JetBlue buys Spirit for $3.8 billion to become fifth-biggest US airline

JetBlue wins bidding war for ultra-low-cost carrier after recently launching flights to London Heathrow

A JetBlue checkin desk at Ronald Reagan Washington National Airport in Arlington, Virginia (EPA)

American carrier JetBlue is to buy ultra-low-cost Spirit Airlines for $3.8 billion (£3.14bn) in a deal that would create the fifth-largest airline in the US – if it is cleared by regulators.

The agreement comes a day after Spirit's attempt to merge with budget rival Frontier Airlines fell apart.

The proposed new combined airline would be based in New York and have a combined fleet of 458 aircraft.