Spirit Airlines has rejected a $2.1 billion takeover offer from Frontier Airlines, citing the proposal as "inadequate and unactionable". This marks the second time Spirit has rebuffed a takeover bid from Frontier, with the first attempt valuing the deal at $2.9 billion in 2022.

In a filing with the Securities and Exchange Commission, Spirit Airlines CEO Ted Christie and board chair Mac Gardner expressed their dissatisfaction with Frontier's latest offer, stating that it was "woefully insufficient financially" compared to the previous bid. The rejection comes as Spirit Airlines continues to navigate its way out of bankruptcy, with the company opting to stick with its existing restructuring plan.

The takeover bid was first submitted by Frontier on January 7th, with Spirit's advisors responding that the proposal was not worthy of a counteroffer. Despite some back-and-forth between the two companies, Spirit ultimately decided to reject the offer, citing its inadequacy. In a January 28th email, Christie and Gardner stated that while they appreciated Frontier's interest, the terms of the deal were "both inadequate and unactionable".

This development comes on the heels of JetBlue's failed attempt to acquire Spirit Airlines last year, which was blocked by a federal judge. Some speculate that Frontier's revived offer may have been an attempt to capitalize on the current administration's more merger-friendly stance. However, it appears that Spirit Airlines is committed to its existing restructuring plan, which it believes will help the airline emerge from bankruptcy.

The implications of this rejection are significant, as it could have major consequences for the airline industry as a whole. A merger between Spirit and Frontier would have created the fifth-largest airline in the US, potentially altering the competitive landscape of the industry. Instead, Spirit's decision to go it alone may lead to a more fragmented market, with potential long-term effects on consumers and competitors alike.

As the airline industry continues to evolve, this development serves as a reminder of the complex and often contentious nature of mergers and acquisitions. With Spirit Airlines opting to chart its own course, the question remains: what's next for the beleaguered airline, and how will its decision impact the industry at large?