JetBlue (NASDAQ: JBLU) today confirmed it has submitted a proposal to the Board of Directors of Spirit (NYSE: SAVE) to acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion. The proposal represents a premium of 52% to Spirit’s closing share price on April 4, 2022.
Frontier Airlines and Spirit Airlines announced plans to merge in February of this year. The competing offer by JetBlue would position the airline as the national low-fare challenger to the four large dominant U.S. carriers.
“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. “When we grow and introduce our unique value proposition onto new routes, legacy carriers lower their fares and customers win with more choice. 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.”
JetBlue Airways is the seventh-largest airline in North America by the number of passengers carried. JetBlue is headquartered in the New York City borough of Queens; and also maintains corporate operations in Florida and Utah.