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- airlinepeanuts
- Posts: 415
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What's next for Alaska Airlines
Assuming the Spirit/Jetblue merger goes through, the combined airline will be the 5th largest. Where does that leave Alaska? Where do they go from here? It seems like they're too big to be a takeover target but who would they buy if they want to become larger?
Re: What's next for Alaska Airlines
In 6th place. 
According many posters stuck in the PNW with no plan to grow or do anything. According to a few posters about to unvail their super secret plan to blow people's minds. Pick either side, some people will agree with you either way.
According many posters stuck in the PNW with no plan to grow or do anything. According to a few posters about to unvail their super secret plan to blow people's minds. Pick either side, some people will agree with you either way.
Re: What's next for Alaska Airlines
Rumor has it Frontier is looking for a merger partner 
Re: What's next for Alaska Airlines
airlinepeanuts wrote:Assuming the Spirit/Jetblue merger goes through, the combined airline will be the 5th largest. Where does that leave Alaska? Where do they go from here? It seems like they're too big to be a takeover target but who would they buy if they want to become larger?
That is how we got down to four large majors, everyone kept asking that question.
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- BWIAirport
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Re: What's next for Alaska Airlines
Every airline doesn't have to merge, right?
Re: What's next for Alaska Airlines
AS is probably solid for now and will continue their natural growth having 139 planes on order and the growth of their freighter business. They'll be aggressive in protecting the West Coast I'm sure from a combined B6/NK as historically this has been the case. Sun Country would probably be the most logical carrier left to combine with or I could see them waiting to see where Avelo goes down the line (if anywhere), but other than that I can't see any merger that would really make sense + they're still dealing with the aftermath of the rocky VX acquisition. Frontier acquiring Alaska would be mess fleet wise and AS is trying to off load the A32Xs.
Re: What's next for Alaska Airlines
Right now the Spirit/JetBlue merger is 5th largest. I have my doubts about how two completely different businesses can integrate. If I were Alaska I’d keep expanding my west coast routes and service, pick eastward markets that make sense, and see what happens. It’s not implausible that the JetBlue merger goes so wrong that they’re suddenly back to 5th place and on an expansion path unhindered by the massive debt of the takeover, or that in a weaker economy they get courted by someone in BK to combine with
Re: What's next for Alaska Airlines
I thought JetBlue should have got Virgin America at the time.
Re: What's next for Alaska Airlines
gmcc wrote:In 6th place.
That's the concise version!
AS spent a lot for VX, then has spent hundreds of $ millions more in impairment charges to make 319/320/321s go away. I'm pretty sure AS doesn't want Frontier's Airbuses.
The industry is really at the point where prospective acquirers need to look hard at mergers and the inevitable integration costs vs. organic growth. What would Sun Country give Alaska? 55 middle-age 738s (when ASA has orders to start repacing their own 738s), labor integration headaches, and a few gates in MSP where growth by AS would be strongly contested. It might be worthwhile if SY were falling into bankruptcy and AS could get it for about nothing, the way AA did for TWA assets.
SY's market cap today is $1.1 Billion, so plan on spending $1.5-$2.0 to acquire it. Not for me, thanks.
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- IAmGaroott
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Re: What's next for Alaska Airlines
lostsound wrote:AS is probably solid for now and will continue their natural growth having 139 planes on order and the growth of their freighter business. They'll be aggressive in protecting the West Coast I'm sure from a combined B6/NK as historically this has been the case. Sun Country would probably be the most logical carrier left to combine with or I could see them waiting to see where Avelo goes down the line (if anywhere), but other than that I can't see any merger that would really make sense + they're still dealing with the aftermath of the rocky VX acquisition. Frontier acquiring Alaska would be mess fleet wise and AS is trying to off load the A32Xs.
Call me crazy, but it wouldn’t shock me if G4 makes a move on SY. Especially since the former has those MAXs on order. Both airlines are vacation focused and I’m sure those Amazon freighter contracts are desirable.