A frontier Airlines plane near a Spirit Airlines plane at Fort Lauderdale-Hollywood international airport on May 16, 2022 in Fort Lauderdale, Florida.
Joe Raedle | Getty images
Bankrupt Spirit Airlines said he had refused a new CARRIER BUDGET RIVAL FULL OFFER Airlines Frontier.
Frontier said on Wednesday that he had met the board of directors and Spirit managers since he had made his proposal for the indebted merger and stored earlier this month. The leaders of Frontier declared in an email to the homologists of Spirit this week that their plan was better than the proper plan of Spirit to emerge from bankruptcy.
“We continue to believe that by virtue of the current autonomous plan, Spirit will emerge strongly, losing money in terms of exploitation, and it would not be a transaction that we are continuing,” wrote the president of Frontier, Bill Franke And CEO Barry Biffle, in an email on Tuesday to the president of the Mac Gardner spirit and CEO Ted Christie. “As a result, time is essence.”
Christie and Gardner declared to their border counterparts that they rejected the agreement, calling for the conditions “inadequate and inaccessible”, according to a letter shared in a securities file on Wednesday.
The new Frontier merger plan offered Spirit $ 400 million and a 19% participation in Frontier. He also proposed that Spirit creditors provide $ 350 million in new funding, said Spirit.
The leaders of the mind called the frontier’s proposal “risky and costly, without certainty regarding the calendar or the result” and “terribly insufficient financially”.
The two parties were in talks for a possible combination before Spirit filed for bankruptcy.
Frontier and Spirit announced for the first time an agreement to be merged in 2022, but a JetBlue Airways The all -climbing offer derailed this plan. Spirit’s scheduled JetBlue’s planned acquisition was blocked by a federal judge last year, and Spirit took stock in November.
Spirit said he expects to leave the bankruptcy of chapter 11 this quarter and has a hearing date on February 13 to finalize his plan, which eliminates the shareholders of the debtor. He has run to reduce costs in recent months, in particular by reducing some 200 jobs and selling some of his Airbus aircraft.
Budget transporters like Frontier and Spirit fought after Pandemic, as costs and wages have increased and consumers have opted for traveling trips to carriers with options for more spacious and more expensive seats. Spirit was also particularly disputed by a recall of the Pratt & Whitney engine which founded dozens of its jets.
Frontier and Spirit worked to upset their commercial models which were marked by low prices and costs for additional modules, assignments of cabin luggage.
Last year, the airlines deleted the cancellation and change costs for some of their tickets and began to group advantages as well as tickets. Frontier last year said that he would start to offer a premium section at the front of the plane.
