NEW YORK, Jan. 29 (Xinhua) -- U.S. Frontier Airlines is attempting for a second time to merge with Spirit Airlines, which declared bankruptcy late last year as the country's budget airlines struggle.
Frontier Group Holdings Inc., the parent company of Frontier Airlines, said on Wednesday that the proposed deal would include newly issued Frontier debt and common stock.
Frontier tried to merge with Spirit in 2022 but was outbid by JetBlue. However, the Justice Department sued to block the 3.8 billion U.S. dollars JetBlue deal, saying it would drive up prices for Spirit customers who depend on low fares, and a federal judge agreed in January. JetBlue and Spirit dropped their merger bid two months later.
Spirit filed for bankruptcy protection in November. Spirit, the biggest U.S. budget airline, filed a Chapter 11 bankruptcy petition after working out terms with bondholders. The airline has lost more than 2.5 billion dollars since the start of 2020 and faces looming debt payments totaling more than 1 billion dollars in 2025 and 2026, according to The Associated Press.
