Investors may obtain additional information regarding the interests of such participants by reading the proxy statement and other relevant materials regarding the proposed transaction when they become available. As such, there will be a massive dilution. We make it possible for our Guests to venture further and discover more than ever before. Young, though, said October was the soonest his schedule would allow. Spirit Airlines regularly ends up as the worst, or close to the worst, when airlines are ranked by the rate of consumer complaints. That was worth about $2.65 billion at Frontier's closing price on Tuesday, and Spirit shareholders would have owned 48.5% of the combined company. Thus, I believe JetBlue's argument of the merger potentially having a positive effect on the market to be more reasonable. Spirit CEO Ted Christie said JetBlue's proposed merger has three "puzzle pieces" that make it unlikely to ever occur. Ted Christie, President and CEO of Spirit Airlines, said, "This is an important step forward on our path to closing a combination that will create the most compelling national low-fare challenger to the dominant U.S. carriers. New Lawsuit Alleges Spirit-JetBlue Merger Will Cause Fares To Rise By Linnea Ahlgren Published Jan 2, 2023 The two airlines have especially large market shares at FLL and MCO. Spirit is reviewing our proposal now and we believe their shareholders will expect them to seriously consider our offer. All these arguments by the DOJ have a legal footing under Section 7 of the Clayton Act. Sometimes they take advantage of opportunities to soften competition through coordinated actionslike "follow-the-leader" price increasesthat lead to higher fares or reduced capacity. We look forward to continuing our ongoing discussions with regulators as we work toward completing the transaction and delivering value to Team Members, Guests and stockholders.". Travel Plans Through The End Of The Year A Big Finish! Judge William, assigned to the case, likely has a favorable view towards corporate mergers. Frontier-Spirit merger promises better deals and service; critics aren't so sure, announced their plan to merge in February. The agreement Thursday capped a months-long bidding war and arrives one day after Spirit's attempt to merge with fellow budget carrier Frontier Airlines fell apart. Therefore, I believe that JetBlue and Spirit Airlines have a chance at winning the case against DOJ, which makes Spirit Airlines a buy and JetBlue Airlines a hold. While Spirit shareholders have approved the buyout, the deal could still face a challenge from federal antitrust regulators. The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines (AAL.O) and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. According to the United States Bureau of Transportation Statistics, in 2022, JetBlue had about 5.5% market share while Spirit had about 4.9% market share. I will never completely understand Alaska purchasing Virgin America. Transaction Expected to Close No Later Than the First Half of 2024. "Indeed, under federal antitrust law, the transaction is presumptively illegal on more than 150 routes and markets were JetBlue and spirit fly today. Crashed UFOs? With a larger footprint, the combined airline will bring JetBlue's low fares and much-loved, award-winning onboard service to more customers and . JetBlue to buy Spirit for $3.8 billion in push to become the fifth They will have to decide whether to have a lower-cost airline and slightly higher-cost flying to the same destination. JetBlue carries customers to more than. United Aviate Academy Faces Concerning Allegations, Flight Attendants On British Airways Skip Meal Service So They Can Rest, United Airlines CEO Caught Flying Private Jet When United Could Not Get Him Home. When used in this press release, the words "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Delta/Northwest is a classic case of an end-to-end airline merger, and it has worked out rather well. "The Big Four airlines have a lock on about 80% of the market," the company said in a statement. BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's (JBLU.O) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc (SAVE.N). We wanted to be transparent with you about why we would consider buying another airline, and if we reach an agreement, we will let you know as soon as we are legally allowed to. Spirit stock closed at $19.81 on Wednesday. Exclusive news, data and analytics for financial market professionals, Reporting by Nate Raymond in Boston and David Shepardson in Washington; editing by Jonathan Oatis, Law firm Clifford Chance posts increased revenue, stalled profits, Shearman real estate finance partner is latest exit as merger looms, Corporate attorneys dont want to pay law firms for ChatGPT whenthey could use it themselves, How litigation funding drives progress in the ESG agenda, Italy wins EU nod to clinch 18.5 billion euros in post-COVID funds, India, UK could sign trade deal this year, Indian trade-ministry official says, Lincoln National's commercial real-estate exposure targeted by two hedge funds, Turkey earthquake contributed to $43 billion in first-half insurance losses, Munich Re says. JetBlue Spirit merger: New offer could spoil Frontier-Spirit merger JetBlue says it will end alliance with American to save Spirit merger JetBlue + Spirit | The Best of Both Airlines Duh. A line of Spirit Airlines jets sit on the tarmac at the Orlando International Airport on May 20, 2020, in Orlando, Fla. JetBlue Airways has agreed to buy Spirit Airlines for $3.8 billion and create the nation's fifth-largest airline if the deal can win approval from antitrust regulators. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. The company's market capitalization is about $2.26 billion, far smaller than the price it is paying for Spirit Airlines, and the company's cash stands at about $1 billion. Summer Bridge Scholars Program builds bonds, promises greater retention rates among first-year students, Photos: Outdoor misters, crafts and a new mural. Customers throughout the United States will benefit from an independent spirit. He can be reached at [email protected]. Frontier is slashing fares to as low as $19 in a preemptive strike at JetBlue's new merger agreement with Spirit. American Airlines alliance could derail merger between JetBlue and Spirit News broke shortly before markets closed today that JetBlue has made an all-cash offer to acquire Spirit Airlines, offering 40% more than Frontier Airlines. Award-winning service, the most legroom in coach, free wi-fi, live TV, movies, snacks, and more. Information regarding Spirit's directors and executive officers is contained in Spirit's definitive proxy statement, which was filed with the SEC on March 30, 2022. Therefore, I believe Spirit Airlines is a buy while JetBlue is a hold due to the high acquisition fee. Spirit CEO Ted Christie is being thrust into the awkward position of defending a sale to JetBlue after arguing vehemently against it, saying that antitrust regulators would never let it happen. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, those listed in JetBlue's and Spirit's U.S. Securities and Exchange Commission ("SEC") filings, matters of which JetBlue or Spirit may not be aware, the coronavirus pandemic including new and existing variants, the outbreak of any other disease or similar public health threat that affects travel demand or behavior, the occurrence of any event, change or other circumstances that could give rise to the right of JetBlue or Spirit or both of them to terminate the merger agreement; failure to obtain applicable regulatory or Spirit stockholder approval in a timely manner or otherwise and the potential financial consequences thereof; failure to satisfy other closing conditions to the proposed transactions; failure of the parties to consummate the proposed transaction; JetBlue's ability to finance the proposed transaction and the indebtedness JetBlue expects to incur in connection with the proposed transaction; the possibility that JetBlue may be unable to achieve expected synergies and operating efficiencies within the expected timeframes or at all and to successfully integrate Spirit's operations with those of JetBlue, and the possibility that such integration may be more difficult, time-consuming or costly than expected or that operating costs and business disruption (including, without limitation, disruptions in relationships with employees, customers or suppliers) may be greater than expected in connection with the proposed transaction; failure to realize anticipated benefits of the combined operations; demand for the combined company's services; the growth, change and competitive landscape of the markets in which the combined company participates; expected seasonality trends; diversion of managements' attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; risks related to investor and rating agency perceptions of each of the parties and their respective business, operations, financial condition and the industry in which they operate; risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; ongoing and increase in costs related to IT network security. I dont think the merger will face much resistance from regulators as the parties are too small to move the market. If the deal doesn't close due to antitrust reasons, JetBlue will pay Spirit a reverse break-up fee of $70 million and pay Spirit shareholders $400 million, minus any amounts paid to the shareholders prior to termination. JetBlue Airways reached a deal to buy Spirit Airlines on Thursday, a merger that could reshape the airline industry by putting pressure on the nation's four dominant carriers. Its hard to know because you dont know whether the combination would allow them to raise the fares somewhat. Official: JetBlue & Spirit Plan To Merge - One Mile at a Time
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