Thread: Merger question
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Old 10-06-2019 | 08:50 PM
  #48  
O2pilot
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Originally Posted by Flyby1206
It would mean a complete business model change to keep the JetBlue structure in SW operations. Overnight redeyes, first class, premium economy, multiple fleets (A320, A220, E190), assigned seating, bag fees, etc etc.

I don't think it would be worth it to SW to buy JB and change everything to the SW model. Put another way, the reason JB would be worth $X billion dollars is because of a lot of stuff SW wouldn't want to keep around anyway.
SW/JB would make no sense.

Delta or United could buy JB, but it would be better for a purchaser to wait. In 2015 JB had a market value of $8.4B and today its $4.8B. The trend is down, so maybe 1-3 years from now when JB is more affordable someone would buy them. Fragmentation is highly likely with a JB sale, because of the concentration of NY assets, which DL, UA, and AA all have huge bases there.
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