Frontier Airlines seeks to become the largest low-cost airline
This Monday, one of the most important transactions in the aeronautical world was announced, in which Frontier Airlines is the protagonist, as indicated by the Local10 press team.
The aeronautical company acquired Spirit Airlines over the weekend, at a cost of $2.9 Billion
"This transaction with Frontier Airlines is focused on creating an aggressive competitor with ultra-low fares to serve our guests even better," said Spirit CEO Ted Christie.
Frontier would be more competitive
Frontier and Spirit Airlines indicated in a statement that what this alliance seeks is for the low-cost aeronautical company to be ranked first in the United States.
"What we seek is to increase competitive pressure, resulting in more consumer-friendly rates," Christie said in the statement.
NEW: The parent company of the budget airline Frontier is buying Spirit Airlines in a $2.9 billion cash-and-stock deal. https://t.co/ECNq7JuVIm
- ABC News (@ABC) February 7, 2022
Current Frontier shareholders will own approximately 51,5% and current Spirit shareholders will own approximately 48,5% of the combined airline.
Transaction will be completed in the second half of 2022
Both Spirit and Frontier indicated that the deal will end after it is approved by the shareholders of the purchasing airline.
This merger is projected to generate annual revenue of approximately $5.300 billion, based on last year's results.
This announcement sent shares of Denver-based Frontier down 2,2% before the opening bell on Monday.
Meanwhile, Miami-based Spirit's property values rose 12,5%.
Author: Daniel Parra 8:28 am