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Old 07-22-2019, 10:06 AM   #1  
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Default 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.
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Old 07-22-2019, 11:18 AM   #2  
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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/
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Old 07-22-2019, 01:50 PM   #3  
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Originally Posted by Flyby1206 View Post
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...
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Old 07-22-2019, 02:06 PM   #4  
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So...Jetblue and Sun Country?
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Old 07-22-2019, 02:28 PM   #5  
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So...Jetblue and Sun Country?
I hear Miami air.
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Old 07-22-2019, 02:57 PM   #6  
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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.
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Old 07-22-2019, 03:56 PM   #7  
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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."
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Old 07-23-2019, 04:58 AM   #8  
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Thanks for the insight!
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Old 07-23-2019, 11:44 AM   #9  
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Originally Posted by Beacon32 View Post
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.
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Old 07-23-2019, 04:31 PM   #10  
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Someone will buy JetBlue and someone will buy Alaska? Is that what the article is getting at?
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