Originally Posted by
Powderkeg
I don’t know what rumors you’re hearing on your side of the fence but...
It wouldn’t be a merger, it would be a Frontier buyout of Allegiant. Allegiant hasn’t proven they WANT to be in the airline business but it’s a part of their leisure business, for now. If it were up to me I’d trim the fat, convert to airbus, ditch the bad reputation with a charm offensive and sell it for whatever I could get for it. Sound familiar?
So let me ask you, what do YOU think of the idea? Do you know what “whipsaw” means? What about “amalgamation”? WTF!!!
With Allegiant’s market cap of 2.31 billion I highly doubt Frontier (Indigo Partners) would have an appetite to execute a buyout. Allegiant Air is now over 70% of where Allegiant Travel Company earns its profits from. So a spin-off of the airline portion would not come at a discount whatsoever. Allegiant is the 2nd most profitable airline by margin in the world and has been for years.
At most I see a merger.