We thought those animals on the Frontier Airlines livery were just hanging around looking cute. Turns out they were biding their time, plotting. And now they've made their move. Frontier just announced its planned purchase of fellow ultra-low-cost-carrier Spirit Airlines. The result will be a low-cost juggernaut, ranking fifth in size among America's airlines. One of our more prescient contributors, Steven Kimball, suggested this merger back in 2016. And from the airlines' perspective the merger makes a lot of sense.
Obviously there's the similarity in their approach to bare-fare pricing and bare-bones service. But also the all-Airbus narrowbody fleet, which will definitely contribute to a smoother merger and operational synergies. Both airlines operate the A320neo, and the new combined fleet will boast great fuel efficiency (cramming a ton of passengers into each plane also helps efficiency, I guess).
What's the upshot for passengers? The airlines are trying to spin this as a positive, with Frontier loyalists getting better access to Spirit's network in Central and South America, and Spirit-ers gaining more destinations in the western United States. The combined airline's heft may help it better compete with the big four. At the same time, this means fewer individual airlines within the ULCC segment, which may drive up fares in that part of the market.
Also it's no sure thing that the government will approve this plan. On one hand, the current administration has expressed a desire to keep inter-airline competition strong, and has been less friendly to mergers and partnerships. On the other hand, the administration is a little more embattled now and may not want to pick this fight. Or they may buy into the two airlines' argument that a larger fifth player in the market is better for competition overall.
Spirit Airlines and Frontier Airlines, two major low-cost airlines of the United States (US) are merging together at a deal valued at $6.6 billion. This would make the newly merged entity the fifth largest airline in the country. The deal […]
Frontier Airlines is about to get a lot larger: Frontier Airlines has agreed to buy Spirit Airlines for $25.83 a share reflecting a cash deal that will be valued at $6.6 billion, including debt. Spirit equity stockholders will receive 1.9126 shares of Frontier stock plus $2.13 in cash for each Spirit share they own. The […]
Frontier Airlines is celebrating its new growth in the Caribbean and Latin American markets with a campaign to underscore the plight of endangered animal species in six popular destinations the airline currently serves in the region. Consumers are encouraged to participate by choosing the next endangered animal to be featured on the tail of one […]
Frontier Airlines today announced 13 nonstop routes from two new airports: Chicago Midway International Airport (MDW) and William P. Hobby Airport (HOU) in Houston. The expansion in Chicago and Houston complements Frontier’s existing service in the two markets at Chicago O’Hare International Airport (ORD) and George Bush Intercontinental Airport (IAH). To celebrate the new flights […]
