Originally Posted by
DirkDiggler9999
The $100M question is who wants to buy NK? There are no offers on the table and routes where NK has left are being filled by competitors. Money is tight throughout the industry. Many airlines would rather hire new pilots at cheaper prices and wait for airplanes at better terms. I’m having a hard time finding a good reason for another airline to buy NK. NK can survive on its own but it’s going to take some hard hits to make that happen.
Well, you're looking at the positive side of the question (from the buyer who would get assets without the bad debt that comes with it)..
The counter point would be there's a set of airlines that will realize they won't be the winning bidder for the assets.. if you want certain planes from Spirit, or maybe pilots, or gates, or slots in Newark, or whatever you have your eyes on.. if you realize your best bid will *not* win for the assets you want.. it creates incentives among those non-winners to try to outmaneuver the competition that will beat them at the bid..
Of course the catch there is, if you buy Spirit whole to get in front of bidders who would beat you at liquidation auction, you'd have to be big enough to handle the debt that comes with that play.