Spirit Airlines shareholders have approved the airline’s sale to JetBlue in a vote. This comes six months after Spirit Airlines agreed to a cash offer from JetBlue. The road to the acquisition hasn’t been easy for the two airlines, and this approval is a step in the right direction.
The approval will come as a piece of welcomed news to JetBlue as it plans to finalize the acquisition of Spirit Airlines by early 2024. However, JetBlue still has to face the U.S. government before the transaction can be called a wrap.
Shareholder’s vote favors sales
Spirit Airlines has announced that its shareholder’s vote on the 18th of October resulted in an agreement to sell the airline. Over 50% of shareholders agreed to the merger.
This vote has been one of the most significant hurdles in completing the merger, which kicked into the process when Spirit Airlines executives accepted $3.8 billion. However, the process has been slow and challenging for the parties involved and stands as one of the most protracted deals in the aviation industry.
Criticism and scrutiny of the deal have been rife, although the process has continued. The vote is a relief to both parties because if shareholders had voted against the agreement, it would have been a significant setback for JetBlue’s hope of acquiring the airline.
The CEO of Spirit Airlines, Ted Christie, noted that the vote is a step in the right direction.
He said, “This is an important step forward on our part to closing a combination that will create the most compelling national low-fare challengers 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 stakeholders.”
What is ahead?
The vote by shareholders favoring JetBlue is a significant hurdle that has been crossed. However, JetBlue, on its part, must work to gain approval from the U.S. government before the deal can be completed.
Again, JetBlue must convince every regulatory body that the acquisition does not pose a danger to travellers in terms of ticket hikes.
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