Months of talks between the two low-cost carriers, Spirit and Frontier, have now formally broken down, the two airlines confirmed on Wednesday (27 July).
William A Franke, chair of Frontier’s board and managing partner of the airline’s majority shareholder Indigo Partners, said he was disappointed Frontier had not been able to convince Spirit’s shareholders of the merits of the deal.
The decision to terminate the merger agreement comes after Spirit’s shareholders pushed back a vote on the proposal four times.
Reuters reports JetBlue, which upped its bid for Spirit in June to US $3.7 billion, could now conclude a deal as early as Thursday (28 July).
A JetBlue acquisition of Spirit would create the fifth largest US airline, although the deal is expected to be called in by US competition authorities.
"We are pleased the merger agreement with Frontier has been terminated and we are engaged in ongoing discussions with Spirit toward a consensual agreement as soon as possible," said JetBlue in a statement reported by Reuters.
Spirit president and chief executive Ted Christie said: "While we are disappointed we had to terminate our proposed merger with Frontier, we are proud of the dedicated work of our team members on the transaction over the past many months.
“Moving forward, the Spirit board of directors will continue our ongoing discussions with JetBlue as we pursue the best path forward for Spirit and our stockholders."
Franke added: "While we are disappointed Spirit Airlines shareholders failed to recognise the value and consumer potential inherent in our proposed combination, the Frontier board took a disciplined approach throughout the course of its negotiations with Spirit.
"We were focused on offering the appropriate value for Spirit, while prioritising consumers and the best interests of Frontier, our employees and shareholders.
"As we enter our next chapter, Frontier remains well-positioned to deliver significant value to our shareholders as we serve the growing demand for affordable air travel."
