Spirit Rejects Frontier's Acquisition Offer

Frontier Airlines has made another attempt to merge with Spirit Airlines, proposing a deal involving new debt and stock issuance to create a stronger low-cost carrier. Spirit, which filed for bankruptcy in November after a failed merger with JetBlue, has rejected Frontier's offer, deeming it financially insufficient and inadequate. Despite this, Frontier remains open to negotiations, highlighting the strategic benefits and potential synergies of the merger. The proposed merger is seen as a means to rescue Spirit from its financial woes and offer more value than Spirit's standalone restructuring plan, which Frontier argues would leave Spirit unprofitable with a high debt load. The deal aims to revive a partnership initially attempted in 2022 but thwarted by JetBlue's higher offer, which was later blocked by a federal judge. Frontier's stock has seen slight gains following the announcement of this renewed proposal.