JetBlue, Frontier each make case for Spirit takeover

JetBlue Airways Wednesday mounted a vigorous defense of its unsolicited $3.6b bid to acquire ultra-low-cost carrier Spirit Airlines, saying the company is "highly confident" of securing regulatory approval for the deal. The New York-based carrier on Tuesday surprised Wall Street with a $33 per share cash offer, potentially derailing a $2.7bi merger plan between Spirit and Frontier Group Holdings. Frontier on Wednesday said it remained committed to its merger with Spirit as that would create the country's "most competitive" airline and offer more ultra-low fares to consumers. JetBlue's proposed deal is widely expected to attract close antitrust scrutiny from President Joe Biden's administration, which has taken a tough stance against mergers that may reduce competition and increase prices for consumers. The carrier said while it expects a lengthy regulatory process, it is counting on its track record of lowering fares and increasing competition to get the nod. "We are convinced... that average fares come down more when JetBlue flies into a legacy market than when an ultra-low-cost carrier does," JetBlue CE Robin Hayes told investors on a call. Some analysts, however, are not sure the administration will buy the argument that the acquisition would translate into lower consumer costs as JetBlue's fares are higher than Spirit's. JetBlue also has plans to remove some seats on Spirit's planes. White House National Economic Council Director Brian Deese on Wednesday declined to comment on JetBlue's bid, but said the Biden administration takes "very seriously" the impact of industry consolidation. JetBlue and American Airlines Group are already facing a lawsuit from the US Department of Justice over their Northeastern Alliance.<br/>