The Wall Street Journal: Frontier Airlines to pay Spirit $250 million breakup fee if deal falls through

United States

Frontier Airlines will pay Spirit Airlines Inc. a $ 250 million breakup fee if regulators block a merger between the two carriers, under a new agreement by the companies Thursday.

The move comes as Spirit SAVE, +3.99% tries to win investor support for its merger with Frontier  ULCC, +0.59% and fend off a hostile bid from rival JetBlue Airways Corp. JBLU, +2.83%.