Margaritaville

Maury has been bragging about opportunities for months. Do we go for one/both of the ULCCs, or wait for AA to collapse?

https://finance.yahoo.com/news/these...205740633.html

Excargodog

Spirit built a poison pill into their corporate bylaws about 6-8 months ago when stock prices were so low that everyone had tiny market caps. They are fairly well protected from a hostile takeover although I suppose a merger is always an option if terms are right.

Frontier is privately held so who knows? For the right price they might be on the block. AA might eventually go Chap 11 but probably not Chap 7. I see it consolidating around its core domestic business rather than collapsing.

Margaritaville

Spirit=merger?
Frontier=Buyout?
AA=Buyout?

Dougie got control of both US Air and American by hostile takeovers in bk if I'm not mistaken. Maury ain't no dummy, and he's got the dough.

ramalama

Its much cheaper to expand with the plethora of used airbusses on the market and let others bleed to death (if in fact that was the case, not saying it is).

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.

Texasbound

Start where Breeze is looking.

ElCaribe

Maybe Breeze is looking where G4 is..

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!

captnate702

Unfortunately, you are correct, there is no room to park the planes in Mesa, Sanford, Pie, or PGD. So where are we gonna park these used 320s that will inevitably be available? Probably in Des Moines, ABE, and all other crappy small towns that no one wants to live. That is bad for an LAS family man who isn't going to chase seniority and uproot the family to go to Des Moines. But, for those that are willing to chase seniority across the system, even if it means moving to ABE, DSM, GRR, etc. then you will see some FOs transitioning to CA very quickly.

We will certainly add more cheap aircraft, management has always been opportune when acquiring used aircraft. That means those planes gotta go somewhere, and that means more small bases. I'm sure wall street will like it because growth is growth, but it won't be good for anybody trying to move up the ladder in the established/senior bases.

skydisaster

Have you guys actually been to IWA? It is not full. We max out gate space in the peak of spring season, but not the rest of the year. We have 3 overflow spots that have only intermittently been used for aircraft storage at this point. We could increase capacity in IWA by 30% without making any changes, and the airport authority would let us build as much ramp space as we want.


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