After a deal between Spirit Airlines and Frontier Airlines fell through, a new sales agreement was reached between Spirit and JetBlue.
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JetBlue has agreed to buy the low-cost airline for $3.8 billion, The Associated Press reported
The move will create the country’s fifth largest airline.
JetBlue will pay $33.50 per share in cash, including an upfront payment of $2.50 per share in cash once Spirit shareholders have approved the deal.
When the deal is done, the airline will have 458 aircraft in its fleet.
JetBlue and Spirit will operate independently until the deal is finalized.
Spirit CEO Ted Christie said Wednesday that he was disappointed that the merger with Frontier Airlines fell through, but that his company was looking to merge with JetBlue.
“Spirit’s board of directors will continue our ongoing discussions with JetBlue as we pursue the best path forward for Spirit and our shareholders,” he said in a statement. AP.
Frontier had offered more than $2.6 billion in stock and cash, which was lower than JetBlue’s original offer of $3.7 billion, on AP reported
JetBlue said in a statement Wednesday that it was satisfied that the Spirit/Frontier deal fell through.
Check back for more on this developing story.
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