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Spirit and Frontier Resume Merger Talks, With a Deal Possible This Month

Fresh financing alongside leadership turnover increases pressure for a transaction.

Overview

  • Bloomberg, as relayed by Reuters and others, reported active discussions between Spirit Aviation Holdings and Frontier Group Holdings that could yield an agreement as soon as this month, though talks remain uncertain.
  • Spirit is in its second Chapter 11 in less than a year and this week secured about $100 million in emergency debtor-in-possession funding to support operations during restructuring.
  • The new financing includes conditions to evaluate strategic options, which sources say include a potential sale or merger.
  • Frontier announced the abrupt departure of longtime CEO Barry Biffle and named James Dempsey interim CEO shortly before news of the renewed talks.
  • The carriers have attempted combinations before, including a JetBlue-linked sequence that a federal judge blocked on antitrust grounds, and any new deal would likely face regulatory review.