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Runway765
Posts: 814
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:19 pm

11C wrote:
Runway765 wrote:
fastmover wrote:


That is not necessarily true.


How so?

And how are people so convinced B6/NK is going to pass the DOJ sniff test? It’s clear what B6’s motives are here.


I think their motives have been stated pretty clearly. The want to grow in order to compete against the industry behemoths (all of whom benefited from their own M&A activities). What’s best for consumers is a vague, subjective measure that is tossed around indiscriminately. A 321 stuffed with angry people, with no legroom, no amenities, and hostile service is what the industry needs? Not for my dollar.


Then why didn’t B6 go for NK sooner and wait until the prospect of an F9 merger came about to make an offer?

Like I said above, I’m not convinced for one second B6 is truly going to grow to become more accessible to those outside of the northeast/Florida. They’ve had plenty of opportunities to establish mid-continent hubs to make them more accessible (i.e, AUS) and have failed to do so every time.

Consumers (with few exceptions) tend to care about one thing only, price. A bulked up F9 will be able to offer more low fare flights against the US4 than a higher cost B6 will.
 
cledaybuck
Posts: 2125
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:22 pm

fastmover wrote:
Runway765 wrote:
fastmover wrote:


That is not necessarily true.


How so?

And how are people so convinced B6/NK is going to pass the DOJ sniff test? It’s clear what B6’s motives are here.



What are they?

To eliminate a competitor. Especially one that is giving them all kinds of competition in FLL.
 
TYWoolman
Posts: 1398
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:25 pm

tlecam wrote:
TYWoolman wrote:
tlecam wrote:

Whose reputation are you referring to? And with whom is it damaged?


An institutional investment firm's reputation damaged with their client's trust on making sound judgements for them. Recommending a comparatively risky regulatory push with B6 may be deemed irresponsible given the safer F9 option.



But what is the trigger for their reputation damage? The merged operations fail? Stock price lags? Company goes to Ch. 7?

Reputational damage for the institutional investor is unlikely to implausible. It’s difficult to impossible to tie any poor performance directly to the deal itself. It’s highly unlikely that an institutional investor is on an island by itself; they tend to vote in groups and it’s not uncommon to see most of the institutional investors on one side or the other. And the impact of one security on its portfolio will be heavily muted.


Thanks for that in-depth response. My comment wasn't so much to analyze whether there is legal ramifications, but rather Institutional Investment Firms imo would tend to advocate the deal that doesn't lead to an over abundance of scrutiny.
 
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Midwestindy
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:25 pm

https://otp.investis.com/clients/us/jet ... wsid=84067

More from Blue

"In its new report, ISS, citing the recent changes to JetBlue’s offer, noted that “the enhancements by JetBlue may be enough to offset the potential upside of the proposed merger with Frontier (particularly when the market reaction to last week's developments is considered – Spirit share price decreased 8.0 percent on June 27, 2022, the first trading day after announcement of the revised Frontier offer terms).”

ISS further noted that “the gap between the headline offers has not only widened since Spirit and Frontier modified the deal terms late last week, but the prepayment dividend and the reverse termination fee accompanying the JetBlue offer are now more favorable for Spirit shareholders than the corresponding provisions accompanying the Frontier offer. At the same time, the addition of the ticking fee in the JetBlue offer – a provision without a counterpart in the Frontier offer – provides a further level of regulatory risk mitigation.”
Last edited by Midwestindy on Tue Jun 28, 2022 1:27 pm, edited 1 time in total.
 
Jshank83
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:26 pm

I am just ready for whatever votes need to take place to happen.
 
dopplerd
Posts: 220
Joined: Fri Jul 01, 2016 7:30 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:29 pm

Runway765 wrote:
fastmover wrote:
Runway765 wrote:

How so?

And how are people so convinced B6/NK is going to pass the DOJ sniff test? It’s clear what B6’s motives are here.



What are they?

It might pass it might not. But there is no guarantee that if you eliminate spirits biggest rival that it will be better for consumers.


I’d rather take my chances with a bulked up ULCC that can better take on and put pressure on the US3 and WN over B6 which has a proven track record of NOT expanding in any meaningful way outside the Northeast/Florida and is just buying NK for planes and employees.

Why didn’t B6 go for NK sooner if they are so interested in them? It’s clear they are afraid of a combined F9/NK.


According to this (which is also just and interesting read):

https://finance.yahoo.com/news/top-gun- ... 37653.html

JetBlue was has a long standing plan to buy Spirit. It was put on the shelf with covid and only revisited when Frontier deal came to light.
 
11C
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:32 pm

sxf24 wrote:
11C wrote:
Runway765 wrote:

How so?

And how are people so convinced B6/NK is going to pass the DOJ sniff test? It’s clear what B6’s motives are here.


I think their motives have been stated pretty clearly. The want to grow in order to compete against the industry behemoths (all of whom benefited from their own M&A activities). What’s best for consumers is a vague, subjective measure that is tossed around indiscriminately. A 321 stuffed with angry people, with no legroom, no amenities, and hostile service is what the industry needs? Not for my dollar.


The US Government has established a clear standard for consumer benefit: more capacity and lower fares from airlines that are able to reliably deliver the service. A superior product at a higher cost and lower capacity has historically not carried weight.


Luckily, the US government is not in the airline business. More capacity, at a lower cost is a brutally low standard (commoditization of an industry is the end goal?). Does that mean that stand up “seats” and pay toilets are an inevitability? Again, not for my dollar, not for business travelers, not for anyone who cares about safety, because at some point the pursuit of profits will compromise safety, if we use the standard you espouse.
 
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Polot
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:34 pm

11C wrote:
sxf24 wrote:
11C wrote:

I think their motives have been stated pretty clearly. The want to grow in order to compete against the industry behemoths (all of whom benefited from their own M&A activities). What’s best for consumers is a vague, subjective measure that is tossed around indiscriminately. A 321 stuffed with angry people, with no legroom, no amenities, and hostile service is what the industry needs? Not for my dollar.


The US Government has established a clear standard for consumer benefit: more capacity and lower fares from airlines that are able to reliably deliver the service. A superior product at a higher cost and lower capacity has historically not carried weight.


Luckily, the US government is not in the airline business.

The US government is most certainly involved in the airline business. They have the power to kill mergers, grant antitrust immunities, revoke antitrust immunities, etc.

From a free market standpoint you should not care about onboard service. If everyone is racing to the bottom and people are willing to pay for service than either an airline can offer a higher service tier or a new entrant can come in and take those passengers with better service (much like B6 did 20 years ago).
 
frmrCapCadet
Posts: 5657
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 1:59 pm

questions wrote:
B6 needs to walk away from this disaster.

If B6 does, where does that leave B6, AS, HA and G4?


Alaska, Hawaii, and Jet Blue are regionals plus, and add another plus, slightly upscale. Were they allowed to do some joint strategy in return for good coverage in their separate regions they should not have to compete against each other in most cases. They should be encouraged to compete against the big four.
Last edited by frmrCapCadet on Tue Jun 28, 2022 2:02 pm, edited 1 time in total.
 
TYWoolman
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:01 pm

 
dopplerd
Posts: 220
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:08 pm

I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.
 
santi319
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:10 pm

TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!

This is sooo embarassing, but considering NK’s and F9’s current management not surprised..
 
sxf24
Posts: 2005
Joined: Wed Aug 15, 2007 12:22 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:14 pm

dopplerd wrote:
I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.


I’m not aware of a single route where the combined NK-F9 will dominate (excluding routes where they each dominate today, such as out of ACY, TTN or MRY).
 
FlyinRabbit88
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:17 pm

https://youtu.be/tQOSb2at2go

At the 5 min mark…

Shows ya how out of touch the Frontier CEO is when the interview brings up the rising pay at other airlines. A pilot surplus huh? And Frontier pilots don’t need a raise since they will upgrade in 4 years and make more than a legacy/other airlines, plus Frontier pilots get weekends and Holidays off.

Come on now.
 
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tlecam
Posts: 1848
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:21 pm

dopplerd wrote:
I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.


The other consideration that is relatively new relative to competition and anti-trust evaluation is that AA/DL/UA now offer some low cost competition via their basic economy fares.
 
dopplerd
Posts: 220
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:21 pm

TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!


Interesting, because I had the opposite reaction. I was half expecting to read, "and Robin Hayes has an accent, can you really trust someone with an accent?"

Christie, Biffle and Franke this morning: https://www.youtube.com/watch?v=ghrdSTC66MA
 
fastmover
Posts: 735
Joined: Mon Mar 30, 2015 5:37 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:23 pm

Runway765 wrote:
fastmover wrote:
Runway765 wrote:

How so?

And how are people so convinced B6/NK is going to pass the DOJ sniff test? It’s clear what B6’s motives are here.



What are they?

It might pass it might not. But there is no guarantee that if you eliminate spirits biggest rival that it will be better for consumers.


I’d rather take my chances with a bulked up ULCC that can better take on and put pressure on the US3 and WN over B6 which has a proven track record of NOT expanding in any meaningful way outside the Northeast/Florida and is just buying NK for planes and employees.

Why didn’t B6 go for NK sooner if they are so interested in them? It’s clear they are afraid of a combined F9/NK.



You know they are buying the planes and employees (which is what f9 is as well) so they can expand in a meaningful way.

Also they were working on it
There was a Bloomberg article with the inside scoop that JetBlue has been looking at spirit for a while
 
fastmover
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:25 pm

sxf24 wrote:
fastmover wrote:
sxf24 wrote:

The document is pretty brutal, in part because it uses B6’s own words and data to attack it.

I found this line particularly cutting: “Name-calling, and accusing those who disagree with you as not even fit to do their jobs, is not “Inspiring Humanity.” Nor is it particularly wise, or engendering of good will, or a course of action that makes JetBlue’s claims and arguments seem particularly credible.”



That’s nice PR but there is negotiations in good faith and than there is playing games. Are we going to move the vote again?

Here is what the TIG advisors said.

We firmly believe that if, as shareholders, we must wait for a transaction to be consummated following a lengthy regulatory process, we are much better off waiting alongside JetBlue, which is willing to compensate us along the way. The Board’s self-serving actions and failure to accept JetBlue’s $33.50 per share offer is preventing shareholders from receiving superior value.


There is nothing to indicate or prove that negotiations have not been conducted in good faith. While B6, and some investors, believe their offer is superior because of the higher dollar value, NK has a legally-sound argument for why F9’s offer is superior.

Using words like “self-serving” to question the actions of NK’s board is dangerous because there is no proof, only hurt feelings that B6’s offer is not being supported.

B6’s management had a valid strategy and we’re smart to pursue the merger. In my opinion, they’ve been outplayed and are reacting immaturely. Shareholders will decide and I would expect it to be close based on varying preferences.



I think you have that completely backwards
 
fastmover
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:27 pm

cledaybuck wrote:
fastmover wrote:
Runway765 wrote:

How so?

And how are people so convinced B6/NK is going to pass the DOJ sniff test? It’s clear what B6’s motives are here.



What are they?

To eliminate a competitor. Especially one that is giving them all kinds of competition in FLL.


And you think f9 is doing it out of the goodness of their heart?
They also want to eliminate a competitor. I don’t know why this is not underood. Both companies want the same thing.
Last edited by fastmover on Tue Jun 28, 2022 2:32 pm, edited 1 time in total.
 
TYWoolman
Posts: 1398
Joined: Sat Jun 24, 2017 8:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:29 pm

Midwestindy wrote:
https://otp.investis.com/clients/us/jetblue_airways/usn/usnews-story.aspx?cid=981&newsid=84067

More from Blue

"In its new report, ISS, citing the recent changes to JetBlue’s offer, noted that “the enhancements by JetBlue may be enough to offset the potential upside of the proposed merger with Frontier (particularly when the market reaction to last week's developments is considered – Spirit share price decreased 8.0 percent on June 27, 2022, the first trading day after announcement of the revised Frontier offer terms).”

ISS further noted that “the gap between the headline offers has not only widened since Spirit and Frontier modified the deal terms late last week, but the prepayment dividend and the reverse termination fee accompanying the JetBlue offer are now more favorable for Spirit shareholders than the corresponding provisions accompanying the Frontier offer. At the same time, the addition of the ticking fee in the JetBlue offer – a provision without a counterpart in the Frontier offer – provides a further level of regulatory risk mitigation.”


That was to be expected. But it seems that ISS is trying to be pretty vague IMO because they themselves know the larger regulatory hurdle B6 presents despite their short-term superior offer. Why can't they change their recommendation? They are putting this squarely on the individual and not standing up to what they REALLY believe.
Last edited by TYWoolman on Tue Jun 28, 2022 2:31 pm, edited 1 time in total.
 
fastmover
Posts: 735
Joined: Mon Mar 30, 2015 5:37 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:31 pm

sxf24 wrote:
dopplerd wrote:
I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.


I’m not aware of a single route where the combined NK-F9 will dominate (excluding routes where they each dominate today, such as out of ACY, TTN or MRY).



Is there one where JetBlue and spirit will dominate?
 
fastmover
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:33 pm

dopplerd wrote:
TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!


Interesting, because I had the opposite reaction. I was half expecting to read, "and Robin Hayes has an accent, can you really trust someone with an accent?"

Christie, Biffle and Franke this morning: https://www.youtube.com/watch?v=ghrdSTC66MA



Exactly right.
 
TYWoolman
Posts: 1398
Joined: Sat Jun 24, 2017 8:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:44 pm

tlecam wrote:
dopplerd wrote:
I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.


The other consideration that is relatively new relative to competition and anti-trust evaluation is that AA/DL/UA now offer some low cost competition via their basic economy fares.


That's true. Legacies have adapted, but that is an argument FOR more ULCC rather than 50% less in a higher-cost B6.
 
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Midwestindy
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 2:57 pm

https://www.businesswire.com/news/home/ ... h-Frontier

"Spirit Airlines Reaffirms Commitment to Merger with Frontier"

No delay of vote, get the popcorn machines going
 
TYWoolman
Posts: 1398
Joined: Sat Jun 24, 2017 8:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:03 pm

The odds that F9/NK will pass anti-trust muster is far greater, especially in this economic market. Taking out seats and 50% of the ULCC market is relatively quite harmful to competition below B6's cost-level. Divestitures may seem like the go-to remedy, but divestitures won't come in the form of planes and reserved-capacity. Divestitures could cause undue burden by way of start-up costs and employee retention on lower-cost models to utilize effectively what the divestiture is supposed to remedy. B6 can very well divest almost half of NK, if needed, because they will have succeeded at stopping F9 from getting the scope necessary to be the most effective B6 competitor in the future.
 
TYWoolman
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:12 pm

 
Wneast
Posts: 1692
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Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:18 pm

TYWoolman wrote:
https://www.businesswire.com/news/home/20220628005862/en/Spirit-Airlines-Reaffirms-Commitment-to-Merger-with-Frontier

Case closed.
Hello you obviously all for frontier but the case isn’t closed because NK board isn’t making the decision even though they think that.
 
sxf24
Posts: 2005
Joined: Wed Aug 15, 2007 12:22 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:18 pm

fastmover wrote:
sxf24 wrote:
dopplerd wrote:
I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.


I’m not aware of a single route where the combined NK-F9 will dominate (excluding routes where they each dominate today, such as out of ACY, TTN or MRY).



Is there one where JetBlue and spirit will dominate?


I don’t know. But the DOJ will be looking at the removal of seats and decrease of competition in legacy hubs.
 
Mikeer50
Posts: 31
Joined: Mon Oct 31, 2016 3:12 am

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:20 pm

FlyinRabbit88 wrote:
https://youtu.be/tQOSb2at2go

At the 5 min mark…

Shows ya how out of touch the Frontier CEO is when the interview brings up the rising pay at other airlines. A pilot surplus huh? And Frontier pilots don’t need a raise since they will upgrade in 4 years and make more than a legacy/other airlines, plus Frontier pilots get weekends and Holidays off.

Come on now.


I’m not sure how he gets his pilot staffing numbers. His statement of a “surplus” of pilots would make Frontier the only airline in the country to have that “problem”. This notion is laughable. He mentions upgrade as an example of how a Frontier pilot makes more money than a legacy pilot. This seems a little out of touch. A 4 year captain at Frontier makes 220/hr, a 4 year 777 FO at United makes 210/hr. When you factor in total compensation it isn’t even close. The career progression at a legacy carrier is far and away better than at any LCC and certainly ULCC.
 
cledaybuck
Posts: 2125
Joined: Thu Aug 18, 2016 6:07 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:45 pm

fastmover wrote:
sxf24 wrote:
dopplerd wrote:
I guess a lot of this will depend on whether the DOJ takes an absolute or relative perspective on ticket prices. B6-NK will offer lower prices and increase seats compared to the Big 3 full service airlines, a benefit for those shopping in that market but reducing seats/routes in the ULCC market. F9-NK will reduce competition in the ULCC space so prices in that space could see some upward pressure on routes currently dominated by F9 and NK.

There are regulatory issues for both deals, I don't have the expertise to gauge which will face larger headwinds with the current DOJ. My hunch is that both will see a good bit of scrutiny with JetBlue slightly more challenged but not anything like Ted Christie's assessment that JetBlue is impossible and Frontier is a cakewalk.


I’m not aware of a single route where the combined NK-F9 will dominate (excluding routes where they each dominate today, such as out of ACY, TTN or MRY).



Is there one where JetBlue and spirit will dominate?

They look pretty dominant from FLL to the Caribbean.
 
airel
Posts: 17
Joined: Mon Nov 30, 2015 7:55 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:51 pm

Slightly off-topic (just trying to clear the air a bit!):
This morning a car crashed into Spirit's HQ. Nothing terrible, but of course there's all kind of jokes going around... "B6 is crashing the party!"... "RH just busted in!"
Image
 
MavyWavyATR
Posts: 407
Joined: Wed Dec 31, 2014 10:52 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:55 pm

Midwestindy wrote:
https://www.businesswire.com/news/home/20220628005862/en/Spirit-Airlines-Reaffirms-Commitment-to-Merger-with-Frontier

"Spirit Airlines Reaffirms Commitment to Merger with Frontier"

No delay of vote, get the popcorn machines going


This is gonna get ugly between the Board of Directors & shareholders if the F9 offer gets voted down.
 
Abeam79
Posts: 622
Joined: Thu Jul 03, 2014 3:16 am

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 3:57 pm

TYWoolman wrote:
https://www.businesswire.com/news/home/20220628005862/en/Spirit-Airlines-Reaffirms-Commitment-to-Merger-with-Frontier

Case closed.

What are you on? Lol it’s far from closed,
https://otp.investis.com/clients/us/jet ... wsid=84067
I love how you keep mentioned that F9 deal will pass regulatory measures easier, please refer to iss initial filing saying both face equal scrutiny from doj. Again, you keep ignoring the overlap is far great with NK/f9 than B6/NK.
That 10 page presentation by frontier is so absurd and embarrassing at least. No wonder their whole shady process not doing the shareholder fiduciary responsibility has acted out as such.
Here a lil more reading material

https://www.businesswire.com/news/home/ ... p-Holdings
Excerpt
“ JetBlue has made its commitment clear, compensating Spirit shareholders with $470 million in the form of an upfront payment and a ticking fee. And yet, to shareholders’ detriment, the Board has continued to favor a Frontier transaction, recommending shareholders accept a bid that relies entirely on Frontier’s ability to massively improve its stock price while integrating a complex airline merger in a very risky macro environment.

The Board is being rather cavalier to assume that Frontier’s stock will appreciate by 80% to equal the JetBlue offer of $33.50 per share. Worse still, Spirit shareholders have an opportunity more easily participate in an airline recovery without being tied up in the complex Frontier deal scenario.”
 
Jetport
Posts: 370
Joined: Thu Apr 02, 2015 4:23 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:00 pm

Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.
 
Abeam79
Posts: 622
Joined: Thu Jul 03, 2014 3:16 am

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:15 pm

Jetport wrote:
Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.

Exactly, it’s quite pathetic how far off the basic tenet of doing their job for shareholders has enveloped into a personal enrichment. Very pathetic for the spirit board.
 
sxf24
Posts: 2005
Joined: Wed Aug 15, 2007 12:22 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:19 pm

Jetport wrote:
Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.


Yes. The NK board was clear that a commitment to terminate the NEA if required to obtain regulatory approval could make the B6 offer superior.

It’s pretty clear from F9 that NK management and most board members are not entitled to jobs in the new company. It is disingenuous to say this is a motivation.
 
sxf24
Posts: 2005
Joined: Wed Aug 15, 2007 12:22 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:20 pm

Abeam79 wrote:
Jetport wrote:
Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.

Exactly, it’s quite pathetic how far off the basic tenet of doing their job for shareholders has enveloped into a personal enrichment. Very pathetic for the spirit board.


This is an opinion that is not supported with facts.
 
cledaybuck
Posts: 2125
Joined: Thu Aug 18, 2016 6:07 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:23 pm

Jetport wrote:
Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.

Stunning? This had been corporate America's MO for years now. How many years ago was Enron?
 
dopplerd
Posts: 220
Joined: Fri Jul 01, 2016 7:30 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:29 pm

cledaybuck wrote:
Jetport wrote:
Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.

Stunning? This had been corporate America's MO for years now. How many years ago was Enron?


Remind me, how did that work out for Enron leadership and stockholders? If Spirit board is anything close to Enron then the B6 deal should be a no brainer.
 
sxf24
Posts: 2005
Joined: Wed Aug 15, 2007 12:22 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:33 pm

dopplerd wrote:
cledaybuck wrote:
Jetport wrote:
Is there any price/package JetBlue could offer that Spirit's board would accept? The Spirit board obviously doesn't care at all about their owners (shareholders) best interests. This is the worst example I have ever seen of a board/management team trying to save their jobs at the expense of their shareholders, absolutely stunning.

Stunning? This had been corporate America's MO for years now. How many years ago was Enron?


Remind me, how did that work out for Enron leadership and stockholders? If Spirit board is anything close to Enron then the B6 deal should be a no brainer.


Alleging the NK board is complicit in fraud is inappropriate and unnecessarily personal. Unfortunately, these types of attacks is the current B6 playbook rather than taking the high road and focusing on facts.
 
TYWoolman
Posts: 1398
Joined: Sat Jun 24, 2017 8:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:34 pm

Abeam79 wrote:
TYWoolman wrote:
https://www.businesswire.com/news/home/20220628005862/en/Spirit-Airlines-Reaffirms-Commitment-to-Merger-with-Frontier

Case closed.

What are you on? Lol it’s far from closed,
https://otp.investis.com/clients/us/jet ... wsid=84067
I love how you keep mentioned that F9 deal will pass regulatory measures easier, please refer to iss initial filing saying both face equal scrutiny from doj. Again, you keep ignoring the overlap is far great with NK/f9 than B6/NK.
That 10 page presentation by frontier is so absurd and embarrassing at least. No wonder their whole shady process not doing the shareholder fiduciary responsibility has acted out as such.
Here a lil more reading material

https://www.businesswire.com/news/home/ ... p-Holdings
Excerpt
“ JetBlue has made its commitment clear, compensating Spirit shareholders with $470 million in the form of an upfront payment and a ticking fee. And yet, to shareholders’ detriment, the Board has continued to favor a Frontier transaction, recommending shareholders accept a bid that relies entirely on Frontier’s ability to massively improve its stock price while integrating a complex airline merger in a very risky macro environment.

The Board is being rather cavalier to assume that Frontier’s stock will appreciate by 80% to equal the JetBlue offer of $33.50 per share. Worse still, Spirit shareholders have an opportunity more easily participate in an airline recovery without being tied up in the complex Frontier deal scenario.”



I respect your opinion. Of course both face equal scrutiny because that's the job of the DOJ to equally apply their standard. But they both won't have equal outcomes. One can debate the financials until we are blue in the face (no pun intended), but if B6 cannot get consummated all the illusion of financial gain is only the reverse break-up fee, lost F9 opportunity, a weaker NK and a weaker B6 (which is why B6 framed their bid with a component that does NOT require their shareholder approval).

ISS doesn't definitively hold any position from what I am reading. At the end of the day ISS tries to be all things to all shareholders. F9 is the safer bet for shareholders, for institutional investing firms to back (will be consummated), and one that drives the most competitive disruption.

https://ir.flyfrontier.com/node/8166/pdf Take excerpts from here.
Last edited by TYWoolman on Tue Jun 28, 2022 4:50 pm, edited 2 times in total.
 
VS11
Posts: 1969
Joined: Mon Jul 02, 2001 6:34 am

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:37 pm

TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!


Really? This is just rambling. First time I see such poorly constructed corporate document so publicly distributed.
 
TYWoolman
Posts: 1398
Joined: Sat Jun 24, 2017 8:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:38 pm

VS11 wrote:
TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!


Really? This is just rambling. First time I see such poorly constructed corporate document so publicly distributed.



The floor is yours.
 
santi319
Posts: 1463
Joined: Thu Dec 29, 2005 3:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:38 pm

VS11 wrote:
TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!


Really? This is just rambling. First time I see such poorly constructed corporate document so publicly distributed.


Its hilariously sad, and beyond unprofessional, even if they do merge, as a shareholder I’ll be worried about the way a management like this runs things.
 
TYWoolman
Posts: 1398
Joined: Sat Jun 24, 2017 8:24 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:43 pm

santi319 wrote:
VS11 wrote:
TYWoolman wrote:
https://ir.flyfrontier.com/node/8166/pdf


Brilliant beyond words!!!!


Really? This is just rambling. First time I see such poorly constructed corporate document so publicly distributed.


Its hilariously sad, and beyond unprofessional, even if they do merge, as a shareholder I’ll be worried about the way a management like this runs things.


Enlighten your fellow shareholders, if you are actually a shareholder. And if not, enlighten them anyway.
https://ir.flyfrontier.com/node/8166/pdf
 
Mikeer50
Posts: 31
Joined: Mon Oct 31, 2016 3:12 am

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:53 pm

If B6 cannot get the deal past the DOJ, Spirit will get $400m and be merging with F9 within 6 months. Anyone is crazy to believe F9 wouldn’t try again. This time the terms would be even better for F9.
 
F9Animal
Posts: 4939
Joined: Thu Dec 16, 2004 7:13 am

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 4:54 pm

airel wrote:
Slightly off-topic (just trying to clear the air a bit!):
This morning a car crashed into Spirit's HQ. Nothing terrible, but of course there's all kind of jokes going around... "B6 is crashing the party!"... "RH just busted in!"
Image


I'm dying! Oh man!

Does anyone else have a vision of Spirits too shareholders sitting in a jacuzzi tub, sipping on fine champagne, all smiles?

At this point, could Spirit just say "no thanks" to both and continue on solo? Is Spirit still viable on its own?
 
fastmover
Posts: 735
Joined: Mon Mar 30, 2015 5:37 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 5:04 pm

sxf24 wrote:
dopplerd wrote:
cledaybuck wrote:
Stunning? This had been corporate America's MO for years now. How many years ago was Enron?


Remind me, how did that work out for Enron leadership and stockholders? If Spirit board is anything close to Enron then the B6 deal should be a no brainer.


Alleging the NK board is complicit in fraud is inappropriate and unnecessarily personal. Unfortunately, these types of attacks is the current B6 playbook rather than taking the high road and focusing on facts.



Well maybe they are?
 
fastmover
Posts: 735
Joined: Mon Mar 30, 2015 5:37 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 5:05 pm

TYWoolman wrote:
https://www.businesswire.com/news/home/20220628005862/en/Spirit-Airlines-Reaffirms-Commitment-to-Merger-with-Frontier

Case closed.



Good well they better hold that vote, but they have been saying this the entire time anyway.
 
fastmover
Posts: 735
Joined: Mon Mar 30, 2015 5:37 pm

Re: JetBlue Makes Hostile Takeover Offer for Spirit

Tue Jun 28, 2022 5:08 pm

sxf24 wrote:
fastmover wrote:
sxf24 wrote:

I’m not aware of a single route where the combined NK-F9 will dominate (excluding routes where they each dominate today, such as out of ACY, TTN or MRY).



Is there one where JetBlue and spirit will dominate?


I don’t know. But the DOJ will be looking at the removal of seats and decrease of competition in legacy hubs.



Ok but we keep going over this seat thing. Are we assuming that spirit and f9 will keep the same amount of seats and flights where they currently go head to head? Maybe maybe not.

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