NATIONAL NEWS

JetBlue agrees to buy Spirit for $3.8 billion

Jul 28, 2022, 5:26 AM | Updated: 10:26 am

FILE: A Spirit Airlines jet comes in for a landing at McCarran International Airport on May 25, 202...

FILE: A Spirit Airlines jet comes in for a landing at McCarran International Airport on May 25, 2020 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

(Photo by Ethan Miller/Getty Images)

JetBlue has agreed to buy Spirit Airlines for $3.8 billion in a deal that would create the nation’s fifth largest airline if approved by U.S. regulators.

The agreement Thursday comes a day after Spirit’s attempt to merge with Frontier Airlines fell apart. Spirit had recommended its shareholders approve a lower offer from Frontier, saying that antitrust regulators are more likely to reject the bid from JetBlue.

“This combination is an exciting opportunity to diversify and expand our network, add jobs and new possibilities for crewmembers, and expand our platform for profitable growth.” JetBlue CEO Robin Hayes said in a statement.

The combined airline, which will be based in New York and led by Hayes, would have a fleet of 458 aircraft. The airlines will continue to operate independently until after the transaction closes.

JetBlue said Thursday that it would pay $33.50 per share in cash for Spirit, including a prepayment of $2.50 per share in cash payable once Spirit stockholders approve the transaction. There’s also a ticking fee of 10 cents per month starting in January 2023 through closing.

If the transaction is completed before December 2023, the deal will be for $33.50 per share, increasing over time to up to $34.15 per share, in the event the transaction closes at the outside date in July 2024.

If the deal doesn’t close due to antitrust reasons, JetBlue will pay Spirit a reverse break-up fee of $70 million and stockholders of Spirit a reverse break-up fee of $400 million less any amounts paid to stockholders of Spirit prior to termination.

JetBlue anticipates $600-700 million in annual savings once the transaction is complete. Annual revenue for the combined company is anticipated to be about $11.9 billion, based on 2019 revenues.

The deal still needs the required regulatory approvals and approval from Spirit’s stockholders. The companies expect to conclude the regulatory process and close the transaction no later than the first half of 2024.

KSL 5 TV Live

National News

A call about a suspicious vehicle in a Walmart parking lot in St. George ended with a couple of arr...

Collin Leonard, KSL.com

St. George police arrest man wanted in connection with Colorado attempted murder case

A call about a suspicious vehicle in a Walmart parking lot in St. George ended with a couple of arrests, including one person wanted in connection with an attempted murder in Colorado.

9 hours ago

Republican presidential candidate Nikki Haley takes a question from an audience member during a tow...

Bridger Beal-Cvetko, KSL.com

Nikki Haley to visit Utah next week ahead of Super Tuesday presidential caucus votes

Republican presidential candidate Nikki Haley will visit Utah next Wednesday, ahead of the state's GOP presidential preference poll during caucus meetings on Super Tuesday.

11 hours ago

Beyoncé is pictured at the 2024 Grammy Awards in Los Angeles.
Mandatory Credit:	Kevin Mazur/Getty ...

Alli Rosenbloom, CNN

Beyoncé debuts at No. 1 on Billboard’s Hot Country Songs chart and makes history

Beyoncé’s new song “Texas Hold ‘Em” debuted in the top spot of Billboard’s Hot Country Songs chart on Tuesday.

13 hours ago

FILE - Portrait of British pop group The Beatles (L-R) Paul McCartney, George Harrison (1943 - 2001...

Jake Coyle, AP Film Writer

Beatles to get a Fab Four of biopics, with a movie each for Paul, John, George and Ringo

The Beatles are getting the big-screen biopic treatment in a Fab Four of movies that will give each band member their own film.

13 hours ago

WILMINGTON, DELAWARE - JULY 26: Hunter Biden, son of U.S. President Joe Biden, departs the J. Caleb...

Associated Press

Ex-FBI informant charged with lying about Bidens had Russian intelligence contacts, prosecutors say

Prosecutors say a former FBI informant charged with making up a multimillion-dollar bribery scheme involving President Joe Biden had contacts with officials affiliated with Russian intelligence.

13 hours ago

Capital One is acquiring Discover Financial Services, a move that could disrupt the credit card ind...

Elisabeth Buchwald, CNN

America is on the cusp of a new biggest credit card company. Here’s what it could mean for you

Capitol One is acquiring Discover Financial Services in a $35.3 billion all-stock deal.

14 hours ago

Sponsored Articles

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

JetBlue agrees to buy Spirit for $3.8 billion