Spirit Airlines has terminated its merger agreement with rival US low-cost carrier Frontier Airlines – and will continue talks with JetBlue.
The failure of the merger follows efforts by JetBlue to persuade Spirit shareholders to reject the deal with Frontier.
JetBlue is close to a deal to buy Spirit that could be announced on Thursday (July 28), according to a report by Reuters.
Ted Christie, president and chief executive of Spirit Airlines, said: “While we are disappointed that we had to terminate our proposed merger with Frontier, we are proud of the dedicated work of our team members on the transaction over the past many months.
“Moving forward, the Spirit board of directors will continue our ongoing discussions with JetBlue as we pursue the best path forward for Spirit and our stockholders.”
Frontier Group Holdings, the parent company of Frontier, said there were “significant growth opportunities ahead as a standalone company”.
William A. Franke, chair of Frontier’s board and managing partner of Indigo Partners, Frontier’s majority shareholder, commented: “While we are disappointed that Spirit Airlines shareholders failed to recognise the value and consumer potential inherent in our proposed combination, the Frontier board took a disciplined approach throughout the course of its negotiations with Spirit.
“We were focused on offering the appropriate value for Spirit, while prioritising consumers and the best interests of Frontier, our employees and shareholders.
“As we enter our next chapter, Frontier remains well-positioned to deliver significant value to our shareholders as we serve the growing demand for affordable air travel.”
More: JetBlue ‘standing ready’ for binding merger with Spirit Airlines
Spirit shareholders urged to back Frontier merger despite counter JetBlue bid