Spirit and Frontier are courting again? We’ve been here a few times; this is round four.
The Turbulent History
- It appears we are entering round four of a Spirit-Frontier merger:
1. February 2022: The carriers first agreed to merge, but JetBlue outbid Frontier with a higher offer. This may have been a FOMO move by JetBlue after losing Virgin America to Alaska.
2. 2023: The Biden administration blocks the JetBlue-Spirit deal on antitrust grounds, leaving Spirit without a lifeline.
3. January 2025: Following Spirit’s first bankruptcy filing, Frontier offered creditors $580 million in debt and a 26.5% equity stake, but Spirit rejected it as “inadequate and unactionable.”
4. December 2025: “Talks” have resumed as Spirit navigates its second bankruptcy.
Spirit’s Dire Financial Situation
Spirit filed for Chapter 11 bankruptcy on August 29, 2025—its second filing within a year, earning it the unofficial “Chapter 22” label in financial circles.
Key metrics paint a grim picture:
- Quarterly losses: $246 million net loss in Q2 2025
- Cash burn: $67-83 million per month (some reports say $3 million daily)
- Stock price: Closed at 20 cents on Tuesday
- Job cuts: 150 corporate positions cut in November; 1,800 flight attendants and 270 pilots furloughed earlier in 2025
- Workforce: Employed roughly 12,800 people at the first bankruptcy filing
Frontier’s Challenges
Frontier isn’t in great shape either. The airline reported a $190 million loss over the first nine months of 2025, while its share price has fallen more than 28% since the start of the year. CEO Barry Biffle, who advocated for acquiring Spirit but reportedly grew skeptical about absorbing its financial problems, suddenly stepped down earlier this month. President James Dempsey now serves as interim CEO.
Why This Merger Might Happen Now
Industry observers suggest consolidation may be the only path to survival for both carriers. JetBlue founder and Breeze CEO David Neeleman recently said Spirit and Frontier “need each other” and may ultimately require a merger to remain competitive.
Both airlines face crushing competition from the majors, which now offer their own basic economy fares while maintaining stronger loyalty programs and network advantages. The ULCC model of charging rock-bottom base fares, with fees for everything else, has become increasingly difficult to sustain.
For the flight ops geeks, note that Spirit is Pratt & Whitney powered, using both V2500 and GTFs. Frontier, under IndiGo Partners’ ownership, has been deploying GTF power on its new deliveries. A tiny thread perhaps, but for an industry constantly seeking lower costs, this is a biggie.
Let’s talk about MRO, another key area for cost cuts. Frontier Airlines uses multiple MRO providers for different aspects of maintenance:
- Base Maintenance (Airframe): Lufthansa Technik Puerto Rico handles base maintenance for Frontier’s Airbus fleet under a five-year contract, with approximately 300 maintenance events scheduled at their facility in Aguadilla, Puerto Rico. The facility operates five maintenance lines, staffed by over 400 specialists in the A320 family of aircraft.
- Engine MRO: Lockheed Martin Commercial Engine Solutions in Montreal holds an eight-year, exclusive contract to perform maintenance, repair, and overhaul of CFM56-5 engines on Frontier’s Airbus A319s and A320CEOs.
- Additional Heavy Maintenance: Frontier has used PEMCO World Air Services (an Air Transport Services Group subsidiary) based in Tampa, Florida, for heavy checks, induction checks, and various maintenance support.
- In-House Capabilities: Frontier maintains its own Technical Operations division in Denver, which handles day-to-day maintenance, engineering, and technical training for its large Airbus fleet.
- Digital and Support Services: Frontier recently became the first US airline to employ products from Lufthansa Technik’s entire Digital Tech Ops Ecosystem, including AVIATAR for predictive health analytics and condition monitoring, AMOS maintenance software, and flydocs for digital records management. Frontier also uses Airinmar (an AAR subsidiary) for warranty management and value engineering services to maximize warranty recoveries and reduce component repair costs.
A multi-vendor approach allows Frontier to leverage specialized expertise while managing costs—critical for an ULCC operating on thin margins.
By comparison, Spirit Airlines’ MRO:
- Wheels and Brakes: Safran Landing Systems has extended its agreement with Spirit Airlines to supply and maintain, and repair and overhaul, wheels and carbon brakes for the airline’s Airbus fleet. This 20-year partnership was renewed in April 2025. Manufacturing takes place at Safran’s facility in Walton, Kentucky, with maintenance services provided through Safran’s network in Florida, Pennsylvania, Wisconsin, Texas, and Nevada.
- In-House Maintenance: Spirit operates its own maintenance facilities primarily at two locations. Detroit Metropolitan Wayne County Airport – Spirit has a 126,840-square-foot hangar, office, and shop space that can hold up to three A-321 aircraft at a time, with maintenance and support buildings on three sides. Houston George Bush Intercontinental Airport – Spirit opened an aircraft maintenance facility staffed by more than 50 full-time employees.
- Engine MRO Issues: Spirit has been dealing with significant Pratt & Whitney GTF issues. In its most recent results for the quarter to June 30, 2025, Spirit said that Pratt had issued it $72 million of credits relating to aircraft on ground due to GTF issues. The airline has been parking numerous aircraft due to these engine maintenance problems.
Unlike Frontier, which outsources most heavy maintenance to providers such as Lufthansa Technik Puerto Rico, Spirit appears to handle more maintenance in-house at its Detroit and Houston facilities, supplemented by component-specific contracts with vendors such as Safran for wheels and brakes.
A combined airline will be able to renegotiate some of these deals. The deep pocket for this is Pratt & Whitney. P&W has a long relationship with Bill Franke that it will want to honor. His Indigo Partners owns several airlines, giving the firm significant leverage. The other big names mentioned doing the MRO work will probably fight to win more from a combined fleet.
The Uncertainty
Despite renewed talks, discussions are ongoing and could end without a deal. Spirit has already rejected multiple Frontier offers this year alone, and significant hurdles remain around valuation, regulatory approval, and execution during bankruptcy proceedings. If completed, a combined Spirit-Frontier would become the fifth-largest U.S. airline by fleet size.
How disruptive will such a merger be? People are likely to be the biggest challenge. Crew seniority is a big one. Then bringing Spirit’s costs down to Frontier’s level likely requires workforce reductions, route cuts, and operational standardization—all potentially disruptive to service. If the deal is consummated and the DOT approves (not a certainty), it will be a very messy process. This messy period is an opportunity for the likes of Avelo and Breeze to capitalize on, as they’re more nimble.
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