Originally Posted by
ReserveCA
Lastly....
indigo is a holding company. They just happen to fly airplanes. Their whole livelihood is based on a spreadsheet, keeping it in the black. Why would they undergo a purchase of a larger company whose spreadsheet is completely in the red with no hopes of getting above board? where are they going to cut costs flight crew? cabin crew
? gate agents ? ramp crew? they're already running so short as it is above and below wing.
That's easy...
Indigo needs a couple of things - some more than others. Indigo needs gates. Spirit has a few. Indigo needs more pilots (that are not currently on a SL) that are trained. Spirit has a few of those as well. Lastly, Indigo needs size to compete. Whatever route redundancy (there is some of this) can be utilized for new markets and/or competing where the Big 3/SWA already go but for higher prices. Sometimes that's to El Paso, other times that's to San Francisco. Either way, Indigo stands to make that spreadsheet add rows w/ a purchase of the rights to some usable aircraft, gate space and more pilots than needed for the planes acquired.
Even if they end up paying 70% of value, it's still a bargain.
TBH, while the pilot contract is the most important concern for us, it's probably like their 3rd or 4th concern. I'm sure BB's like "Oh, the pilot contract? Yeah, yeah, we'll get to that. But right now this M&A stuff is hot right now..."