Spirit Airlines continues to rebuff takeover advances by JetBlue Airlines despite its ongoing hostile acquisition push. The super discount carrier is urging shareholders to vote for Frontier Airlines’ separate offer.
As the twists and turns for investors continue, FOX Business takes a look at what the outcome may mean for passengers.
Understanding an airline merger
Dean Headley, co-author of the Airline Quality Rating from Wichita State University, told FOX Business when a merger happens, airlines will often say “it’s not going to be that much different, we’re going to take care of you.”
Headley said that’s rarely the case.
In order to understand how a merger will impact passengers it’s important to look at both airlines and see where they fly, he added.
“If those two airlines have … ten flights a day from that location to other locations, and they merge, chances are they’re not going to have five or six when they get done,” Headley said.
It’s for efficiency, according to Headley.
“Why would they go continue ten flights a day that are two-thirds full when they can get five flights a day that are packed,” Headley added.
FOX Business compared the pros and cons of the three carriers.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
SAVE | SPIRIT AIRLINES INC. | 20.95 | +0.45 | +2.20% |
Spirit Airlines Pros
Spirit Airlines has a free loyalty program called Free Spirit, offering passengers points for each dollar spent on fares, which can be redeemed “for any fare on any flight with redemptions as low as 2,500…