Search Travel Market Report

algv HPTO
algv
mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle
Sponsored By ALG
Sponsored By ALG
algv

JetBlue’s Deal for Spirit Is Not Done Yet

by Daniel McCarthy / May 16, 2022
Spirit JetBlue Frontier Merger Deal Hostile Takeover

Photo: Carlos Yudica / Shutterstock.com


JetBlue’s deal to buy Spirit Airlines is not completely done just yet.

JetBlue on Monday started a hostile all-cash takeover bid for Spirit, filing a “Vote No” letter that urged Spirit shareholders to vote against the Frontier deal at the upcoming special meeting.

The news comes just a couple of weeks after Spirit announced it was rejecting the JetBlue deal, in favor of a less lucrative offer from Frontier, because of regulatory concerns.

The carrier told Spirit shareholders that it was offering $30 per share in cash and was also ready to “negotiate in good faith a consensual transaction at $33,” which is significantly more (60% more according to JetBlue) than what Frontier is offering (close to $19 dollars a share as of Monday morning).

“JetBlue offers more value – a significant premium in cash – more certainty, and more benefits for all stakeholders. Frontier offers less value, more risk, no divestiture commitments, and no reverse break-up fee, despite more overlap on non-stop routes and their own regulatory challenges,” JetBlue CEO Robin Hayes said in the letter.

“Yet the Spirit Board failed to provide us the necessary diligence information it had provided Frontier and then summarily rejected our proposal, which addressed its regulatory concerns, without asking us even a single question about it. The Spirit Board based its rejection on unsupportable claims that are easily refuted."

“Based on the clear superiority of our offer, we expected the Spirit Board to engage constructively. Given its unwillingness to share necessary information or negotiate in good faith, we adjusted our price accordingly, but will work towards a consensual transaction at $33 per share, subject to receiving the information to support it,” the letter reads.

The future of Spirit is now left to its shareholders who will now vote on the merger with Frontier on June 10. If the merger with Frontier goes through, the combined passenger count from 2019 would have put the merged company at about the same passenger count as JetBlue, which is currently the 6th largest carrier in the U.S. 

  29
  0
alg HPTO
Related Articles
JetBlue Just Changed the Way It Issues Travel Credits
JetBlue’s New York to Paris Flights Are Now Open for Booking
Spirit Airlines Expands Reach with New San José Service
Spirit Airlines Expects Resolution on JetBlue Deal in ‘Next 30 Days’
Frontier Airlines Launches All-You-Can-Fly Summer Pass Called GoWild!
Spirit Airlines Will Fly from Charleston to Three Different Cities Starting in April 2023
JetBlue and American Airlines Expand Northeast Alliance with 11 New Nonstops
Four Major Changes from JetBlue’s TrueBlue Loyalty Overhaul
JetBlue Will Launch New York to Paris Service Next Summer
JetBlue CEO: ‘No Signs of Slowing Demand’ for Travel

MOST VIEWED

  1. Why Travel Advisors Need to Learn to Say No to New Business
  2. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  3. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  4. Government of Canada Updates Its Mexico Travel Advisory
  5. European Union Delays Launch of ETIAS Until At Least 2024
  6. Here’s What the U.S. and Canada Are Saying About Travel and Crime in Mexico

MOST EMAILED

  1. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  2. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  3. Why Travel Advisors Need to Learn to Say No to New Business
  4. European Union Delays Launch of ETIAS Until At Least 2024
  5. Travelers Believe That Working With Advisors Is Only Way to Get a True Luxury Experience
  6. 9 Travel-Advisor Friendly Paris Boutique Hotels to Know About
TMR THIS WEEK
Sponsored by Explora Journeys
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=78f79d51-15c7-ed11-b00b-005056a8720b&Width=350&Height&250

All About Culinary Immersion at Sea

Travel advisors can help their foodie clients enjoy true immersion experiences by booking them on culinary-focused cruises.

Read More...
alg
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Two of Germany’s Busiest Airports Will Be Closed on Monday
Two of Germany’s Busiest Airports Will Be Closed on Monday

Lufthansa is advising its passengers to make alternative plans. 

Read...
Travel Trivia Tuesday: March 21, 2023
Travel Trivia Tuesday: March 21, 2023

What is the largest museum in the world? 

Read...
Travel Agency February Air Ticket Sales Up 54% Over 2022
Travel Agency February Air Ticket Sales Up 54% Over 2022

Travel agency air ticket sales continue to trend upward.

Read...
U.S. Embassy in Mexico Issues Travel Warning for Spring Breakers
U.S. Embassy in Mexico Issues Travel Warning for Spring Breakers

The Embassy recognized that thousands of U.S. citizens visit Mexico each year without issue during spring break. 

Read...
Hundreds of Flights Cancelled Friday Due to Strike at Four German Airports
Hundreds of Flights Cancelled Friday Due to Strike at Four German Airports

There’s another round of significant flight disruptions due to union action in Germany on Friday.

Read...
Air Canada Adds Summer Service to Amsterdam from Montreal
Air Canada Adds Summer Service to Amsterdam from Montreal

The new service will kick off on June 2.

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/BDz_-mzUmZA/0.jpg
Meet South Africa with Your Local Guides
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy