FLORIDA- Diana beach-based Spirit Airlines (NK) and Denver-based Frontier Airlines (F9) are again resuming talks for a merger.
Previously in 2022, both low-cost carriers were in talks to merge their operations under a single entity that would have been the fifth-largest carrier after Big Four.
Spirit Airlines Frontier Merger
Spirit Airlines engages in preliminary merger discussions with Frontier Airlines, sources close to the matter reveal to The Wall Street Journal (WSJ) and there is the possibility that the deal cannot move ahead. These renewed talks emerge as Spirit Airlines navigates potential bankruptcy proceedings.
Frontier and Spirit Airlines operate on very similar ULCC models and they can easily streamline their narrowbody Airbus fleet.
The proposed merger would integrate with Spirit’s broader financial restructuring efforts, specifically addressing the airline’s debt obligations and liabilities. Spirit currently conducts parallel negotiations with bondholders to determine bankruptcy terms.
Spirit Airlines explores multiple financial pathways, including out-of-court restructuring options to stabilize its balance sheet. These alternatives could provide Spirit with debt relief without formal bankruptcy proceedings.
Fleet and Network
According to Flight Connections, Frontier Airlines flies to 78 domestic and 18 international destinations in 12 countries as of October 2024. Frontier Airlines’ main hub is Denver, with secondary hubs in Las Vegas, Orlando, and Philadelphia.
Similarly, Spirit Airlines operates flights to 57 domestic and 28 international destinations in 17 countries.
Spirit Airlines’ main hub is located in Fort Lauderdale, Florida, with secondary hubs in O’hare – Chicago, Fort Worth – Dallas, Detroit, George Bush Intercontinental – Houston, Las Vegas, and Orlando.
Frontier Airlines is more focused on regional routes while Spirit has balanced its domestic and international operations.
Both these carriers make frequent changes to the routes, flight frequencies, and destinations they serve. Now let us see the fleet of both ultra-low-cost carriers.
According to Planespotters.net data, Frontier Airlines has a fleet of 155 aircraft which includes:
- 82 A320neo
- 44 A321neo
- 21 A321-200
- 8 A320-200
Further, Spirit Airlines operates a fleet of 212 aircraft including:
- 91 A320neo
- 64 A320-200
- 30 A321-200
- 25 A321neo
- 2 A319-100
Spirit Airlines since its inception has operated Airbus and McDonnell Douglas aircraft. While, Frontier Airlines operated a wide range of fleets including Airbus, Boeing, De Havilland, and Embraer.
We have compared both carriers in detail here: Frontier vs Spirit: Which low-cost Airline is Best?
Failed Merger Talks
Spirit Airlines revisits merger possibilities with Frontier Airlines, two years after their initial $6.6 billion deal collapsed. The previous agreement included $2.9 billion in Spirit equity plus debt and lease obligations before JetBlue’s (B6) competing $3.8 billion all-cash offer disrupted negotiations.
Frontier’s CEO Barry Biffle acknowledged Spirit’s industry challenges at a May Wings Club event but remained noncommittal about merger prospects. Spirit’s financial position deteriorated after a federal judge blocked its proposed JetBlue merger in March.
Spirit faces mounting financial pressure, extending deadlines to refinance $1.1 billion in credit card processing debt. The airline has fully drawn its $300 million credit line while implementing cost-cutting measures, including pilot furloughs and Airbus delivery deferrals.
The carrier launches premium products and bundled fares to attract higher-spending customers, marking a shift from its traditional ultra-low-cost model. These strategic changes aim to strengthen Spirit’s market position amid ongoing profitability challenges since the pandemic.
Recently, David Neeleman, JetBlue Airways’ founder, condemned Spirit Airlines’ decision to abandon its Frontier Airlines merger for JetBlue’s failed bid. Neeleman, speaking to the Washington Post, identifies this choice as a critical strategic error in airline consolidation efforts.
A potential Frontier merger could provide the financial stability and market consolidation benefits that Spirit sought after a failed JetBlue deal.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
