Originally Posted by
EdGrimley
Wolfe: Delta’s move into Boston could ultimately prove good news for JetBlue • 6:49 PM
Delta Air Lines (DAL) last week included Boston in its list of key hubs and markets for the first time, worrying JetBlue (JBLU) investors, but Wolfe Research thinks DAL’s decision could be good news for JBLU, much in the way it ultimately was for Alaska Air (ALK).
Wolfe believes JBLU management seeks a 7% return on investment capital this year, but it does not see it happening under the current strategy; the firm figures DAL's growth into Boston might help to force hard choices, as it did for Alaska Air.
ALK shares fell 26% from peak to trough in May-June 2013 on fears of competitive capacity growth, which led it to take action on fees and resulting in ALK stock gains doubling over the next year.
Previous: Aggressive push by Delta Air Lines disrupts rivals.
That was one of the funniest analcyst articles I've read in a very long time.
So DL's refocus in BOS (I'll believe it when I see it by the way) is good for JB because its going to hammer JB and force them to change almost everything about their business model (did you see he even put "fleet simplification" in there! LOL!) so let's price that in now.
That's good stuff. I mean that's
really good stuff.