This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEAAI0TF_M.jpg
According to the industry analysts, the Spirit and Frontier merger, which was expected to bring about $1 billion in annual savings for consumers and make the combined company the nations fifth-largest airline by market share, makes sense due to the overlapping business models and different regional strengths of the companies. In a Spirit and JetBlue merger, the analysts see less of a clear fit, given that both airlines are heavily concentrated in the Eastern US. Furthermore, Spirit keeps costs and fares low by charging extra for add-ons, while JetBlue, the sixth-largest airline in the US, offers more premium options and free in-flight perks.
While the board of directors of Spirit has not made a decision yet on which deal to pursue, it will review JetBlues bid.
Either deal has the potential to face scrutiny from the Biden administration. Several progressive lawmakers expressed misgivings about the Frontier and Spirit merger during the last month, with Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont warning about the risks related to ticket prices increases and lower customer service if the deal goes through.
