• Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Live and Let's Fly
  • Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Home » JetBlue » JetBlue Improves Offer For Spirit Airlines…Again
JetBlueNewsSpirit

JetBlue Improves Offer For Spirit Airlines…Again

Matthew Klint Posted onJune 6, 2022November 14, 2023 6 Comments

tail fin of a plane

JetBlue appears determined to acquire Spirit, with a new and improved offer just days ahead of a Spirit Airlines shareholder vote on whether Spirit should merge with Frontier or JetBlue.

Third Time Is A Charm? JetBlue Ups Offer For Spirit Airlines With New Shareholder Prepayment And Higher Reverse Break-Up Fee

The new offer was sent to the Spirit Airlines Board of Directors this morning and includes:

  • Enhanced reverse break-up fee: JetBlue would provide a $350 million ($3.20 per Spirit share) reverse break-up fee, payable to Spirit in the unlikely event the transaction is not consummated for antitrust reasons.
  • Accelerated prepayment of $1.50 per share: JetBlue would prepay $1.50 per share in cash (approximately $164 million) of the reverse break-up fee, structured as a cash dividend to Spirit stockholders promptly following the Spirit stockholder vote approving the combination between Spirit and JetBlue.
  • All-cash premium: JetBlue’s proposal offers Spirit stockholders aggregate consideration of $31.50 per share in cash, comprised of $30 per share in cash at the closing of the transaction and the prepayment of $1.50 per share of the reverse break-up fee.

JetBlue insists that a Spirit – JetBlue merger would be good for competition, creating a viable national competitor to American, Delta, and United. JetBlue CEO Robin Hayes argued:

“Combining JetBlue and Spirit would create a true national competitor to the dominant legacy carriers, delivering low fares and a great experience for more customers, more opportunities and good paying jobs for crew members, and more value for stockholders.

The key features of our Improved Proposal – the up-front cash payment and increased reverse break-up fee – reflect the seriousness of our commitment and underscore our confidence in completing this transaction. Additionally, given the similar regulatory risks of the two transactions and the increased reverse break-up fee we are prepared to provide, we believe our Improved Proposal remains a Superior Proposal by any measure.”

(you can view his full letter here)

The same anti-trust concerns are likely to persist, however. The Spirit Board will consider this proposal ahead of the shareholder meeting.

CONCLUSION

JetBlue appears desperate to absorb Spirit Airlines in order to be able to grow. The latest offer provides an even more generous offer than Frontier and seeks to incentivize stockholders with a $1.50 “advance” to Spirit Airlines stockholders and increase the reverse break-up fee to a degree in which JetBlue hopes Spirit might say, “What have we got to lose?”

My hunch is Spirit Airlines will turn down this offer for the same reason the earlier offers have been turned down, but how the stockholders will vote is a whole different matter.

Get Daily Updates

Join our mailing list for a daily summary of posts! We never sell your info.

You have Successfully Subscribed!

Previous Article Crazy: Ryanair Forcing South African Passengers To Take Knowledge Test In Afrikaans Or Be Denied Boarding
Next Article My 48-Hour Trip From Germany To LA To Get A Passport

About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

Related Posts

  • a screen on a plane

    My Highly Productive Daytime Flight To London On JetBlue

    May 27, 2025
  • Southwest Airlines Checked Bags

    Suicide: Southwest Airlines Eliminates Free Checked Baggage

    May 27, 2025
  • United Flight Attendants Tentative Deal

    At Long Last, United Airlines Reaches Tentative Labor Deal With Flight Attendants

    May 24, 2025

6 Comments

  1. sharon Reply
    June 6, 2022 at 10:51 am

    A jetblue aquisition will be terrible for consumers. Jetblue will significantly decrease capacity upon a successful integration.

    Jetblue’s a320’s have 24 seats fewer. If that plane has 4 flights a day, that’s about 100 seats less per day. Roughyl 30,000 seats per day on conservative estimates of a meger

  2. Jared Houser Reply
    June 6, 2022 at 11:10 am

    JetBlue is a joke! Never will fly them!

  3. SMR Reply
    June 6, 2022 at 11:18 am

    How is JetBlue a joke? Planes are really nice, lots of legroom and decent snacks. I do not understand the hate for B6. Rough patches..yes but all airlines go through them. Spirit / American / United even Delta went through way worse. Here are some facts
    1. Jetblue does not oversell flights (rare scenarios see 1 – 3 but its usually during IRROPS)
    2. B6 MINT destroys DL/AA/UA (sorry…opinion)
    3. B6 standard economy seat is way more spacious then anyone out there
    4. Even More Space product is actually extremely spacious, more then UA/AA/DL extra legroom.
    5. Wifi is fast and free
    6. B6 ops over the last 2 months have improved incredibly. While DL cancelled 1400 flights memorial day weekend, JetBlue ops were mostly normal

    Not sure what all the hate is… the bad experiences happen everywhere and I wish all the airlines could get their act together but JetBlues product is top of the line in economy.

  4. SMR Reply
    June 6, 2022 at 11:26 am

    I will tell you how Spirit / Frontier will end up a joke:
    *the public is mostly unaware how Spirit/Frontier pilots are by far the poorest paid A320 pilots in American of major airlines. Indigo partners has NO PLANS on pilot raises for FIVE years. This to me means part of these merger synergies are based on that. Pilots will leave NK/F9 as fast as they can and recruiting may become tough. That will lead to a future of cancellations and IRROPS like you have not seen. The labor relations through any merger will be a challenge but at lease in the JetBlue merger , all Spirit pilots will get a nice increase!

    I can also tell you , Spirit and Frontier are the last major US airlines using non-AQP pilot training. It is old school and cheap. Not saying it bad but its not NEARLY as good as what Jetblue does for new company pilots and recurrent training. It just goes to show how cheap this new NK/FP airline combined will be. But YES.. you can save a few bucks and sit in that awful seat.

  5. OxyTrojan Reply
    June 6, 2022 at 3:03 pm

    @SMR JetBlue Mint comfort is a joke. Flew from BOS to SAN. Looked beautiful, good food, stylish, but felt like sitting on cement for over 5 hours. Rather have comfort plus on delta.

  6. Dave Edwards Reply
    June 6, 2022 at 4:26 pm

    CNBC’s Jim Cramer feels this will drag out for 2 years and then be rejected for anti trust reasons. He’s not always right but he usually is well informed in his opinions.

    Obviously JetBlue doesn’t think it’s an issue. Time will tell.

Leave a Reply

Cancel reply

Search

Hot Deals for May

Note: Please see my Advertiser Disclosure

Capital One Venture X Business Card
Earn 150,000 Miles Sign Up Bonus
Chase Sapphire Preferred® Card
Earn 100,000 Points
Capital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit Card
Earn 75,000 Miles!
Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card
Earn 75,000 Miles
Chase Ink Business Unlimited® Credit Card
Earn $750 Cash Back
The Business Platinum Card® from American Express
The Business Platinum Card® from American Express
Earn 120,000 Membership Reward® Points

Recent Posts

  • a inside of a plane with lights
    Review: Korean Air 747-8 First Class May 27, 2025
  • a screen on a plane
    My Highly Productive Daytime Flight To London On JetBlue May 27, 2025
  • Southwest Airlines Checked Bags
    Suicide: Southwest Airlines Eliminates Free Checked Baggage May 27, 2025
  • Spring Break JetBlue SAS
    Booked! A Transatlantic Getaway On JetBlue + SAS May 26, 2025

Categories

Popular Posts

  • United Airlines Polaris Lounge Chicago Review
    Review: United Polaris Lounge Chicago (ORD) May 1, 2025
  • United Airlines Refresh Polaris Lounge Chicago
    First Look: United Airlines Reopens Renovated Polaris Lounge In Chicago (ORD) April 29, 2025
  • a hand holding a blue card
    Chase Sapphire Preferred 100K Bonus Offer Ending Soon May 2, 2025
  • Aegean Airlines Feast
    A Feast Fit For A King On Aegean Airlines May 23, 2025

Archives

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    

As seen on:

facebook twitter instagram rss
Privacy Policy © Live and Let's Fly All Rights Reserved. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Live and Let's Fly with appropriate and specific directions to the original content.