Allegiant, Frontier, Spirit merger?

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01-07-2021, 07:20 PM

#11

9mikemike

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Joined APC: Nov 2019

Posts: 791

Allegiant got its start with a fleet of used MD-80’s from Alaska Airlines. We have an even bigger fleet of used but well maintained A-320’s that we are desperate to get rid of and 10 fairly new ETOPS A321NEO’s for sale as well...Could be Allegiant’s next big growth spurt...

01-08-2021, 05:59 AM

#12

Margaritaville

It's 5 o'clock somewhere

Thread Starter

Joined APC: Oct 2020

Posts: 1,846

Quote:

Originally Posted by ramalama

So by your logic the only way to grow is to pay a premium to buy someone else’s problems? Or, now go with me here, you buy cheap used airbusses and expand. I know its hard to fathom but they can expand into new markets that the so called buyup airline was flying to.

For an airline who is quickly getting up to 1 billion in the bank, I don’t think they are doing to badly!

Okay, but where will we fly these new jets? DSM-TRI? TYS-FAR? ABE-GRI? And we're going to fill planes on those routes? Have another drink of Maury's spiked koolaid pal.

Buying a competitor eliminates a competitor, and Maury hates competition. Buying a large airline brings large planes and international ops. Seems to make more sense than more flights to North Dakota.

01-08-2021, 12:37 PM

#13

ramalama

Line Holder

Joined APC: Jan 2017

Posts: 99

Quote:

Originally Posted by Margaritaville

You do you pal. I’ve been around enough to know what works and what doesn't IMHO.

01-08-2021, 12:51 PM

#14

labbats

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Joined APC: Jun 2006

Position: A320

Posts: 1,347

Is it time for a merger rumor already? Dang I’ll have to update my calendar.

01-08-2021, 06:45 PM

#15

Excargodog

Perennial Reserve

Joined APC: Jan 2018

Posts: 11,482

Quote:

Originally Posted by 9mikemike

the voice of experience talking...

01-09-2021, 04:09 PM

#16

TrojanCMH

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Joined APC: Jan 2009

Posts: 1,269

Quote:

Originally Posted by Margaritaville

Expand where? Are there any more podunk places in flyover states where people are looking for a cheap fare to Florida/Vegas/Arizona? I mean I guess they could throw a few more darts at the square states and find an airport near them. Where would we park the new planes? Florida and IWA are full. They could put maybe 1 more jet in some of the small bases. I'm not seeing a big expansion. They bunged up the Mexico thing, now that market has been flooded buy the other LCCs and G4 doesn't like to compete. I think we have hit the cap of organic growth. If they don't come up with a new plan or a M&A, we are going to see our business keep getting eroded at the edges by our competitors. Let's not forget that since international will be dead for a few years, our competitors include the legacies on domestic routes.

Isn’t Allegiant’s whole business model based around flying cheaply acquired planes to small underserved markets? Why would they just throw their whole business plan, which has been working pretty well for them, in the trash?

Also where would they get the money for a buyout, most of those airlines you listed have more cash on hand than Allegiant.

01-11-2021, 08:17 AM

#17

captnate702

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Joined APC: Aug 2020

Position: A320 CA

Posts: 647

Quote:

Originally Posted by Margaritaville

I'm sure management will find some non-competitive routes to fly 2-4 times per week like the rest of our network. I know you think Maury is nuts, and i am not fan of his, but Wall Street seems to love what he is doing because our market cap is over $3b this morning and NK is sitting $2.3b despite NK having way more planes on hand and way more planes on order. They are a significantly larger airline than ours by traditional metrics (ASMs, etc.) yet here we are with a ~30% larger market cap and significantly more valuable stock.

Maury always does what is in the best interest of the shareholders because he is the largest shareholder...