Frontier Airlines is buying larger rival Spirit, a move the budget airlines say will create a cheap flights powerhouse and more formidable competitor to the big …
Frontier Airlines is buying larger rival Spirit, a move the budget airlines say will create a cheap flights powerhouse and more formidable competitor to the big four U.S. airlines. The airlines released few details on Monday’s deal beyond the financial terms and expected timeline. The merger, which would create the fifth-largest U.S. carrier based on seat capacity and seventh largest based on revenue, is expected to be completed in the second half of the year barring any major regulatory obstacles or other challenges. The pressing questions on travelers’ minds won’t be definitively answered anytime soon. Executives say they haven’t even decided which airline’s name or look will survive the merger, or who will run the combined company. Until the deal is done nothing changes for Spirit and Frontier passengers as the airlines will remain independent, with their own websites, fares, flights, planes, airport gates and policies. Looking ahead, here’s what travelers need to know, and what remains up in the air, as the Florida airline with the neon yellow planes merges with the Colorado carrier that puts animals on the tails of it planes. Frontier and Spirit have made a name for themselves with eye-popping fares aimed at vacationers and travelers visiting friends and relatives who otherwise might not fly or take as many trips. Frontier’s website on Monday was touting one-way fares as low as $25 from Cleveland to Florida, Spirit, $43 from Detroit to Las Vegas. They are no-frills fares, with extras charged for everything from carry-on bags to seat assignments to inflight soft drinks. Frontier and Spirit executives are adamant their cheap tickets will not only remain but will be added to more routes as the airlines grow aggressively. They said they have immediately identified more than 300 new routes just by combining their flight networks. «Together we will democratize travel even further,» Frontier CEO Barry Biffle said on a conference call Monday. The merger of two rivals in any business is often the recipe for fewer choices and higher prices, despite early promises of a win for all. «Clearly, if you have less competition you have less incentive to reduce your fares,» said veteran travel industry analyst and consultant Henry Harteveldt of Atmosphere Research Group. Biffle maintains that the Frontier-Spirit combination is unique because the airlines’ route networks are complementary. Frontier is strong in the Western United States, Spirit on the East Coast.
