Frontier is offering to buy Spirit Airlines in a deal that will create the nation’s fifth largest carrier. The companies said the transaction will provide more low-cost fares for more travelers.
Christopher Anderson, professor of operations, technology, and information management at Cornell University, is an expert in the hospitality and airline industries. He says customers would benefit from the mega merger.
“The Frontier and Spirit deal is a positive for both consumers and shareholders. In the airline industry, scale matters and this acquisition will most likely result in significant cost savings for the combined airline – this savings will be amplified by the similarities of the fleet and configuration.
“Consumers will benefit from more breadth of the combined itineraries and most likely lower fares through the cost savings and system synergies. Frontier has always been a pioneer in the low-cost space as they were the first carrier to do a good job of aligning price and value with amenities, for example charging more for carry-on bags than checked bags along with the adopting of buy-now pay later opportunities to ensure consumers can afford leisure trips.”