There's a competition brewing for Spirit Airlines.
Following Frontier Airlines' announcement in February that it would purchase Spirit Airlines as part of a $2.9 billion deal, JetBlue has upped the ante.
JetBlue confirmed that it has submitted a proposal to the Board of Directors of Spirit to acquire the airline for $33 per share in cash.
JetBlue said that it firmly believes its proposal constitutes a "superior proposal" under Spirit's merger agreement with Frontier and represents the most attractive opportunity for Spirit's shareholders.
"Customers shouldn't have to choose between a low fare and a great experience, and JetBlue has shown it's possible to have both," said Robin Hayes, JetBlue CEO.
JetBlue pointed out that legacy carriers often lower prices when the company enters a market, which is not the same as with ultra-low-cost competitors.
"When we grow and introduce our unique value proposition onto new routes, legacy carriers lower their fares and customers win with more choice," said Hayes. "The combination of JetBlue and Spirit-coupled with the incredible benefits of our Northeast Alliance with American Airlines-would be a game-changer in our ability to deliver superior value on a national scale to customers, crewmembers, communities and shareholders. The transaction would accelerate our strategic growth and create sustained, long-term value for the stakeholders in both companies."
Like the merger with Frontier, Spirit and JetBlue would join forces to create the fifth-largest carrier in the country, providing low-fare options that counter those offered by the "Big Four" legacy carriers in the U.S.
"While JetBlue and Spirit are different in many ways, we also have much in common, including a focus on keeping our costs low so we can profitably expand and offer an attractive alternative to the dominant 'Big Four' airlines. We would conduct a full review of Spirit's product offering, operational and customer technology, and talent pool to optimize the combined airline," said Hayes.
The merger of JetBlue and Spirit would build on JetBlue's Northeast Alliance with American Airlines. The airline has deep roots in the New York area, and the combined company would maintain the JetBlue brand and continue to be based in the region.
"Our Northeast Alliance with American Airlines has supercharged our growth in New York and Boston, unlocking opportunities for us to grow where we could not have before. We view a combination with Spirit as perfectly complementing the NEA. These strategic moves aim to increase our relevance and bring the JetBlue competitive effect to more places while deepening our roots in the communities we call home. Throughout the pandemic, Florida has been a bright spot for JetBlue, and this would offer us the opportunity to hire even more crewmembers in the state, increase service in FLL and MCO for our customers, and further expand our training and support center footprint," Hayes said.
JetBlue also noted that there would be greater opportunities for crew members with JetBlue's differentiated culture. The airline said that joining forces with Spirit would "turbocharge" JetBlue's network strategy, diversifying and expanding JetBlue's footprint across the U.S., Caribbean, and Latin America.
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