Bankrupt Spirit Aviation Holdings Inc. is in revived discussions to merge with Frontier Group Holdings, people familiar with the matter said, in a deal that could rescue the deep-discount airline from insolvency at a time of stiff competition from larger US carriers. A transaction could be announced as soon as this month, said the people, who asked not to be identified because the matter is confidential. The discussions are ongoing and could end without a deal taking place, they said. A representative for Spirit said it doesn’t comment on rumors and speculation. Frontier declined to comment. A merger between the airlines would mark a significant step for Spirit, which filed its second bankruptcy in less than a year in August. Bloomberg Intelligence Senior Aerospace, Defense & Airlines Analyst George Ferguson joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)