(CBS News) — Frontier is buying Spirit Airlines in a $2.9 billion cash-and-stock deal that will create the nation’s fifth-largest carrier.

The companies said Monday that the transaction will provide more low-cost fares for more travelers to destinations in the U.S., Latin America, and the Caribbean. Frontier Group Holdings and Spirit Airlines also anticipate $1 billion in annual consumer savings and are looking to expand their services with more than 350 aircraft on order.

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In addition, Frontier and Spirit are looking to add more jobs. The companies foresee adding 10,000 direct jobs and thousands of additional jobs at their business partners by 2026.

The tie-up is valued at $6.6 billion when accounting for the assumption of debt and other liabilities.

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“This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” Spirit CEO Ted Christie said in a statement.

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