Frontier and Spirit Airlines come together to create the fifth-largest U.S. airline
on Monday unveiled plans to create the fifth-largest U.S. airline in a $2.9 billion tie-up likely to tighten competition against traditional carriers.
"In a competitive industry like ours, the lowest costs always win," Frontier Chief Executive Barry Biffle told analysts. "These low costs will, in turn, enable us to keep our fares low for customers."The move comes at a time when the U.S. airline industry is grappling with volatility in travel demand due to new COVID-19 variants. At the same time, costs are soaring on a combination of rises in wages, fuel prices and airport charges.
The merger, which is expected to close in the second half of 2022, is projected to result in synergies of $500 million a year, mainly through operational savings. Peter McNally, global sector lead for industrials, materials and energy at research firm Third Bridge, said cost pressure is the biggest threat to recovery in the airline industry's profit.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Spirit Airlines and Frontier Airlines to merge, creating nation's 5th largest carrierFrontier Airlines and Spirit Airlines announced a merger that would create the fifth-largest airline in the U.S. and made their stock prices jump on Wall Street early Monday.
Baca lebih lajut »
Frontier Airlines buying Spirit in $3B deal, creating nation's fifth largest carrierThe merger of these two budget airlines is expected to make both more competitive against larger rivals
Baca lebih lajut »
Frontier Airlines buying Spirit in $3B deal, creating nation's fifth largest carrierThe merger of these two budget airlines is expected to make both more competitive against larger rivals
Baca lebih lajut »
Frontier Airlines offers almost $3 billion for Spirit in low-cost airline mergerFrontier Airlines is offering to buy Spirit Airlines in a $2.9 billion cash-and-stock deal that would create the nation’s fifth largest carrier.
Baca lebih lajut »