On February 7 local time, Frontier Airlines and spirit airlines, the two largest low-cost airlines in the United States, have agreed to merge and will become the fifth largest airline in the United States.
According to CNBC, according to the merger agreement, the transaction is worth $6.6 billion. Frontier Airlines will own 51.5% of the merged company, while spirit airlines will own the remaining 48.5%. At present, the name of the merged airline, the candidate for CEO and the location of the airline headquarters are uncertain.
It is reported that after the news, in the pre-market trading on the 7th, the share price of spirit Airlines rose by about 11%, and the share price of Frontier Airlines fell by about 3%.