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RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 8:40 am
by JumboBumbo
From a finance POV, DL *should* buy B6 or any other airline for that matter if doing so increases the Net Present Value (NPV) of the firm, period. If Delta crunches the numbers and takes into account all the labor/fleet commonality/market share issues and a deal for B6 has positive NPV, they should do it. Otherwise the managers of DL aren't looking out for the interests of the shareholders.

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 8:54 am
by worldtraveler
these rumors have been around for several months - fueled in part by DL's COO comments that stated that B6 might be of interest to DL for exactly the reasons some have pointed out.

Nonetheless, DL just emerged from BK and is not likely to be out trying to buy anyone right now.

B6 has had a crisis of leadership that resulted in their CEO being asked to step down - a pretty heady step for a board to take for a founder of a company. The stock did not soar but Wall Street doesn't like uncertainty and B6 is facing alot of uncertainty - including a much stronger DL that is making it alot harder for B6 to continue to expand. That doesn't mean DL is on the verge of buying B6 - at least for now.

And it is very likely that DL could buy B6 from an antitrust perspective. NYC is a huge market w/ multiple competitors operating out of multiple airports. Even though DL and B6 are the only carriers on some routes from JFK, there are other competitors from other NYC airports operating nonstop.

take a chilll... this is just another Wall Street rumor... how many times have we heard that the industry would consolidate over the past 5 years. when it happens, you'll know it.

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 9:57 am
by XJetflyer
I'm calling this one "BULL"! No way Delta can pull this off in their position.

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 10:27 am
by isitsafenow
Quoting XJETFlyer (Reply 54):
No way Delta can pull this off in their position.

But you don't understand business. It's not their money. It's the banks and the lending institutions and it may be in the new business plan(buy a competitor)to escape chapter 11. That part we don't really know. It's speculation on my part.

safe

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 10:32 am
by worldtraveler
it is no more unrealistic than Doug Parker thinking that US can buy a company twice its size...

fortunately, DL is run now by people who understand what it takes to thrive in business.... if buying B6 makes sense and can be financially justified, they will do it. but right now, I doubt that spending $2.5B on B6 is the most pressing thing on DL's plate.... esp. since it does nothing to add any int'l aircraft to serve Asia which is what DL most needs.

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 11:15 am
by RL757PVD
Well Delta needs a new $1 B terminal at JFK and they need 50 or so 100 seaters (E190s)

Those two needs come to $2.5 Billion

I believe someone said B6's current market cap is 1.9 billion... if DL can offer a 30% premium and pay $2.5 Bil, they essentially get the airbus's "Free" They can either keep them, sell them, or spin them off intoa seperate airline.

Best thing is they pay 2.5 Billion and they GET IT NOW.... or they can pay 2.5 Bil and get it in 2010.

From a business standpoint it makes perfect sense

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 11:50 am
by rjpieces
This is the first time I've thought of such a pairing, but I like the idea of it. Delta could adopt B6's product on domestic flights, they could quit competing on regional routes from JFK, Delta's international service would be better off, and best of all it would allow Delta to finally close Terminal 3.

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 12:56 pm
by AwysBSB
Is US taking over B6 out of the question?

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 1:05 pm
by Jawed
So JFK787NYC, tell me when you plan to dump the JetBlue stock, so I can do it before you do...

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 1:10 pm
by steeler83
Quoting AwysBSB (Reply 59):
Is US taking over B6 out of the question?

As argued 854 times in other threads, US should focus on finishing the US/HP merger first... then perhaps they could look at another airline (hopefully not B6). Even at that, turbulence looks to be in US' future as is. I don't think they'll announce any new mergers any time soon...

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 9:22 pm
by ncelhr
Quoting JFK787NYC (Reply 8):
Delta can not afford it? I am sure Boeing would not be against this takeover as they will get an airline which is growing that has right now 125 Airbus A320. The airline business is growing more passangers traveling they will eventually have to order more planes. The 125 A320 could be sold without a problem with all there added extras. The Russians (Not Aeroflot) would take probably half of them.

Boeing recieves an order for 125 737-800, 100 787, 6-8 777w? seems about right. am i wrong?

Unlikely that they'd replace all JBs A320s with 738s - how much would you think it costs to re-qualify hundreds of pilots on 738?

 scratchchin 

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 10:02 pm
by kappel
Quoting Ncelhr (Reply 61):
Unlikely that they'd replace all JBs A320s with 738s - how much would you think it costs to re-qualify hundreds of pilots on 738?

Not only that, but it would be a huge and IMHO unnecessary investment, on top of the "purchase price" of B6. 125 A320's is a large enough subfleet to cover for the extra cost of spares etc, right?

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Fri May 11, 2007 11:55 pm
by rampart
Quoting RJpieces (Reply 57):
This is the first time I've thought of such a pairing, but I like the idea of it. Delta could adopt B6's product on domestic flights

They did already, and it didn't pan out as well. They called it "Song".

My opinion, I'd rather not see this come to pass. I can't agree with the logic.

-Rampart

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Sat May 12, 2007 12:44 am
by CO777DAL
I’m think this might not be such a bad deal for CO. DL takes over B6 and pretty much pulls everything out of EWR. CO does not have a LLC driving down revenue. DL, CO, AA raises fares at JFK, EWR, LGA and make more money. Sure CO EWR would have to compete with DL JFK on many routes, but I think CO can hold their own against DL and it better than going against a LLC. AA, DL, CO could turn NYC market into a super cash cow with the lack of LLC if DL buys B6!

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Sat May 12, 2007 4:26 am
by HVNandrew
Quoting CO777DAL (Reply 64):
I�m think this might not be such a bad deal for CO. DL takes over B6 and pretty much pulls everything out of EWR. CO does not have a LLC driving down revenue. DL, CO, AA raises fares at JFK, EWR, LGA and make more money. Sure CO EWR would have to compete with DL JFK on many routes, but I think CO can hold their own against DL and it better than going against a LLC. AA, DL, CO could turn NYC market into a super cash cow with the lack of LLC if DL buys B6!

Why would DL pull everything out of EWR?

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Sat May 12, 2007 4:29 am
by richierich
Quoting Rampart (Reply 63):
They did already, and it didn't pan out as well. They called it "Song".

My opinion, I'd rather not see this come to pass. I can't agree with the logic.

This might be the one topic that the pro-Delta crowd and the pro-JetBlue crowd can actually see eye to eye on!!  Smile

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Sat May 12, 2007 5:13 am
by Flighty
Quoting ChiGB1973 (Reply 16):

This will absolutely change. Business class will be added without a doubt.

Interesting, where do you get your info? JetBlue would do great with Business Class. AirTran has it, and if you ask me, JetBlue is more premium than AirTran (and serves more premium markets). Anyone is free to disagree with that.

RE: JetBlue TakeOver Speculation JetBlue Stock Soaring

Posted: Sat May 12, 2007 9:26 am
by SkyexRamper
Come one B6 and F9, 100% owned fleet commonality with 50% contracted fleet commonality.