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Aircraft. Frontier and Spirit announce merger

A 6.6 billion dollars deal to build US low-cost giant

A new low-cost airline giant will emerge in the US. Frontier and Spirit have announced that they are planning to merge. The economic value of the operation is almost USD 3 billion dollars, which, if debt is taken into account, is equivalent to USD 6.6 billion. The Group aims to have a fleet of 500 aircraft by 2026. The new Group would rank fifth among the country's largest airlines: behind Delta, United, American and Southwest. 

The aim of the merger is to create "the most competitive ultra-low fare" in the country. The two low-cost carriers will create a large point-to-point network to maximise operations due to the fact that both have relatively complementary transport networks: the former operates mainly in the US West and Midwest, while the latter operates to Caribbean and Latin American destinations.

It is estimated that both will operate over 1,000 daily flights and 650 direct routes to 145 airports. The Group will assemble a fleet of 283 aircraft, rising to 493 by 2026. Based on 2021 financial results, the future company will have a potential turnover of 5.3 billion dollars. This will be achieved once the merger is fully implemented in 2026.

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AVIONEWS - World Aeronautical Press Agency