Spirit-Frontier Airlines' merger : antitrust issues /
The case discusses issues related to the merger announcement made by two United States-based discount carriers, namely Spirit Airlines Inc (Spirit) and Frontier Airlines (Frontier), in February 2022. However, the merger is subject to regulatory authority approval. According to the two ultra-low-cost...
| Main Authors: | , |
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| Format: | eBook |
| Language: | English |
| Published: |
London :
SAGE Publications: SAGE Business Cases Originals,
2023.
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| Series: | SAGE business cases.
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| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | The case discusses issues related to the merger announcement made by two United States-based discount carriers, namely Spirit Airlines Inc (Spirit) and Frontier Airlines (Frontier), in February 2022. However, the merger is subject to regulatory authority approval. According to the two ultra-low-cost airlines, the planned merger would enable them to compete better against "the Big Four" airlines in the United States (United Airlines, Delta Air Lines, American Airlines, and Southwest Airlines) and would also provide operational synergies post-merger. However, JetBlue, a low-cost U.S. airline, made a counteroffer to Spirit, offering a more lucrative acquisition price than Frontier. Ted Christie, CEO of Spirit, believed that Frontier was a better fit for Spirit, and JetBlue made a merger offer to defend its market share.However, the antitrust division of the U.S. Department of Justice raised concerns about the merger, stating that it would decrease welfare for consumers due to the possibility of an airfare hike post-merger. Should Christie pursue the deal with Frontier or JetBlue? Is he making the appropriate decision by merging Spirit and not operating it as a separate entity? How is the merger likely to affect other players in the U.S. airline industry? |
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| Physical Description: | 1 online resource. |
| ISBN: | 9781529620801 1529620805 |