Frontier bids for Spirit Airlines

The two rival budget airlines frequently receive the most consumer complaints due to flight delays and cancellations. Frontier and Spirit airlines said combining services would help them maintain more reliable schedules. The $2.9 billion cash and stock deal could create the nation’s fifth-largest carrier. The companies anticipate $1 billion in annual consumer savings and plan to add 10,000 new jobs by 2026. Both Frontier and Spirit lost millions in the fourth quarter as airlines across the United States struggled during the pandemic. 

Who approves the deal? The plan is under review from Justice Department and Federal Trade Commission regulators who have taken an aggressive anti-monopoly stance against large mergers under the Biden administration. Frontier and Spirit claim their merger would put pressure on the “big four” airlines that control roughly 80 percent of airline traffic. The merger is expected to finalize in the second half of the year, pending approval from Spirit shareholders.

Dig deeper: Read Brad Littlejohn’s column in WORLD Opinions about how monopolies affect inflation.