Frontier makes another bid for Spirit Airlines

by | Jan 29, 2025

Denver, CO – Frontier Group Holdings, Inc. (NASDAQ: ULCC), the parent company of Frontier Airlines, confirmed on January 29, 2025, that it made a proposal to merge with Spirit Airlines, Inc. through the issuance of newly issued Frontier debt and common stock.

The proposed merger would provide significant value to Spirit’s financial stakeholders, exceeding the value of Spirit’s standalone restructuring plan. Spirit’s financial stakeholders could benefit from the growth potential of a combined low-cost carrier and significant synergies resulting from the merging of both airlines’ operations.

Bill Franke, Chair of Frontier’s Board of Directors and managing partner of Indigo Partners LLC, commented, “This proposal reflects a compelling opportunity that will result in more value than Spirit’s standalone plan by creating a stronger low-fare airline with the long-term viability to compete more effectively and enter new markets at scale.” He also expressed hope that discussions would lead to an agreement benefiting all stakeholders, including consumers, team members, communities, partners, creditors, and shareholders.

Barry Biffle, CEO of Frontier, added, “While we are pleased with the strong results Frontier has been able to deliver through the execution of our business strategy, we have long believed a combination with Spirit would unlock additional value creation opportunities.”

Frontier has since engaged in talks with Spirit’s board of directors, management team, and financial stakeholders about the proposal. Frontier’s discussions include materials that demonstrate how Spirit’s standalone restructuring plan could lead to an unprofitable airline with a high debt load, presenting limited chances for long-term success.