Spirit Airlines rejected Frontier Airlines' second attempt to merge the two companies on Wednesday and will continue with its plans to exit bankruptcy. Frontier made an offer in early January for Spirit stakeholders to acquire $400 million in new debt and obtain 19% of Frontier's stock.

Frontier Airlines is making another offer to merge with bankrupt Spirit Airlines, less than two years after a previous plan fell through.

Spirit, which filed for bankruptcy protection last year, says it has rejected the new Frontier overture but would be open to a higher offer.

Spirit Airlines rejected a $400 million merger proposal from Frontier this week, saying the offer was financially inadequate and came too late. Spirit Airlines declined an opportunity to merge with rival low-cost airline Frontier on Wednesday.

Frontier and Spirit Airlines will once again try to merge, only months after the Biden administration won a key antitrust court battle to block

Frontier Airlines is attempting for a second time to merge with the now bankrupt Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle.

Budget carrier Frontier Airlines announced on Wednesday that it has made another bid for fellow discount carrier Spirit Airlines, which is in bankruptcy, for an undisclosed sum.

The Denver-based low-cost carrier said its combination with the Dania Beach, Florida-based Spirit would create a stronger low-cost carrier and benefit “from the very significant synergies Frontier expects to achieve by combining the airlines’ operations.”

Frontier Airlines and Spirit Airlines have discussed a merger yet again, but Spirit rejected the bid in order to exit bankruptcy on its own.Frontier confirmed the latest merger discussion in a news release on Wednesday,