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 has already been approved by the boards of both companies. With the merger going forward, Frontier Airlines will a majority stake of 51.5%.
“This transaction is centred around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” Ted Christie, president and CEO of Miramar, Fla.-based Spirit, said in a statement announcing the deal.