JetBlue Airways Makes Hostile Bid for Spirit Airlines

The situation with Spirit Airlines, Frontier Airlines, and Jetblue Airways just got more complicated.

Spirit Airlines had planned to merge with Frontier Airlines to create a single budget airline, but JetBlue wanted in on the deal and offered to buy Spirit Airlines instead for a higher price. Although Spirit rejected JetBlue’s offer (twice), the airline isn’t giving up. Now, JetBlue has made a hostile bid for Spirit.

Spirit Airlines is the 2nd busiest airline at the Orlando International Airport, making it a popular choice for passengers looking to fly to Disney World or Universal Orlando. Its success at this airport has made it an attractive acquisition, which both Frontier and JetBlue have noticed. Frontier had plans to merge with Spirit Airlines, but JetBlue countered with an offer to buy the airline instead. The JetBlue offer was rejected by Spirit.

Because Spirit Airlines rejected JetBlue’s offer twice — stating that the offer “is not reasonably capable of being consummated” and has “an unacceptable level of closing risk” — JetBlue is “going hostile in its bid for Spirit Airlines and asking shareholders of the low-cost carrier to reject a proposed $2.9 billion acquisition by Frontier Airlines” (The Orlando Sentinel).

JetBlue is turning to the shareholders after Spirit’s board showed they were unwilling to consider JetBlue’s offer and were planning to move forward with Frontier.

One reason Spirit cited for rejecting the $3.6 billion offer from JetBlue is that JetBlue has an alliance with American Airlines in the Northeast that could be a problem for antitrust regulators.

Spirit Airlines shareholders will vote on the Frontier bid (which is supported by the Spirit Airlines board) on June 10th.

JetBlue offered $33 per share in cash last month but changed its offer to $30 per share later on. The airline did say they would pay $33 per share “if the board at Spirit enters talks and provides data that JetBlue has requested.” Apparently, the lower price was in retaliation to Spirit’s refusal to share certain information with JetBlue.

JetBlue CEO Robin Hayes wrote that “the Spirit Board based its rejection on unsupportable claims that are easily refuted.” He also claimed that “JetBlue is offering a significant premium in cash, more certainty, and more benefits for all Spirit investors.”

However, the bid from Frontier Airlines “would let Spirit shareholders keep 48.5% of the combined airline.” We’ll continue to watch for more developments on this story, so stay tuned with AllEars.

Click here to learn why it might be harder to book a JetBlue flight this summer.

Join the AllEars.net Newsletter to stay on top of ALL the breaking Disney News! You'll also get access to AllEars tips, reviews, trivia, and MORE! Click here to Subscribe!

What do you think about the new development with JetBlue Airways? Let us know in the comments.