JetBlue makes offer for Spirit in attempt to derail deal with Frontier
CNN
JetBlue Tuesday made an unsolicited $3.6 billion offer for low-fare rival Spirit Airlines in an attempt to derail a proposed deal between Spirit and Frontier Airlines.
JetBlue's cash offer is about 33% more than the value of Frontier's stock-and-cash offer for Spirit. Such a transaction would stop a combined Frontier and Spirit from leapfrogging JetBlue to become the nation's fifth largest airlines behind the four airlines — American (AAL), United (UAL), Delta (DAL) and Southwest (LUV) — that among them carry more than 80% of the nation's air traffic.
"The combination of the two airlines would position JetBlue as the most compelling national low-fare challenger to the four large dominant US carriers by accelerating JetBlue's growth," said JetBlue in its statement.