JETBLUE AIRWAYS CORP

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Real-time Estimate Cboe BZX - 01:48 2022-12-05 pm EST
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Spirit Airlines sets shareholder vote on sale to JetBlue

09/13/2022 | 02:43pm

MIRAMAR, Fla. (AP) — Spirit Airlines has scheduled a shareholder vote on JetBlue's proposed $3.7 billion acquisition of Spirit for Oct. 19.

Investors who owned Spirit shares on Monday will be eligible to vote, the airline said in a securities filing.

The sale would still need approval from U.S. antitrust regulators, a process that is expected to take several months.

Spirit's board approved a sale to JetBlue on July 28. Spirit leaders preferred a merger with Frontier Airlines, but that stock-and-cash deal, worth far less, failed to gain enough support from Spirit shareholders.

JetBlue leaders believe that buying Spirit will give their airline enough heft to be a more formidable challenger to the dominant U.S. carriers: American, United, Delta and Southwest.

The addition of Spirit's fleet would result in New York-based JetBlue having around 450 planes and make it the fifth-largest U.S. airline.

Spirit shares were nearly unchanged at $22.93 in afternoon trading Tuesday, well below JetBlue's offer of $33.50 per share plus a ticking fee to cover the time regulators need to review the deal.

Spirit started as a charter operator and now operates as a so-called ultra-low-cost carrier that has low fares but adds more fees than conventional carriers. It is based in Miramar, Florida.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News

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