FILE PHOTOS - (L) A Spirit Airlines Airbus A319 at McCarran International Airport, Las Vegas, on Jan. 14, 2020. (Photo by Robert Smith/MI News/NurPhoto via Getty Images) (R) Frontier Airlines Airbus A320 takes off from Los Angeles International Airpo DENVER, Colo. - Budget carriers Frontier Airlines and Spirit Airlines are set to merge in a $2.9 billion cash-and-stock deal, which will create the fifth-largest airline in the United States.
Frontier Group Holdings, Inc., the parent company of Frontier, is buying Spirit in a deal valued at $6.6 billion when accounting for the assumption of debt and other liabilities.The companies said Monday in a statement that the transaction will provide more low-cost fares for more travelers to destinations in the U.S., Latin America and the Caribbean, "including major cities as well as underserved communities."The combined airline is expected to offer more than 1,000 daily flights to over 145 destinations in 19 countries, across its networks, the statement said.Frontier Group Holdings Inc.
and Spirit Airlines Inc. also anticipate $1 billion in annual consumer savings and are looking to expand their services with more than 350 aircraft on order.
Mac Gardner, Spirit’s chairman of the board, called the two airlines "a perfect fit," noting how the businesses "share similar values, including our longstanding commitment to affordable travel.""At the same time, we have complementary footprints and fleets, including one of the youngest and greenest fleets worldwide," Gardner said in a statement. "Together, we will be even more competitive for our Guests and our Team Members, and we are confident we can deliver on the benefits of this combination to consumers."Existing Frontier shareholders will.