Spirit and Frontier… just the beginning
02-22-2022 | 01:39 PM
#291
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,931
Likes: 699
From: Engines Turn or People Swim
Probably more about who would still have a great executive job, and in which town. Only natural, if you could veto an M&A because it would close your hometown domicile you can't deny you that would. Unless they paid you enough to retire immediately.
02-22-2022 | 01:43 PM
#292
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,931
Likes: 699
From: Engines Turn or People Swim
B&B might have been very good at running a fiscally conservative hometown airline. Maybe the board didn't think they were the right people to auction off their own baby.
02-22-2022 | 02:10 PM
#293
On Reserve
Joined: Apr 2018
Posts: 62
Likes: 0
I am confident HA was the direction AS Executives wished to go. Sounds like the board decided to explore other options. My understanding is AS needs to have us under a long term contract per conditional agreement. AS management needs a contract they can live with though just in case the DOJ shoots this down. I guess 2,500 737 typed airmen is kinda valuable right now.
02-22-2022 | 02:13 PM
#294
On Reserve
Joined: Apr 2018
Posts: 62
Likes: 0
Didn't the executives restructure their golden parachutes? That might be enough to retire immediately.
02-22-2022 | 02:18 PM
#295
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,931
Likes: 699
From: Engines Turn or People Swim
That actually makes sense. B&B would prefer to M&A with a modest bite-size chunk, and then have years of freedom while executing such an acquisition (lots of airbuses, and widebody market is soft right now). Possibly to end up right back where they started, minus the acquisition price but still employed.
Board might have wanted to cash out on behalf of shareholders. That's what they *should* want to do, assuming they're not captive to the management team (I used to think they were, not so sure now).
Board might have wanted to cash out on behalf of shareholders. That's what they *should* want to do, assuming they're not captive to the management team (I used to think they were, not so sure now).
02-22-2022 | 03:00 PM
#299
Banned
Joined: May 2018
Posts: 1,241
Likes: 0
I think SK and UAL may actually play the most significant role in our independence over the next few months. SWA is tight and SK has shown himself to be super aggressive with access to significant liquidity. I think this will churn for a bit. As the legacy airlines gain visibility of Q3, hammers are likely to drop.
02-22-2022 | 03:00 PM
#300
Line Holder
Joined: Jul 2017
Posts: 579
Likes: 30
In which case there would be no chance that the name Alaska Airlines would be the surviving name, perhaps he didn’t want to be associated with the end of the brand.
