to $3.8 billion.
Spirit’s CEO, Ted Christie, praised the potential merger. That might surprise those who have observed the back-and-forth between the two airlines over the last few months.
Initially, Christie was reluctant to consider such a merger, expressing concerns about difficulties getting regulatory approval. JetBlue and Spirit now anticipate that the regulatory process will be complete within the first six months of 2024.