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Frontier Airlines increased its offer by $2 per share to acquire Spirit, and the Spirit Airlines board unanimously recommends it over JetBlue’s more lucrative – but regulatorily more risky – offer. That’s still less than the closing price of Spirit Airlines stock on Friday.
Spirit Airlines announced that their board has unanimously rejected JetBlue’s offer to pay more for the airline than Frontier, with whom the ultra low cost carrier had entered into a sale agreement.
JetBlue’s offer involved paying more but undermining Spirit’s low cost advantage and walking away from their more profitable business model. Instead JetBlue wanted Spirit for its planes, pilots, gates and slots.
One of the major drawbacks of the ‘low cost carriers’ has been that they didn’t set up the ability to put you on another airline when your flight cancels. However Spirit Airlines and Frontier, which are merging, have been flipping the script. And Frontier may have the best cancelled flight approach of any airline now.
Spirit Airlines is being taken over by Frontier. The two large ultra low cost carriers in the U.S. are merging, if the U.S. government allows it, bringing together the primary drivers of lower fares and disaggregated service in the domestic market.
This morning’s Frontier Airlines operational meltdown – on the day of the merger announcement – may not be a good omen.
Spirit Airlines and Frontier Airlines have announced that they are merging. Combined they’ll offer 1000 daily flights and serve 145 destinations in the U.S., Caribbean, and Latin America and the transaction is expected to close in the second half of 2022.
This is effectively Frontier taking over Spirit for three reasons.
Frontier Airlines re-launched their credit card and their elite program four years ago and did something that at the time was revolutionary: a dollar spent on the card earned an elite qualifying mile. But Frontier did something bigger in 2021 and somehow I missed it. All spend over 20,00 per calendar year counts double towards elite status now.
On December 1 I covered an incredibly generous status match offer from Frontier Airlines. For $49 they’ll match against 15 different airlines and 15 different hotel programs. And they’ll even match up to top tier which basically waives all fees at this fee-based airline and makes tickets cancellable without penalty. This offer runs through December 31.
Two things have changed since the offer launched – including that they will now re-match folks who took advantage of this in 2020.
Do you have elite status with an airline – or even a hotel chain? You might even have this just from having a credit card. Frontier Airlines wants to match your status and depending on your current elite level will even give you top tier in their program.
Frontier offers super cheap airfare with a lot of add-on fees. But Frontier’s top level waives all fees and even makes tickets refundable. Basically their incredible 2020 offer is back but they’re willing to match against a lot more programs this time.
Several fights broke out as passengers deplaned a Frontier Airlines aircraft in Minneapolis just before midnight on Friday and headed to baggage claim. Despite the entire incident being caught on video, and shared to social media, no one has been arrested for the Terminal 2 Tussle.
United Airlines announced today that all employees would have to get vaccinated starting in late October.
Now Frontier Airlines announced that all of its employees must be fully vaccinated by October 1. Only not all Frontier employees will actually need to be vaccinated.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
