Frontier Airlines is attempting for a second time to merge with the now bankrupt Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle.
Frontier Group Holdings Inc., the parent company of Frontier Airlines, said Wednesday that the proposed deal would include newly issued Frontier debt and common stock.
Frontier in 2022 but was outbid by JetBlue. However, the to block the $3.8 billion JetBlue deal, saying it would drive up prices for Spirit customers who depend on low fares, and in January. JetBlue and Spirit dropped their merger bid two months later.
filed for in November. The biggest U.S. budget airline, Spirit filed a Chapter 11 bankruptcy petition after working out terms with bondholders. The airline has lost more than $2.5 billion since the start of 2020 and faces totaling more than $1 billion in 2025 and 2026.
Michelle Chapman, The Associated Press
