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-   -   Sprint/T-mobile Merger lead to JB Merger? (https://www.airlinepilotforums.com/jetblue/123054-sprint-t-mobile-merger-lead-jb-merger.html)

luv2fly4u 07-22-2019 10:06 AM

Sprint/T-mobile Merger lead to JB Merger?
 
Read today that DOJ is to possibly announce this week the approval of the Sprint/T-mobile merger:

https://www.bizjournals.com/kansasci...e-deal-by.html

Have also read several articles that if this were to happen that we could see one or two airline mergers announced this year.

Here is one that I most current articles I read:

https://www.bizjournals.com/seattle/...-approval.html


I know that there are tons of rumors and have scrolled through the forums about JB merging with another airline... but does anyone think that it could become a reality if this is approved?

Just curious of others thoughts.

Flyby1206 07-22-2019 11:18 AM

Yea, I posted over on BP about it too.

2018 wireless market share:
35% Verizon
34% AT&T
17% TMobile
12% Sprint

2018 airline market share (roughly):
18% AA
18% SWA
17% Delta
15% United
6% Alaska
6% JetBlue

Each industry has 4 companies controlling a vast majority of market share. If Tmobile/Sprint happens then that industry goes to 3 carriers controlling 98% market share. I don't think it would be unreasonable for that to set the stage for the airline sector to at least go to 4 airlines controlling 85% market share (Alaska and JB both being gobbled up by larger carriers).

Source:

https://www.statista.com/statistics/...subscriptions/

https://www.statista.com/statistics/...g-us-airlines/

Beacon32 07-22-2019 01:50 PM


Originally Posted by Flyby1206 (Post 2857323)
Yea, I posted over on BP about it too.

2018 wireless market share:
35% Verizon
34% AT&T
17% TMobile
12% Sprint

2018 airline market share (roughly):
18% AA
18% SWA
17% Delta
15% United
6% Alaska
6% JetBlue

Each industry has 4 companies controlling a vast majority of market share. If Tmobile/Sprint happens then that industry goes to 3 carriers controlling 98% market share. I don't think it would be unreasonable for that to set the stage for the airline sector to at least go to 4 airlines controlling 85% market share (Alaska and JB both being gobbled up by larger carriers).

Source:

https://www.statista.com/statistics/...subscriptions/

https://www.statista.com/statistics/...g-us-airlines/

Thx for the info, very interesting. Buffet said he wanted to see 4 carriers as well and usually the money men get what they want, so we shall see...

usmc-sgt 07-22-2019 02:06 PM

So...Jetblue and Sun Country?

CaptCoolHand 07-22-2019 02:28 PM


Originally Posted by usmc-sgt (Post 2857416)
So...Jetblue and Sun Country?

I hear Miami air.

Flyby1206 07-22-2019 02:57 PM


Originally Posted by Beacon32 (Post 2857408)
Thx for the info, very interesting. Buffet said he wanted to see 4 carriers as well and usually the money men get what they want, so we shall see...

Do you have a quote for Buffet saying he wants 4 carriers? He has significant investments in the Big 4, so it makes sense.

Beacon32 07-22-2019 03:56 PM


Originally Posted by Flyby1206 (Post 2857435)
Do you have a quote for Buffet saying he wants 4 carriers? He has significant investments in the Big 4, so it makes sense.

I read it a while back, It looks like it’s from Berkshire’s Vice Chairman, not Buffet, talking about historical railroad consolidation to four large railroads and how it relates to airline consolidation.

"It was a terrible business for about 80 years," Munger, 93, said at an event last week in Los Angeles. "But finally they got down to four big railroads and it was a better business. And something similar is happening in the airline business."

luv2fly4u 07-23-2019 04:58 AM

Thanks for the insight!

Flyby1206 07-23-2019 11:44 AM


Originally Posted by Beacon32 (Post 2857458)
I read it a while back, It looks like it’s from Berkshire’s Vice Chairman, not Buffet, talking about historical railroad consolidation to four large railroads and how it relates to airline consolidation.

"It was a terrible business for about 80 years," Munger, 93, said at an event last week in Los Angeles. "But finally they got down to four big railroads and it was a better business. And something similar is happening in the airline business."

Thanks for that. Railroads have been one of their favorite investments and to even mention them in the same sentence as airlines is pretty incredible. I’m sure Buffet/Munger know what the next wave of consolidation will already look like.

chrisreedrules 07-23-2019 04:31 PM

Someone will buy JetBlue and someone will buy Alaska? Is that what the article is getting at?


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