View Single Post
Old 11-21-2020, 08:41 PM
  #1480  
ElCaribe
Gets Weekends Off
 
Joined APC: Sep 2020
Posts: 407
Default

Originally Posted by Margaritaville View Post
I know you're joking, but the only way you are "merging" with Allegiant is if Indigo sells you to Allegiant. That's called an acquisition, not a merger. By the way, we are Teamsters, not ALPA.

Our stock price is currently $156, and the founder owns ~25% of it, so anyone hoping to buy us would have to come up with a huge premium above that already overvalued price. However, Allegiant has been wide open that they are flush with cash, and on the prowl for bargains. They made money all summer because of the CARES. Doubled their cash position. Now bragging they are cash neutral to slightly profitable.

I think if anything, they will make a play for American or its assets when they go bankrupt, and if that doesn't happen, try to buy out Frontier. Whether Frontier gets assimilated or dissolved in that situation, nobody could guess.

Or, the most likely option, Allegiant will continue to ignore all competition and industry norms, and continue to run their rusty 20 year old playbook of flying big planes to places nobody lives at , and still filling them up. Either way, it's very unlikely anyone is merging with or buying Allegiant.

Back to the topic, I wouldn't be surprised to see Frontier wade into already saturated markets like TPA/PIE, RSW/PGD, or PHX/IWA that we already serve. It kind of seems to be their thing to eat the leftovers.
Yeah, they’re not buying any part of AA or any major airline for that matter. ALGT doesn’t have that much cash. There’s a reason they’re flying clapped out old airplanes and Public bus fare ticket prices. It works and makes money, but they’re not near big enough to try and compete with the other carriers outside there niche market.
ElCaribe is offline