JetBlue bids on Spirit in attempt to derail Frontier deal
“The combination of the two airlines would position JetBlue as the most compelling domestic low-cost challenger to the dominant Big Four US carriers by accelerating JetBlue’s growth,” JetBlue said in its statement.
Spirit said it “will work with its financial and legal advisors to evaluate JetBlue’s proposal and pursue the course of action it determines to be in the best interests of Spirit and its shareholders.”
For its part, Frontier defended its offer as the superior offer for passengers and shareholders.
“A combined Spirit and Frontier will save consumers $1 billion a year and offer even more ultra-low fares to more places nationwide, creating the most competitive ultra-low fare airline of America,” Frontier said, adding that the combination would provide “shareholders with substantial growth potential for the combined company through the synergies of the merger.”
Both Spirit and Frontier operate as what is known in the industry as Ultra Low Cost Carriers, with very low base fares and surcharges for just about anything a passenger needs, including even handbags.
While passengers may like the low fares offered by Spirit and Frontier, they’ve generally given the airlines low customer satisfaction ratings.
Spirit had by far the highest number of passenger complaints in 2021, with 11.5 complaints per 100,000 passengers, according to statistics kept by the US Department of Transportation. JetBlue had the second highest number of complaints on this basis at 6.4, but that was down 43% from a year earlier. Frontier had the third highest number in the industry at 5.8. IN 2020, Frontier had by far the worst complaint rate when it recorded 49.3 complaints per 100,000 customers.
“Customers shouldn’t have to choose between a low fare and a great experience, and JetBlue has shown that it’s possible to have both,” said Robin Hayes, CEO of JetBlue.
Frontier played on this issue, saying that since only 18% of routes flown by Frontier or Spirit are operated by the two carriers, its deal would be much better for airline competition. He argued that a JetBlue-Spirit combination would reduce competition and lead to higher fares.
“It is surprising that JetBlue is considering such a merger at this time given that the Department of Justice is currently suing to block their ongoing alliance with American Airlines,” Frontier said.
cnn
