Serial airline founder David Neeleman said this week that Spirit and Frontier “need each other,” indicating the two ultra–low-cost carriers may ultimately require a merger to remain competitive.
Speaking at Skift’s Aviation Forum in Fort Worth, Texas, on Wednesday, Neeleman said the ultra-low-cost carrier model may not support both carriers independently.
“I think Spirit [and] Frontier need each other,” he said, adding that the two would benefit from shared efficiencies. “ [Frontier CEO] Barry Biffle may not say that, but I think they do …There’s room for a ULCC in the U.S., but probably not two.”
“ And so if they get together [with] cost and revenue synergies … I think they’ll probably be okay,” he continued.
Neeleman cited Spirit’s restructuring efforts, noting the airline has reduced pilot pay, removed aircraft from its fleet, and secured additional liquidity. “They’ve been able to cut their pilot salaries. They’ve been able to get rid of a bunch of airplanes. They got some cash from AerCap and… I assume Pratt as well,” he said.
The two airlines previously attempted to combine in 2022 before the deal was withdrawn, and then again earlier this year.
Neeleman is the founder and CEO of Breeze. Before starting the airline in 2021, he launched several other airlines, including JetBlue, Morris Air, and Azul.
