If Spirit and JetBlue do eventually agree on the terms of a transaction, they will still need shareholder approval as well as antitrust approval from the U.S. Justice Department.
JetBlue Airways upgraded its proposal for Spirit Airlines again as the tit-for-tat bidding war with Frontier Airlines heated up ahead of a June 30 shareholder vote.
JetBlue Airways sweetened the terms of its bid to acquire Spirit Airlines, part of an effort to win over Spirit’s shareholders ahead of a fast approaching vote on whether to merge with Frontier Airlines.
Executives at Spirit Airlines reiterated their opposition to the merger proposal from JetBlue Airways and urged shareholders to approve the competing bid from Frontier Airlines at an upcoming shareholder vote.
JetBlue Airways is slashing its planned schedule for the summer and rest of the year, part of an effort to bolster the reliability of its operations amid chronic staffing constraints.
United Airlines is blaming JetBlue Airways and Spirit Airlines for recent operational issues at Newark Liberty International Airport (EWR) and has urged the FAA to intervene to improve gridlock at the airport.
What happens next depends on a combination of Frontier’s reaction—whether it makes a counteroffer—and how the Spirit board of directors judges the tradeoffs between a relatively safer merger with Frontier, and the prospect of a perhaps more ambitious future with JetBlue.