February 8, 2022
1 min read

Frontier, Spirit Airlines announce merger

The merged airline would expand service to underserved small and mid-sized cities across the United States based on existing networks, which cover over 145 destinations in the US, Latin America and the Caribbean….reports Asian Lite News

US low-cost carriers Spirit Airlines and Frontier Group Holdings, the parent company of Frontier Airlines, have a announced a merger deal.

Valued at $6.6 billion, the transaction would create the 5th largest carrier in the US following American Airlines, Delta Airlines, Southwest Airlines and United Airlines, reports Xinhua news agency.

Management of the two airlines aims to form the most competitive ultra-low cost fare airline in the United States and expand operations in the coming years, according to a joint statement released on Monday.

The merged airline would expand service to underserved small and mid-sized cities across the United States based on existing networks, which cover over 145 destinations in the US, Latin America and the Caribbean.

The new airline expects to add 10,000 direct jobs by 2026 with 350 aircraft on order now.

The combination also is expected to deliver annual run-rate operating synergies of $500 million once full integration is completed.

The new airline would have about $5.3 billion of annual revenues based on 2021 results and a better financial profile with a combined cash balance of around $2.4 billion by the end of 2021, according to the statement

Still, both Spirit Airlines and Frontier Airlines posted annual losses from 2020 to 2021 with expenses inflated in 2021, according to the latest operating results of the two companies issued on Monday.

The merger deal has been approved by the boards of directors of both companies and is expected to close in the second half of 2022, said the release.

William A. Franke, the chairman of Frontier’s board of directors, will serve as the chairman of the board of the combined company.

The combined company’s management team, branding and headquarters will be determined by a committee led by Franke prior to the close of the deal, the statement added.

ALSO READ: White House may cost Democrats US Congress
Previous Story

Picasso’s ‘Guernica’ tapestry back at United Nations

Next Story

Varun Gandhi criticises new JNU VC

Latest from USA

Children die as USAID aid cuts snap a lifeline

Trump administration cut more than 90% of USAID’s foreign aid contracts and $60 billion in overall assistance around the world. Programs serving children were hit hard Under the dappled light of a

US Lifts Syria Sanctions

Syria faces fragile reconstruction path despite sanctions relief. On Friday, the U.S. Treasury Department issued a general license authorizing financial transactions with the interim Syrian government, the central bank, and state-owned enterprises.

Hegseth orders more restrictions on press

Newly restricted areas include his office and those of his top aides and all of the different locations across the mammoth building where the Army, Air Force, Navy, Marine Corps and Space
Go toTop

Don't Miss

US firm Eventbrite announces hiring spree

Eventbrite will host a virtual career fair on April 14,

Harris holds talks with Mexican President

During the Mexico visit, she said Washington aimed to boost