Originally Posted by
BroncoFtbl
Respectfully, let's talk about some things.
1. Contracts: Allegiant's CBA was ratified in 2016, we've been in section 6 for going on 5 years. How exactly is comparing that to Sun Country's making sense? Are you uncertain of how merger's work? By the time any possible merger's ink is dry, we will likely have ratified a new CBA that will be significantly higher than what y'all have. I mean even anemic company proposals have been higher. With that said, it would increase the low water mark of JCBA talks. So remind me, how does that NOT benefit both groups? I mean honestly, we aren't eyeing your contract saying "wow that's the dream" we look at it and say, "that's exactly what we did in 2016, those guys got hosed."
2. Union: Uh yeah, Teamsters is g*d awful. You won't see a fight from this group to keep IBT on property. We're in the midst of an ALPA drive that still seems to be gaining steam.
3. Financial Health: We have a previous management group that spent d*mn near a billion on a hotel, our current management sold it for pennies on the dollar and paid off $300m in senior notes early. We're still making a profit... exactly how is that indicative of poor financial health? Allegiant shockingly stumbles into money despite their own efforts.
4. Merger Policy: Nearly every SLI in the last 30 years has been settled in arbitration, this would be no different I'm sure. That said, y'all likely have very established folks in MSP that have no desire to move, just the same as our pilots. That being said, I don't think MSP is exactly a top destination for anyone in recent years (and I say that as a proud gopher alum). Fences are a no brainer, both sides will have them.
With all that said, let's talk about some of the things that are good for both groups:
Minimal Overlap: Our networks are fundamentally identical with almost no overlap. Nobody is losing any flying and a larger sized airline can start to get more aggressive.
Diversified Revenue: We have a solid scheduled pax revenue stream. Sun Country seems to be making its dough in Charter/Freight. Both operations bring increased financial gains for the merged group.
Aggressive Growth: Consolidation is needed, Jude said it himself. Small niche airlines won't survive. Outside of Minnesota, Sun Country doesn't have the brand recognition to compete with a spirit, frontier, breeze. Somehow, allegiant seems to have an almost cultish following in most of the midwest, FL, and AZ. Don't ask me how or why, I don't know.
I get it, every carrier has their unhappy few. I think all of us would find a lot of common ground and could make a pretty bada$$ player in the LCC world. Let's be honest, neither of us are spirit or frontier. It's a fight for the segment southwest abandoned.
There you go, that's my incoherent contribution for the evening after 4 legs in the snow.