The Spirit saga continues: JetBlue moves to buy the budget airline at a "downturn discount"

Like "Succession" in the sky… Spoiler alert: the latest episode of the Spirit Airlines merger drama just dropped, and things are getting hostile. Yesterday JetBlue said it would try a hostile takeover of Spirit after its previous offer was rejected. Refresher:

• Earlier this season: Spirit accepted a $2.9B buyout offer from Frontier in February. Then JB made a $3.6B bid in April, but Spirit’s board didn’t budge.
• Plot twist: Now JB’s appealing directly to shareholders, asking them to ditch Frontier for a $3.3B deal (that’s lower than its first offer, but more than Frontier’s — and almost twice Spirit’s Friday price). JB said it would pony up more if Spirit’s board negotiates.

Only the big survive… American, Delta, Southwest, and United take up lots of airspace: together they control 80% of US domestic flights. Meanwhile, an ongoing pilot shortage and rising fuel costs are making it hard for smaller airlines to compete. But buying Spirit could give JetBlue (or Frontier) more leverage:

• The Big 5: If either airline succeeds in taking over Spirit, they’ll become the fifth-largest US carrier with about 10% market share.
• More control: Spirit’s buyer won’t just get market share: they’ll get more pilots, more pricing power (which helps offset rising fuel costs), and more routes (which are often reserved at major hubs).