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Midwestindy
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Posts: 6976
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JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:41 pm

This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html
 
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Midwestindy
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:43 pm

$SAVE is currently halted on the NYSE after rising 20%
 
Western727
Posts: 2321
Joined: Wed Jan 03, 2007 12:38 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:44 pm

Midwestindy wrote:
This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html


Ugh. Rhetorical question: why would the Target buy the Dollar General of the aviation industry? Sigh.
 
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Midwestindy
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Posts: 6976
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:46 pm

Western727 wrote:
Midwestindy wrote:
This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html


Ugh. Rhetorical question: why would the Target buy the Dollar General of the aviation industry? Sigh.


Wall Street doesn't like it either, JBLU stock is down 6%
 
SWADawg
Posts: 764
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:48 pm

Western727 wrote:
Midwestindy wrote:
This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html


Ugh. Rhetorical question: why would the Target buy the Dollar General of the aviation industry? Sigh.

Smells like desperation to me.
 
Nicknuzzii
Posts: 2071
Joined: Sat Sep 15, 2018 5:57 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:50 pm

Certainly interesting in my opinion. I think this would be great for JetBlue… if they kept operating as 2 separate brands.
 
Brianpr3
Posts: 117
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:50 pm

wow!
this is crazy
 
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LotsaRunway
Posts: 508
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:52 pm

It would give B6 more A320s and eliminate a pest to them. I don't see any survival for the NK network.
Is the elimination through buyout viewed favorably in the government review?
 
GSP psgr
Posts: 827
Joined: Thu Mar 30, 2000 7:09 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:52 pm

Western727 wrote:
Midwestindy wrote:
This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html


Ugh. Rhetorical question: why would the Target buy the Dollar General of the aviation industry? Sigh.


As far as the advantages, it would make them the 800 lb gorilla at FLL, a more serious player at MCO, and a lesser extent the LAX adds maybe give them more critical mass there. Beyond that....this doesn't make a ton of sense to me.
 
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LAXintl
Posts: 26234
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:53 pm

April 1st was 4 days ago.

Anyhow, dont see it good for either airline. JetBlue has longer term business problems they need to address, but merging with Spirit is not the answer.

One interesting note - former Spirit CEO Ben Baldanza is on the JetBlue board these days.
Last edited by LAXintl on Tue Apr 05, 2022 7:55 pm, edited 1 time in total.
 
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1337Delta764
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:54 pm

If this is good for service and onboard product, I'm all in.
 
Wneast
Posts: 1559
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:55 pm

I’m calling it now WN joins the bidding process.
 
MIflyer12
Posts: 11169
Joined: Mon Feb 18, 2013 11:58 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:56 pm

Oh, the (lawsuit) games we'll play! Potential:

Against Spirit's BOD if they don't pursue the higher offer.

Against JBLU for trying to screw up the F9/NK deal.

Against somebody if they don't pay the prescribed deal termination fee...

Separately, no way would they keep two brands. That foregoes the synergies in advertising, a combined fleet, and combined work groups. Spirit operated by JetBlue wouldn't fix that.
 
rj777
Posts: 1935
Joined: Sat Dec 02, 2000 1:47 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:58 pm

They could name the combined carrier JetGreen (Blue+Yellow)
 
catiii
Posts: 3987
Joined: Mon Mar 31, 2008 1:18 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:59 pm

MIflyer12 wrote:
Oh, the (lawsuit) games we'll play! Potential:

Against Spirit's BOD if they don't pursue the higher offer.

Against JBLU for trying to screw up the F9/NK deal.

Against somebody if they don't pay the prescribed deal termination fee...

Separately, no way would they keep two brands. That foregoes the synergies in advertising, a combined fleet, and combined work groups. Spirit operated by JetBlue wouldn't fix that.


How can anyone sue JetBlue for coming in with a higher bid?
 
Nicknuzzii
Posts: 2071
Joined: Sat Sep 15, 2018 5:57 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 7:59 pm

JetBlue would become a lot more competitive then they already are in FLL/LAX/EWR/MCO.
 
Brickell305
Posts: 1670
Joined: Sat Jun 24, 2017 2:07 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:00 pm

GSP psgr wrote:
Western727 wrote:
Midwestindy wrote:
This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html


Ugh. Rhetorical question: why would the Target buy the Dollar General of the aviation industry? Sigh.


As far as the advantages, it would make them the 800 lb gorilla at FLL, a more serious player at MCO, and a lesser extent the LAX adds maybe give them more critical mass there. Beyond that....this doesn't make a ton of sense to me.

I don’t think both airlines combined would have over 50% market share at FLL. And with the likely capacity reductions on overlapping routes, that would likely slip further. It would be the biggest but it would be far from an 800 lb gorilla. FLL would remain a highly competitive airport and So. Florida would remain a highly competitive market especially taking into account the actual 800 lb gorilla at MIA.
 
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Midwestindy
Topic Author
Posts: 6976
Joined: Sun Mar 12, 2017 3:56 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:00 pm

Midwestindy wrote:
Western727 wrote:
Midwestindy wrote:
This potentially throws the Frontier deal out the window

$33/Share in cash
https://twitter.com/DeItaone/status/151 ... 3d-zodBEHw

https://www.nytimes.com/2022/04/05/busi ... ntier.html


Ugh. Rhetorical question: why would the Target buy the Dollar General of the aviation industry? Sigh.


Wall Street doesn't like it either, JBLU stock is down 6%


At market close:

Spirit +22.42%
Frontier +3.92%



Jetblue -7.08%
Last edited by Midwestindy on Tue Apr 05, 2022 8:01 pm, edited 1 time in total.
 
Jshank83
Posts: 5274
Joined: Tue Nov 01, 2016 2:23 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:01 pm

You would think Breeze/Avelo/Allegiant are praying this happens. Could open a huge hole in the ULCC market if Jetblue pulls them into their current brand.
Probably wouldn't be horrible for Frontier either.
 
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LAXintl
Posts: 26234
Joined: Wed May 24, 2000 12:12 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:07 pm

Also the AA NEA deal would certainly have to go bye-bye to appease DOJ at the very least.
 
Boof02671
Posts: 3128
Joined: Sun Jul 10, 2016 12:15 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:15 pm

Would never pass the DOJ it would give the combined airline 48% market share at FLL and a 26% market share at MCO.
 
catiii
Posts: 3987
Joined: Mon Mar 31, 2008 1:18 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:16 pm

Makes sense to me. One of the last moves out there. Efficiencies with fleet. They can take NK’s airplanes and redeploy them. They don’t have to fly NK’s full network. A way to grow massively at a lower cost than organically.
 
MIflyer12
Posts: 11169
Joined: Mon Feb 18, 2013 11:58 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:18 pm

catiii wrote:
MIflyer12 wrote:
Oh, the (lawsuit) games we'll play! Potential:

Against Spirit's BOD if they don't pursue the higher offer.

Against JBLU for trying to screw up the F9/NK deal.

Against somebody if they don't pay the prescribed deal termination fee...

Separately, no way would they keep two brands. That foregoes the synergies in advertising, a combined fleet, and combined work groups. Spirit operated by JetBlue wouldn't fix that.


How can anyone sue JetBlue for coming in with a higher bid?


Here's a little Getty/Texaco/Pennzoil law & business history for you. $10.5 Billion in damages - in 1985 $.

https://www.latimes.com/archives/la-xpm ... story.html
 
UALFAson
Posts: 1234
Joined: Sun Mar 14, 2004 2:41 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:19 pm

Where does this leave AS? They're they ones who really need a dance partner. At least B6 has (had?) AA.
 
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mercure1
Posts: 5580
Joined: Sun Jul 13, 2008 5:13 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:20 pm

LAXintl wrote:
Also the AA NEA deal would certainly have to go bye-bye to appease DOJ at the very least.


Maybe JBU knows that this deal is already dead per DOJ?
 
wjcandee
Posts: 11502
Joined: Mon Jun 05, 2000 12:50 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:21 pm

Smacks of a real Red Team/Green Team issue in the future. Or maybe this is just WN swallowing AirTran, but with compatible aircraft types. Goal: Eliminate a competitor, pure and simple.
 
Brickell305
Posts: 1670
Joined: Sat Jun 24, 2017 2:07 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:22 pm

Boof02671 wrote:
Would never pass the DOJ it would give the combined airline 48% market share at FLL and a 26% market share at MCO.

Neither of those is particularly high. I agree that the DOJ might take issue with this but not because of market share in FLL or MCO, neither of which would be dominated by the combined carrier nor are slot controlled. I think it would most likely take issue with the elimination of a ULCC if they choose to convert NK to the B6 model going forward and not the other way around.
 
jbs2886
Posts: 4096
Joined: Wed Apr 01, 2015 9:07 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:24 pm

Boof02671 wrote:
Would never pass the DOJ it would give the combined airline 48% market share at FLL and a 26% market share at MCO.


That wouldn't stop it from passing. Feds can just order concessions. Plus that isn't enormous for large markets.
 
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DarkSnowyNight
Posts: 3098
Joined: Sun Jan 01, 2012 7:59 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:26 pm

wjcandee wrote:
Smacks of a real Red Team/Green Team issue in the future. Or maybe this is just WN swallowing AirTran, but with compatible aircraft types. Goal: Eliminate a competitor, pure and simple.



NK & B6 are too close in size for that to be a realistic possibility.


catiii wrote:
Makes sense to me. One of the last moves out there. Efficiencies with fleet. They can take NK’s airplanes and redeploy them. They don’t have to fly NK’s full network. A way to grow massively at a lower cost than organically.


Maybe. But I am not convinced organic growth is necessarily more expensive than this.
 
Abeam79
Posts: 583
Joined: Thu Jul 03, 2014 3:16 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:31 pm

Still cheaper than what they were willing to buy VX 7 years ago, and cheaper than what AS bought VX. VX was about half the size of NK
 
DeltaRules
Posts: 5547
Joined: Sat Sep 01, 2001 11:57 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:32 pm

LotsaRunway wrote:
It would give B6 more A320s and eliminate a pest to them. I don't see any survival for the NK network.
Is the elimination through buyout viewed favorably in the government review?


But, hey, CMH, IND, STL, et al will finally get B6 assuming this a "nuke the acquired airline/brand" transaction!
 
Brickell305
Posts: 1670
Joined: Sat Jun 24, 2017 2:07 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:33 pm

jbs2886 wrote:
Boof02671 wrote:
Would never pass the DOJ it would give the combined airline 48% market share at FLL and a 26% market share at MCO.


That wouldn't stop it from passing. Feds can just order concessions. Plus that isn't enormous for large markets.


What would the airlines even be conceding though? Neither FLL nor MCO are slot-restricted and aren't gates common use at both airports?
 
Jgsushi
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Joined: Fri Jul 15, 2016 4:18 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:36 pm

I don’t understand how two companies that are so inherently different could ever hope to be run by a common entity. This would be a huge mistake for JetBlue, and I think it shows an identity crisis at the blue airline.
 
positiverate
Posts: 1587
Joined: Thu May 05, 2005 10:35 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:41 pm

Jgsushi wrote:
I don’t understand how two companies that are so inherently different could ever hope to be run by a common entity. This would be a huge mistake for JetBlue, and I think it shows an identity crisis at the blue airline.


Every airline is inherently different before a merger. That’s why they’re a different company.
 
allegiantflyer
Posts: 380
Joined: Mon Mar 12, 2012 6:59 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:41 pm

Wneast wrote:
I’m calling it now WN joins the bidding process.


NK going with B6 could still indirectly benefit WN. There’s the possibility B6 abandons a lot of the P2P flying that NK does and deploys the fleet to focus on their key markets, allowing WN to pick up where NK leaves.
 
737Jason
Posts: 45
Joined: Sat Jan 02, 2021 8:13 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:42 pm

What would happen to NK's smaller stations, such as MHT, LBE, etc.... MHT has been trying to get B6 for years, and wouldnt B6 just pull out after the aquisition?
 
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Continental767
Posts: 193
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:43 pm

And I was shocked when Frontier announced their intent to merge with Spirit. This came out of nowhere. JetBlue and Spirit are almost polar opposites when it comes to passenger experience.

Will be interesting to see what this means for the NEA if this ends up actually happening.
 
TangoandCash
Posts: 140
Joined: Wed Apr 05, 2017 5:52 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:43 pm

Jgsushi wrote:
I don’t understand how two companies that are so inherently different could ever hope to be run by a common entity. This would be a huge mistake for JetBlue, and I think it shows an identity crisis at the blue airline.


Thank you for putting into words what I've been feeling as my brain tries to digest this... There's a lot of potential airline combinations that make sense. JetBlue and Spirit is not one of them!
 
PSU.DTW.SCE
Posts: 9392
Joined: Mon Jan 28, 2002 11:45 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:44 pm

This sounds like a hail-mary move.

These two airlines combined would be an operational nightmare in terms of reliability / on-time / meltdowns.
 
TWFlyGuy
Posts: 536
Joined: Mon Apr 17, 2017 5:10 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:45 pm

Probably kills the NEA as already mentioned but will the government also have some questions as to why they needed massive government support and suddenly have $3B to throw around??? I think that will be part of the problem.
 
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gatibosgru
Posts: 1849
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Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:48 pm

Love Spirit's shady response lol

"Spirit Airlines Confirms Receipt of Unsolicited Proposal from JetBlue Airways"
 
wjcandee
Posts: 11502
Joined: Mon Jun 05, 2000 12:50 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:48 pm

DarkSnowyNight wrote:
NK & B6 are too close in size for that to be a realistic possibility.
.


So were the Pennsylvania Railroad and the New York Central System, which is where the turn -- reflecting a clash of cultures -- comes from.

Ironically, the original Frontier taught the same lesson to Donald Burr of PeoplExpress, who destroyed his company by trying to save the moribund original Frontier. He thought they'd appreciate the jobs and be flexible. They didn't and they weren't and the whole ship went down.
Last edited by wjcandee on Tue Apr 05, 2022 8:50 pm, edited 1 time in total.
 
2eng2efficient
Posts: 216
Joined: Wed Jul 08, 2020 5:30 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:49 pm

Barbarians at the gate… let’s see what happens.
 
positiverate
Posts: 1587
Joined: Thu May 05, 2005 10:35 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:49 pm

MIflyer12 wrote:
catiii wrote:
MIflyer12 wrote:
Oh, the (lawsuit) games we'll play! Potential:

Against Spirit's BOD if they don't pursue the higher offer.

Against JBLU for trying to screw up the F9/NK deal.

Against somebody if they don't pay the prescribed deal termination fee...

Separately, no way would they keep two brands. That foregoes the synergies in advertising, a combined fleet, and combined work groups. Spirit operated by JetBlue wouldn't fix that.


How can anyone sue JetBlue for coming in with a higher bid?


Here's a little Getty/Texaco/Pennzoil law & business history for you. $10.5 Billion in damages - in 1985 $.

https://www.latimes.com/archives/la-xpm ... story.html


And here’s a little Getty/Texaco/Pennzoil law & business history for you: one was a negotiation in which the second and third parties violated SEC regulations and acted in a secret way, and one is an unsolicited bid in which the second party put out a press release announcing the unsolicited bid.

So tell me again how it’s the same? Or any different than any other bidding war in the airline industry in the last 25 years?
 
Boof02671
Posts: 3128
Joined: Sun Jul 10, 2016 12:15 am

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:52 pm

Brickell305 wrote:
Boof02671 wrote:
Would never pass the DOJ it would give the combined airline 48% market share at FLL and a 26% market share at MCO.

Neither of those is particularly high. I agree that the DOJ might take issue with this but not because of market share in FLL or MCO, neither of which would be dominated by the combined carrier nor are slot controlled. I think it would most likely take issue with the elimination of a ULCC if they choose to convert NK to the B6 model going forward and not the other way around.

Actually it is high.

B6/NK 49%
WN 14.87%
DL 12.48%
AA 9.58%

The combined carrier would the dominate at FLL.
 
positiverate
Posts: 1587
Joined: Thu May 05, 2005 10:35 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:53 pm

DarkSnowyNight wrote:
wjcandee wrote:
Smacks of a real Red Team/Green Team issue in the future. Or maybe this is just WN swallowing AirTran, but with compatible aircraft types. Goal: Eliminate a competitor, pure and simple.



NK & B6 are too close in size for that to be a realistic possibility.


catiii wrote:
Makes sense to me. One of the last moves out there. Efficiencies with fleet. They can take NK’s airplanes and redeploy them. They don’t have to fly NK’s full network. A way to grow massively at a lower cost than organically.


Maybe. But I am not convinced organic growth is necessarily more expensive than this.


$3.6B for:

155 airplanes and orders for 312 more with crews to fly them;

Significant growth in Las Vegas, Dallas, Houston, Chicago, Detroit, Atlanta and Miami;

Adding JetBlue to all the other markets they don’t already serve;

This also assumes they’re going to fly the NK network. They’ll likely redeploy the fleet to other uses as well.

Really smart move by JetBlue. Keep their own control and grow significantly.
 
LHRFlyer
Posts: 1045
Joined: Sun Apr 11, 2010 12:50 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:56 pm

JetBlue has also confirmed its offer:

http://otp.investis.com/clients/us/jetb ... wsid=82372

NEW YORK--(BUSINESS WIRE)-- JetBlue (NASDAQ: JBLU) today confirmed it has submitted a proposal to the Board of Directors of Spirit (NYSE: SAVE) to acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion and providing full and certain value to Spirit shareholders. The proposal represents a premium of 52% to Spirit’s undisturbed share price on February 4, 20221, and a premium of 50% to Spirit’s closing share price on April 4, 20222. JetBlue firmly believes its proposal constitutes a “superior proposal” under Spirit’s merger agreement with Frontier and represents the most attractive opportunity for Spirit’s shareholders.

The combination of the two airlines would position JetBlue as the most compelling national low-fare challenger to the four large dominant U.S. carriers by accelerating JetBlue’s growth and expanding the reach of the “JetBlue Effect,” which occurs when legacy carriers react to JetBlue’s unique combination of low fares and award-winning customer service with lower fares. JetBlue triggers significantly greater fare decreases from legacy airlines when it enters a new market than when ultra-low-cost carriers enter a market.

“Customers shouldn’t have to choose between a low fare and a great experience, and JetBlue has shown it’s possible to have both,” said Robin Hayes, JetBlue CEO. “When we grow and introduce our unique value proposition onto new routes, legacy carriers lower their fares and customers win with more choice. The combination of JetBlue and Spirit – coupled with the incredible benefits of our Northeast Alliance with American Airlines – would be a game changer in our ability to deliver superior value on a national scale to customers, crewmembers, communities, and shareholders. The transaction would accelerate our strategic growth and create sustained, long-term value for the stakeholders in both companies.”
 
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NameOmitted
Posts: 1133
Joined: Sun Oct 23, 2016 7:59 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:57 pm

UALFAson wrote:
Where does this leave AS? They're they ones who really need a dance partner. At least B6 has (had?) AA.

AS is in an alliance with AA.
 
dopplerd
Posts: 192
Joined: Fri Jul 01, 2016 7:30 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:58 pm

Spirit owns about 60% of their fleet. The Frontier deal always seemed underpriced given the value of Spirit's assets. The value of an A320 is holding pretty steady so in one move JetBlue could increase their fleet size, eliminate a competitor, and fund a large portion of the deal through selling/leasebacks of aircraft. Looks like a pretty solid play by my quick look at the numbers.
 
Jshank83
Posts: 5274
Joined: Tue Nov 01, 2016 2:23 pm

Re: JetBlue bids 3.6B for Spirit

Tue Apr 05, 2022 8:59 pm

Boof02671 wrote:
Brickell305 wrote:
Boof02671 wrote:
Would never pass the DOJ it would give the combined airline 48% market share at FLL and a 26% market share at MCO.

Neither of those is particularly high. I agree that the DOJ might take issue with this but not because of market share in FLL or MCO, neither of which would be dominated by the combined carrier nor are slot controlled. I think it would most likely take issue with the elimination of a ULCC if they choose to convert NK to the B6 model going forward and not the other way around.

Actually it is high.

B6/NK 49%
WN 14.87%
DL 12.48%
AA 9.58%

The combined carrier would the dominate at FLL.


I think they are saying in general it isn't though.
CLT is like 90%? AA
There are plenty of airports over 50% WN

I would guess there are a fair amount of airports with over 50% one carrier. So 49% for your highest isn't that uncommon.
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