Discount carrier says a merger would be a better path out of bankruptcy for Spirit, which has rebuffed the latest proposal.

Frontier Airlines hoped to create a low-cost airline giant, but Spirit isn’t interested—at least, not at this price. Spirit Airlines has rejected a merger offer with Frontier as it prepares to exit bankruptcy.

Spirit Airlines said on Wednesday it has rejected a bid from rival Frontier Group as it was not favorable for the low-cost carrier and expects to exit bankruptcy in the first quarter. Frontier offered Spirit shareholders $400 million in debt and a 19% stake in Frontier earlier this month,