Looking at the market today, and lots of talk about additional airline mergers, it seems that Frontier and Spirit joining forces would make sense.
With the recent completion of the American Airlines and US Airways merger, there are officially four major U.S. airlines that control over three-quarters of the domestic air travel market. The four airlines are: Southwest, United, American, and Delta. All of them have been through mergers in the last decade. The remaining twenty-five percent of the market is divided up amongst carriers such as JetBlue, Alaska Airlines, Spirit Airlines and Frontier Airlines, amongst a few others. There is a very small likelihood that another merger would occur amongst the major four airlines due to antitrust regulations. Therefore, any airline consolidation would most likely happenÂ among the smaller carriers that control the remaining twenty-five percent of the market, in an effort to better compete with the four mega-carriers.
One potential merger that appears to be the most promising is a deal between Fort Lauderdale, Florida-based Spirit and Denver, Colorado-based Frontier. Spirit operates around 250 daily domestic departures, while Frontier operates at somewhere around 230 departures daily. The merger would combine two companies positioning themselves fighting to be the top ultra discount airline in the United States.