Originally Posted by
CincoDeMayo
It really doesn’t. If an airline buys NK, they have to continue to fund the massive losses while trying to integrate the NK product to the new product. That “trained and proficient staff” would all need to be retrained before flying on the new certificate; all costing money and time. Every plane would need to have over a million spent on each plane and time to retrofit it while making lease payments on it. Oh…and the Pratt issue is still there. The only gate/airport is real value are LGA slots. It’s not like you buy NK and that purchase starts to make money anytime soon.
It’s millions and millions of dollars plus literal billions of debt.
Management doesn't care about that. It's all about the merger bonuses and sweet stock option awards for the new managers. There's been worse mergers out there like AOL and Verizon. They still go through because management sees the juicy bonuses and the investment bankers see the fat fees. I bet AA will be interested, because it fits their low cost provider business model and they fly the Airbus.and AA loves debt, even to the detriment of it's shareholders.