NEW YORK (KNX) — JetBlue Airways has made a bid to acquire Spirit Airlines for about $3.6 billion.
Spirit said its board would consider the offer and make the best decision for shareholders. JetBlue offered $33 per share. That's 40% higher than Frontier has offered to pay for Spirit under terms of a deal revealed in February.
In comparison, Frontier's officer in cash and stock was worth $2.9 billion when it was announced, but the airline's shares have fallen since then, making them less valuable for Spirit shareholders.
According to the report, "The board of Spirit has not made a decision yet on which deal to pursue, one of the people said, but plans to review JetBlue’s bid thoroughly."
A Frontier-Spirit tie-up would combine Frontier’s route map in the western United States with Spirit’s network along the East Coast and the Caribbean. Both are discount airlines that offer rock-bottom fares and make up some of the difference by charging extra for many things that bigger airlines include in the ticket price, including carry-on bags and soft drinks.
JetBlue is not the same kind of so-called ultra-low-cost carrier. Moreover, Frontier and Spirit are small enough that their deal might not get close scrutiny from antitrust regulators. Those same regulators already weighed in last year to attempt to block a much more limited partnership between JetBlue and American Airlines.
Shares of Spirit spiked more than 22% on Tuesday after the report came out, according to the New York Times, while trading in Spirit was halted before the market close.
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1010WINS and The Associated Press contributed to this report.
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