JetBlue buys Spirit Airlines
Spirit Airlines $SAVE has been the best performing airline stock over the past year after receiving takeover bids from both JetBlue $JBLU and Frontier $ULCC. JetBlue appears to have had the winning bid. Let’s take a closer look at this deal!
In February, $SAVE announced plans to merge with $ULCC leading to the stock’s outperformance. $JBLU then came in with a higher offer and on July 27th Spirit took it. There’s been some interesting price action as a result!
This merger combines two of the smaller players in the industry but the combined airline would have $11B in revenue and represent 10% of the industry according to Forbes.
Anti-trust regulators aren’t happy. They had previously sued to block a combination of American Airlines $AAL and JetBlue $JBLU.
Want to read about what JetBlue $JBLU needs in order for this deal to go through?
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Hopefully JetBlue is able to fix their issues though… as a consumer I’m not a fan of them because it seems to be the most reliable airline in terms of delays & cancellations. One of its nicknames is JetBoo . Even though Spirit charges you for everything and has a rep of having lackluster services, it’s cheap and does get you where you need to go. It’ll be interesting to see how the overall customer experience changes after this merger.