Frontier slams JetBlue’s unsolicited bid for Spirit Airlines

Frontier Airlines says JetBlue Airways’ unsolicited surprise offer to buy ultra-low-cost rival Spirit Airlines will make for higher fares and less competition. The Denver-based carrier says on 5 April that its bid to buy Florida-headquartered Spirit - announced in February - is a much better deal for both customers and shareholders, even if the JetBlue offer is worth more money. “A combined Spirit and Frontier will deliver $1 billion in annual savings for consumers and offer even more ultra-low fares to more places nationwide, creating America’s most competitive ultra-low fare airline,” Frontier says. “Unlike the compelling Spirit-Frontier combination, an acquisition of Spirit by JetBlue, a high-fare carrier, would lead to more expensive travel for consumers,” the airline continues. “In particular, the significant East Coast overlap between JetBlue and Spirit would reduce competition and limit options for consumers.” Earlier in the day, news leaked that JetBlue had made an unsolicited bid for Spirit worth $3.6b, or $33 per share, a significant premium over Frontier’s offer in February. JetBlue confirmed its bid, and Spirit added that it would “work with its financial and legal advisers to evaluate JetBlue’s proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders.”<br/>