Skift Take
The proposed JetBlue-Spirit merger has many twists and turns in the last year, and here's a look at the major developments of a deal that would shake up the airline industry.
The proposed merger of JetBlue Airways and Spirit Airlines has been one of the travel industry's most watched developments over the past year and a half, with the two carriers aiming to create the U.S.' fifth largest domestic airline.
Before JetBlue and Spirit proposed merger, Spirit was looking to join forces with Frontier Airlines. So how has the entire scenario played out? Here's a timeline of the massive planned merger, including its major developments.
February 2022: Frontier and Spirit Agree to Merge in $6.6 Billion Stock and Debt DealFrontier and Spirit unveiled plans in February 2022 to merge in a deal that would create the U.S.' fifth-largest carrier and one serving more than 145 destinations in 19 countries.
The transaction is valued at $6.6 billion, including the $2.9 billion equity value of Spirit as well as net debt and operating lease liabilities.
They aimed to close the transaction in the second half of 2022.
Several public advocacy groups the following month called on U.S. regulators to block Frontier and Spirit's proposed merger. Public Citizen, Fight for the Future and seven other groups wrote in a letter to the Transportation and Justice Departments that the deal “would destroy competition in the only competitive market segment of the highly consolidated airline industry.”
Eight lawmakers — including Senators Elizabeth Warren (D-Massachusetts) and Bernie Sanders (I-Vermont) and Representative Alexandria Ocasio-Cortez (D-New York) — wrote a separate letter expressing their concerns about the merger, saying the "resulting Spirit-Frontier carrier could hurt consumers in numerous ways, consolidating market power for the airlines and reducing choices for travelers."
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