JetBlue Airways has reached a deal to buy ultra-low-cost carrier Spirit Airlines, bringing an end to a months-long bidding war with Frontier, and creating a “national low-fare challenger to the dominant big four airlines.”
JetBlue announced the deal on Thursday morning, writing that it will acquire Spirit for $33.50 per share in cash, including a prepayment of $2.50 per share in cash payable upon Spirit shareholders’ approval of the deal. When the deal is finalized, the combined carrier will be the fifth-largest airline in the U.S.
JetBlue’s announcement came just a few hours after talks between Spirit and Frontier ended. Spirit reportedly could not secure shareholder approval for its deal to buy Frontier despite the efforts from its executive board, including delaying the vote four different times.
If Spirit comes up to JB’s standards, that’ll make me a happy traveler. If Spirit drags JB down to theirs, I’ll be looking for a new carrier for those Boston work trips.
…faced sweeping losses and immense debt, among other major issues, over the years. Nonetheless, the low-cost airline announced that it will continue to operate.
The CEO of Spirit Airlines, Ted Christie, a man who presided over the insolvency of the firm, was paid a $3.8 million retention bonus the week before the bankruptcy filing. The reason such a fact matters isn’t just because it’s outrageous, it’s because it’s one more bad decision by a bad management team that is blaming the government for their own choices.
That is SOP. The CEO of K-Mart got a huge bonus, as the company went Bankrupt. The honchos at Radio Shack pocketed a huge payout, as the company went bankrupt. It is all about the care and feeding of the CEO. What happens to the company doesn’t matter. fwiw, Spirit has been known for terrible customer service. The bankruptcy courts usually approved these payouts, because they also know the care and feeding of the honchos is the only thing that matters.
Eight top employees will receive bonuses totaling $1.5 million — $500,000 less than initially proposed — to be paid in three stages after the “successful conclusion” of a sale of about half the chain’s stores.
It has emerged that bankrupt retailer Kmart is to pay its new CEO Julian Day an annual salary of $1 million and a $1 million bonus. And its former CEO James Adamson is to get a $3 million severance and an additional $600,000. Both payments will be made when Kmart emerges from bankruptcy later this year.