The US’ two largest low-cost carriers, Frontier Airlines and Spirit Airlines are to merge in a $6.6 billion deal to create the country’s fifth largest airline, the CEOs announced this Monday.
“This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” said Ted Christie, Spirit President and CEO in a statement.
Frontier Airlines will have a 51.5% share in the merged company with Spirit shareholders receiving 1.9126 shares of Frontier and an additional $2.13 for each share of Spirit they hold, a 19% premium over the value of their shares on Frida’0s close.
According to the companies the deal will allow them to add 10,000 news jobs by 2026. The company’s have yet to determine a name for the new company.