Originally Posted by
Missed Appch
I don't know man. Anyone interested in buying us can see worse case scenario for them and what the costs will be. Why not buy us now and have us for cheap until it's time for a new contract. They could get two years out of us being the lowest paid bus drivers in the industry and continue to laugh all the way to the bank with the ridiculous duration of this LOA.
What's not to like (for them)? Frankly I don't think it makes one iota of difference if we have a contract or not.
That being said. I am certainly no business expert and could be 100% wrong. It sure as hell wouldn't be the first time.
I think it's optimistic to think a contract is coming any time soon. I believe Spirit buys Frontier in 1-2 years. Franke wanted it when he was on the board at Spirit. Biffle has morphed F9's business model into a spitting image of NK's. Fornaro was brought to NK clean up the image and improve performance metrics, but also because he has the M&A experience. Baldanza wanted to grow NK organically, so he was given the boot. Once F9 is IPOed and SAVE stock reaches a predetermined value as to not dilute the share price too badly, Spirit will make a bid using mostly stock and save their cash reserves to fund continued growth. There is very little route structure overlap, but that's starting to change as both airlines grow and begin to infringe on the each other's territory. Common fleet, common reservation system, common business strategy...it's basically plug and play. Change some signs, paint some airplanes, buy some uniforms...voila!
The worst part about this scenario is how it affects contract negotiations for both groups. Right now, both management groups are enjoying a "yuuuuge" comparative advantage in labor savings over the competition. Do you think they want to give that up any time soon? Merge the airlines, and we're back to square one on negotiations plus mired in an SLI for a couple more years.