Originally Posted by
LoopsMcDoops
There's some real nonsense going on behind the scenes. An offer from JB that was a superior payout to the shareholders, with concessions in the event the deal fell through. Either way, NK/F9 or B6/NK merging would create the 5th largest airline. Their argument is the business model of JB is going to tank the deal with regulators as opposed to the ULCC? That's the only real difference. I see some major lawsuits being directed towards NK.
I think the NK/F9 deal has been in the works for years and both parties have interests in seeing it go through which may or may not benefit the shareholders.
At this point B6 is simply looking at them and asking the shareholders if they’re going to allow this to go on or not. There might be better returns over time with the super ULCC, but up front money might be more enticing as we enter another recession.
I don’t know if the B6 model can work at the scale they’re proposing. I also don’t know if the ULCC model
can work if they can’t attract crews to fuel their growth plans. Which they can’t.