Spirit Airlines again rejects Frontier takeover bid

Spirit Airlines again rejected Frontier Airlines’s latest takeover bid, opting to instead focus on its restructuring process to bolster financial stability.

Spirit, an ultra-low-cost airline, shut down Frontier’s $2.16 billion acquisition offer Tuesday.

Frontier’s proposal was the same offer it put forward earlier in February in which Spirit's stakeholders would get $400 million in debt and 19 percent of Frontier's common equity. Frontier’s offer did not require Spirit to complete a $350 million equity rights offering, and the $35 million termination fee would be waived.

“Spirit will continue swiftly to advance and conclude its restructuring process, which will significantly deleverage the Company and position it for long-term success,” according to a Spirit press release.

The Florida-based airline said it expects to complete the restructuring in the first quarter of this year after Spirit filed for bankruptcy protection last year.

Last week, Spirit put forward a counterproposal to Frontier in which Spirit stakeholders would get $600 million in debt and $1.185 billion in equity. Frontier rejected the proposal Monday and, once again, reiterated the Feb. 4 offer.

The merger talks between the two budget airlines have been ongoing since 2022. At the time, Frontier was outspent by JetBlue. The Department of Justice (DOJ) sued to block the merger between JetBlue and Spirit in March 2023. The bid got blocked by a federal judge and the attempt was eventually dropped.

Spirit said its hearing to consider confirmation of the airline’s reorganization plan is slated for Thursday.

"We remain convinced that the combination of Spirit and Frontier would have created more value than Spirit’s standalone plan," a Frontier spokesperson told The Hill in a statement. "That said, we are disciplined acquirors and are focused on delivering for Frontier shareholders at a time when our airline is performing well in a dynamic market environment. We wish the Spirit team well."

Updated 11:25 a.m. EST

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