JetBlue Acquires Spirit for $3.9 Billion; Forms the Fifth-Biggest Airline in US

While a human arsenal tends to possess many valuable elements, none of them can really claim to be more important than our ability to grow on a rather consistent basis. You see, when an individual progresses under each and every situation, they eventually become eligible for some notable milestones along the way. This is proven at length by whatever we have achieved so far, with one huge piece of testimony coming from an idea called technology. The reason why we give technology its separate space in such discussions revolves a lot around the creation’s unprecedented skill-set, but alongside that, it is also centred upon the manner in which those skills were able to establish a spectrum-wide impact, therefore turning us into a tech-driven society. Nevertheless, despite achieving so much, and that too in a relatively short period, technology will continue bringing all the right goods to the table. This particular facet has only grown stronger over the recent past, and looking at one acquisition, it can go on to become even better moving forward.

JetBlue has officially reached an agreement to acquire Spirit for a sum of around $3.9 billion, forming the fifth largest airline in the US. The news concludes a lengthy soap opera, which initially saw Frontier announcing its plan to purchase Spirit for $2.9 billion in an all-cash deal. However, just two months after Frontier’s declaration, JetBlue joined the race by upping the offer to $3.6 billion. Beyond the stated amount, JetBlue offered another $200 million in a breakup payout to avoid facing any antitrust hiccups. Now, you’d think it’s obvious who led the dogfight, but hold on a second, as Spirit will reject JetBlue’s offer because of the latter’s North American Alliance (NEA) with American Airlines. This would have been the end, if JetBlue hadn’t returned to instigate a hostile takeover. The company offered $30 per share, but remained open to touching $33, and that’s exactly what did the trick. Spirit shut the door on Frontier and agreed a whopper of a deal to shake up the entire aviation landscape.

“We believe we can uniquely be a solution to the lack of competition in the U.S. airline industry and the continued dominance of the Big Four,” JetBlue CEO, Robin Hayes said in a statement in a reference to American, United, Delta and Southwest. “By enabling JetBlue to grow faster, we can go head-to-head with the legacies in more places to lower fares and improve service for everyone.”

According to certain reports, the combined carrier will have a fleet of 458 air aircrafts, and it will facilitate more than 1,700 flights to 125 destinations in over 30 countries.

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