Crabs on a plane pinch budget US airline deal
12/02/2025 18:11
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Jonathan Guilford
NEW YORK, Feb 12 (Reuters Breakingviews) - Spirit
rejected rival Frontier’s latest takeover bid and shared
synergies worth some $5 bln in favor of a post-bankruptcy
standalone future. The suitor, previously thwarted by
shareholders, is now at odds with creditors. Crustacean
mentality has sabotaged the sanest outcome.
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CONTEXT NEWS
Budget U.S. carrier Spirit Airlines on February 11 rejected
a revised acquisition offer from rival Frontier Airlines and
said it would instead pursue a standalone plan to emerge from
bankruptcy on February 13.
Frontier offered senior debtholders $400 million of
restructured notes and 19% of the equity in the combined
company. Under Spirit’s current plan, creditors would receive
$840 million of restructured debt.
(Editing by Jeffrey Goldfarb and Streisand Neto)
((For previous columns by the author, Reuters customers can
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Jonathan.Guilford@thomsonreuters.com))