Spirit Will Be Acquired By Jet Blue

JetBlue acquired Spirit

Spirit Airlines Inc. used to schedule flights from the United States to the Caribbean and Latin America. Spirit Airlines Inc.’s headquarters is in Miramar, Florida, in the Miami metropolitan area. In 2020, Spirit was in the eighth position as the largest passenger carrier in North America.

JetBlue Airways is the seventh largest airline in North America. Its headquarters are in Long Island City. It also has corporate offices in Utah and Florida. On average. JetBlue Airways serves 1000 flights daily with domestic and international destinations such as the United States, Canada, Mexico, Central America, the Caribbean, Europe, and South America. JetBlue was started in the year 1998. At first, its headquarters was in Forest Hills. In the year 1999, at John F. Kennedy International Airport, JetBlue was awarded 75 initial takeoffs and landings. Suppose it got its USDOT CPCN in the year 2000.

Spirit Airlines Acquired By Jet Blue

JetBlue and Frontier Airlines bid for a prolonged period for Spirit. In between the process, Frontier withdrew and on July 28, JetBlue acquired Spirit for $3.8 billion.

JetBlue is all set to buy Spirit Airlines for a total of $3.8 billion. This acquisition might make JetBlue the fifth largest airline as approved by the US nation. On Thursday, Frontier withdrew its bidding for Spirit Airlines as Spirit prioritized JetBlue and recommended its shareholders accept a lower offer from Frontier so the antitrust regulators might reject JetBlue’s bid.

Jetblue acquired Spirit

On Thursday, JetBlue paid $33.50 per share for Spirit through cash with a prepayment of $2.50 per share. This cash would be payable when the Stockholders of Spirit Airlines approve the transaction. From January 23, there would be a ticking fee of 10 cents per month. The combination of JetBlue and Spirit would have a total of 458 aircraft. Once the transaction closes, airlines would come into business independently.

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Suppose, the transaction gets completed before December 2023, $33.50 per share would increase to $34.15 per share. This transaction would apply for the case if the transaction closes in July 2024. For unforeseen reasons, if the deal does not close, JetBlue would give Spirit a payment of $70 million. Also, JetBlue would give a payment of $400 million. The anticipation is made by JetBlue that would be an annual savings of $600-$700 million if the transaction gets completed. The combined revenue of both the companies annually would be $11.9 billion.

For now, the regulatory approvals from Spirit’s stockholders should be completed. It is expected to conclude the regulatory process in the first half of 2024. This was all about the acquisition of Spirit Airlines through JetBlue Airways. JetBlue acquired Spirit for $3.8 billion. Meanwhile, stay connected to Daily Market Review for more updates.

Sarchuk Norris
Sawchuk Norris is a big fan of Ishika Hasija, inspired by her works in graphic design.