Spirit/Frontier Merger (Again)
04-15-2025 | 02:42 PM
#361
Line Holder
Joined: Oct 2022
Posts: 27
Likes: 0
Spirit sold the planes because the operation was bleeding cash. It bought them 3 or 4 months of cash burn, but didn't change the outcome. Also it wasn't US carriers taking those planes, so obviously no US carrier needed them. Everyone is either not taking planes (deferred until 2030 etc) or already has deliveries of planes to suit their growth plans. IF Frontier didn't take the 30 "perfectly good planes" they don't really want or need the rest of the operation either.
Spirit also likely doesn't have an "enterprise value". The problem is that any other airline would have to foot the ongoing losses while most of the carriers that would acquire Spirit are already losing money. There are certainly some assets worth buying (mostly gate space) but even integrating the planes is costly and not worth it. It would take a couple years to fully integrate the operations and unless a purchaser has $1B of extra cash they don't need there aren't going to be any wholesale purchases.
If there was going to be an acquisition we would have seen it already.
Spirit also likely doesn't have an "enterprise value". The problem is that any other airline would have to foot the ongoing losses while most of the carriers that would acquire Spirit are already losing money. There are certainly some assets worth buying (mostly gate space) but even integrating the planes is costly and not worth it. It would take a couple years to fully integrate the operations and unless a purchaser has $1B of extra cash they don't need there aren't going to be any wholesale purchases.
If there was going to be an acquisition we would have seen it already.
04-18-2025 | 06:27 AM
#363
Line Holder
Joined: Feb 2024
Posts: 203
Likes: 18
I have no idea. I don’t know why bond holders are so against the idea of a combined company.
I also don’t see how both companies can survive in a time of recession. There’s just not enough capacity to support two carriers competing on the low end of the market. Time will tell, and I believe by the end of summer/reporting Q2 we will have a better picture on how both carriers are doing. I’ll be curious to see what frontiers guidance will be on the upcoming earnings call on the 1st
I also don’t see how both companies can survive in a time of recession. There’s just not enough capacity to support two carriers competing on the low end of the market. Time will tell, and I believe by the end of summer/reporting Q2 we will have a better picture on how both carriers are doing. I’ll be curious to see what frontiers guidance will be on the upcoming earnings call on the 1st
04-23-2025 | 10:11 AM
#364
Line Holder
Joined: Jun 2021
Posts: 1,375
Likes: 115
From: Joystick Operator
Lastest Airlines Confidential podcast had some info....
"The CEO thats being brought in is there as a caretaker to get this to a merger with Frontier and that is probably the best strategic move for Spirit"
"They are going to make Spirit look as much like Frontier as possible so it can merge at some point"
"And that merged airline is going to be run by Barry Biffle, not by anybody else"
"The CEO thats being brought in is there as a caretaker to get this to a merger with Frontier and that is probably the best strategic move for Spirit"
"They are going to make Spirit look as much like Frontier as possible so it can merge at some point"
"And that merged airline is going to be run by Barry Biffle, not by anybody else"
04-24-2025 | 04:13 AM
#366
Line Holder
Joined: Dec 2022
Posts: 1,372
Likes: 141
Lastest Airlines Confidential podcast had some info....
"The CEO thats being brought in is there as a caretaker to get this to a merger with Frontier and that is probably the best strategic move for Spirit"
"They are going to make Spirit look as much like Frontier as possible so it can merge at some point"
"And that merged airline is going to be run by Barry Biffle, not by anybody else"
"The CEO thats being brought in is there as a caretaker to get this to a merger with Frontier and that is probably the best strategic move for Spirit"
"They are going to make Spirit look as much like Frontier as possible so it can merge at some point"
"And that merged airline is going to be run by Barry Biffle, not by anybody else"
04-24-2025 | 05:43 AM
#367
Banned
Joined: Jul 2023
Posts: 633
Likes: 32
Maybe bc he wanted to be CEO of the combined company? He lost control of the company in bankruptcy, the bond holders brought in their new board, and that new board brought in their hand picked guy. Ted was not their guy. This CEO is a transition CEO. Saw the same crap at XJT before the ASA merger. Silent Dave is here to sell us to Frontier and that is it.
04-24-2025 | 06:07 AM
#368
FO For Life
Joined: Jan 2024
Posts: 327
Likes: 0
A combined airline needs vision of a new way forward, not just a crappy airline that suddenly got bigger overnight.
04-24-2025 | 07:55 AM
#369
Almost there
Joined: Apr 2021
Posts: 2,004
Likes: 137
This to me seems like pure insanity. BB can’t get the company to grow organically, he couldn’t close a merger deal several times, we lose money more often than we make money (at least on paper) and he is the #1 choice for CEO of a combined airline???
A combined airline needs vision of a new way forward, not just a crappy airline that suddenly got bigger overnight.
A combined airline needs vision of a new way forward, not just a crappy airline that suddenly got bigger overnight.
04-24-2025 | 09:37 AM
#370
Gets Weekends Off
Joined: Nov 2012
Posts: 3,758
Likes: 106
From: 1900D CA
This to me seems like pure insanity. BB can’t get the company to grow organically, he couldn’t close a merger deal several times, we lose money more often than we make money (at least on paper) and he is the #1 choice for CEO of a combined airline???
A combined airline needs vision of a new way forward, not just a crappy airline that suddenly got bigger overnight.
A combined airline needs vision of a new way forward, not just a crappy airline that suddenly got bigger overnight.
But I think the point that he's making is that it's going to be Biff running the show, not necessarily that he's the best option. Inevitable, but not necessarily good.
Thread
Thread Starter
Forum
Replies
Last Post
