Spirit Airlines has announced that its stockholders have approved the merger agreement with Jetblue.
Jetblue announced its plans to purchase Florida-based carrier Spirit for US$3.8 billion in July, aiming to create America’s fifth-largest airline.
Spirit stated in a release:
“Based on the preliminary voting results provided by the independent inspector of election at the special meeting of stockholders held today, more than 50% of the outstanding shares of Spirit common stock voted in favour of the transaction.”
The completion of the transaction, which is subject to regulatory approval, is expected “no later than the first half of 2024”.
Jetblue aims to create a “national low-fare challenger” to the US airline industry’s dominant ‘Big Four’: American, United, Delta and Southwest Airlines.
Spirit had previously terminated a US$2.9 billion deal to merge with fellow US low-cost carrier Frontier.
Ted Christie, President and CEO of Spirit Airlines, commented on the vote:
“This is an important step forward on our path to closing a combination that will create the most compelling national low-fare challenger to the dominant U.S. carriers. We look forward to continuing our ongoing discussions with regulators as we work toward completing the transaction and delivering value to Team Members, Guests and stockholders.”
Find our more about the plans in our report from July and a subsequent interview with Jetblue’s CEO Robin Hayes: