US low-cost airline JetBlue reached an agreement Thursday on Gain the soul of a rival $3.8 billion.
Announcement of purchase that you should receive The green light from the organizers and shareholders, It comes a day after Frontier, another airline, abandoned its proposed merger with Spirit.
If realized, the new group will become the fifth airline in the United States in terms of the number of places offered, behind the “Big Four” formed by American, United, Delta and Southwest.
We will get 77 million customers s It will capture 9% of the market share American, according to figures provided by the two companies.
“Spirit and JetBlue will continue to advance our shared goal of transforming the industry for Reducing fares for the big four airlinesRobin Hayes, JetBlue CEO, said in a statement.
Spirit and Frontier announced in February its intent to get closer.
But a few weeks later, JetBlue surprised Spirit shareholders with a better financial offer.
Faced with the rejection of Spirit’s board, JetBlue launched a hostile takeover bid in May.
Spirit executives have repeatedly expressed their preference for a deal with Frontier, saying competition authorities would likely refuse to partner with JetBlue. But they did not convince the shareholders.
The extraordinary general assembly meeting to approve the merger with Frontier has been postponed four times and Finally the process was cancelled.
In the deal announced Thursday, Jetblue is offering a cash boost to Spirit shares, at $33.50 per unit, 38% more than the stock’s closing price on Wednesday.
The two companies expect to complete the transaction before the end of the first half of 2024.
Spirit shares rose just over 4% to $25.29 in pre-open electronic trading on Wall Street Thursday.
Jet Blue They gained 0.83% to $8.46.
We are proud to announce JetBlue & Tweet embed They will come together to create a bigger and better JetBlue. After closing, we’ll be offering over 1,700 daily flights to over 125 destinations – and the low prices and award-winning service you know and love. Learn more: https://t.co/K0uz5rX3A1 pic.twitter.com/CjKzkhLJXO
– Jet Blue (@ Jet Blue) 28 July 2022