Sprint/T-mobile Merger lead to JB Merger?
07-22-2019, 10:06 AM
#1
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Joined APC: Mar 2017
Posts: 10
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.
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.
07-22-2019, 11:18 AM
#2
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,581
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/
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/
07-22-2019, 01:50 PM
#3
New Hire
Joined APC: Nov 2012
Posts: 9
Originally Posted by Flyby1206
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/
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/
07-22-2019, 02:57 PM
#6
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,581
Originally Posted by Beacon32
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...
07-22-2019, 03:56 PM
#7
New Hire
Joined APC: Nov 2012
Posts: 9
Originally Posted by Flyby1206
Do you have a quote for Buffet saying he wants 4 carriers? He has significant investments in the Big 4, so it makes sense.
"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."
07-23-2019, 11:44 AM
#9
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,581
Originally Posted by Beacon32
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."
"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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