Spirit Airlines has rejected a third takeover bid from budget rival Frontier, saying that it would focus on its own plan to emerge from bankruptcy and stabilize its finances.

The bid this week, like the last bid, offers Spirit shareholders $400 million in newly issued debt and a 19% stake in Frontier Group Holdings Inc., the parent company of Frontier.

Spirit has a hearing in court on its reorganization plan Thursday.

Frontier’s first attempt to merge with Spirit was in 2022, but it was outbid by JetBlue. However, the Justice Department sued to block JetBlue’s $3.8 billion proposal, saying that it would drive up prices for Spirit customers who depend on low fares. A federal judge agreed, and JetBlue and Spirit dropped their merger bid. — Associated Press