Frontier-Spirit Air Deal Expands Franke’s Sphere in Discounting
- Proposed combination would create fifth-largest U.S. airline
- Ultra-low-cost carriers tap leisure travel in Covid-19 rebound
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Frontier Group Holdings Inc.’s planned $2.9 billion purchase of Spirit Airlines Inc., positions Bill Franke, the self-proclaimed father of ultradiscounting, to expand his global network of carriers that offer bargain-basement fares while maintaining a laser focus on low costs.
The deal comes as the industry’s recovery from the Covid-19 pandemic leans on domestic markets and leisure travelers -- the bread-and-butter of ultra-low-cost airlines. Big carriers are moving more heavily onto that turf as business and overseas travel remain tepid.