The shares of Spirit Airlines (NYSE) dropped over 8 percent Monday morning following a JetBlue Airways proposal. (NASDAQ) The Board of Directors stated that the JetBlue Airways proposal does not make it a superior proposition to its earlier announced contract with Frontier Group Holdings Frontier Airlines’ parent company is (NASDAQ:).

JetBlue’s most recent “enhanced higher proposal” to purchase Spirit cost $33 per share. That’s a large premium to Spirit’s current price. JetBlue also included cash and an enhanced proposal that contained a divestiture agreement, a package of remedies to address regulatory issues, as well as a reverse breakup fee in excess of $200 million.

Robin Hayes (chief executive officer at JetBlue) stated that the transaction will create a competitor for the Big Four airline companies and provide meaningful benefits to customers. It would also bring superior value to shareholders for both airlines as well as new opportunities for combined crewmembers. “We are certain that this transaction can be closed to provide more cheap fares and excellent service for more customers. JetBlue and Spirit shareholders will benefit from enhanced financial strength, increased revenue growth, and greater profitability.

Spirit’s Board has determined, however that this proposed transaction “is not reasonably capable of being consummated,” so the Board considers that Frontier’s transaction with Spirit is the best way to maximize value.

Spirit Airlines Chairman Mac Gardner stated that Spirit Airlines believes in Frontier’s strategic reasoning and feels it offers the greatest opportunity to increase long-term shareholder value. The Board determined after a careful review, extensive discussion with JetBlue that JetBlue’s proposed merger would present an unacceptable level in closing risk. Spirit stockholders would have to assume this risk. Our upcoming merger with Frontier is an exciting chapter in Spirit’s history and will bring many benefits for Spirit stockholders, team members and guests.

Louis Juricic