WHEN: Today, Thursday, May 19, 2022
WHERE: CNBC’s “Squawk Box”
Following are excerpts from the unofficial transcript of a CNBC exclusive interview with Spirit Airlines CEO Ted Christie on CNBC’s “Squawk Box” (M-F 6AM – 9AM ET) today, Thursday, May 19th. Following is a link to video on CNBC.com:
All references must be sourced to CNBC.
CHRISTIE ON BOARD DECISION ABOUT JETBLUE OFFER
TED CHRISTIE: We believe there to be a significant regulatory hurdle here. We hired some of the best experts in the field, regulatory lawyers and economists who advised the board on this issue, worked with JetBlue over the better part of a month and a half and they reached the conclusion that it’s not likely to be approved. But, to be honest, you really don’t have to be an expert here. You know, what we’ve got is JetBlue in the middle of a quasi-merger with American Airlines, one of the big three that they report to compete with, and then attempting to buy a competitor and take seats out of the market and raise fares and that’s going to be a big issue and one that our board viewed as insurmountable.
CHRISTIE ON JETBLUE CREATING “DISTRACTION” IN THE MARKET
CHRISTIE: They’re looking to create a lot of dust and distraction in the market and attempt to confuse our shareholders, and while they put a number out there that may be interesting for people to look at, this is not a lottery. We don’t treat our shareholders’ money like it’s a lottery. And so we’re advising them to approve the Frontier merger so we can create this ULCC that will deliver tremendous value to the market.
CHRISTIE ON FRONTIER TRANSACTION
CHRISTIE: Well, we think the odds are really good which is why we preceded with this. You know, we’ve evaluated a number of opportunities over the years and in this market with this administration, what we’re trying to do is enhance competition. That’s exactly what the Frontier transaction does. We think that narrative plays well with the DOJ and what it is and the government and what they’re trying to enhance from a competitive standpoint and so we think our chances are really good.
CHRISTIE ON JETBLUE DEAL
CHRISTIE: We have an independent board here that has done considerable work, hired a number of experts in the field, reviewed all that information and made the decision. On the surface, we’d love to have, you know, a competitive offer come in and maybe, you know, that would drive value but the simple truth is this deal is illusory. It will not happen in our opinion and for that reason our board has rejected it and to imply otherwise again, we just think is insulting.
