The deal, which values Spirit at $3.8 billion, would create the nation’s fifth-largest airline, with a combined market share of more than 10 percent, behind United Airlines, which has a nearly 14 percent share . The deal is a victory for JetBlue, which successfully thwarted a rival bid to buy Spirit from Frontier Airlines. Frontier and Spirit had announced plans to merge in February, but called off the deal Wednesday after trying to convince Spirit shareholders to back its bid, which falls short of JetBlue by about $1 billion. “Spirit and JetBlue will continue to advance our shared goal of disrupting the industry to drive down fares from the big four airlines,” Robin Hayes, JetBlue’s chief executive, said in a statement. Spirit and JetBlue said they expect to seek approval of the deal from Spirit shareholders this fall and from regulators by late 2023 or early 2024. The airlines said they expect to close the transaction no later than by the first half of 2024, with plans to start operating as a single carrier by the first half of 2025. But while the airlines have agreed to combine, closing the deal is far from certain. The Biden administration has taken a tough stance on antitrust, questioning corporate mergers that might reduce competition. Regulators have already sued JetBlue and American Airlines for colluding at airports in Boston and New York. Under the merger agreement, JetBlue would acquire Spirit for at least $33.50 per share in cash, significantly more than Spirit’s closing price of $24.30 on Wednesday. Shares of Spirit rose 4 percent in early trading but remained below the price offered by JetBlue, reflecting skepticism about the deal.
