Low-cost carriers Spirt, Frontier merge

Popular low-cost airline companies Frontier and Spirit today announced a merger valued at over US$6 billion.

The boards of both companies approved the deal over the weekend, with Frontier Airlines controlling 51.5 percent of the merged airline while Spirit will hold the remaining 48.5 percent.

In the release announcing the agreement, Bill Franke, who is the current chair of Frontier said the combined carrier “will create America’s most competitive ultra-low fare airline for the benefit of consumers.”

“We are thrilled to join forces with Frontier to further democratize air travel,” insisted Ted Christie, President and CEO of Spirit.

“This transaction is centered 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. We look forward to uniting our talented teams to shake up the airline industry while also continuing our commitment to excellent Guest service,” Christie further added.

Still to be determined is the name of the combined carrier, who will be CEO, and the location of the airline’s headquarters.

The deal is said to make the new airline the fifth largest in the United States, with Franke as the new chair.

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