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JetBlue bids for Spirit Airlines

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JetBlue bids for Spirit Airlines

Old 04-05-2022, 12:21 PM
  #21  
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Originally Posted by WHACKMASTER View Post
Would you guys hurry up and merge already so SWA can buy the newly combined airline?

(I keeeeeed) 😜
lmao-
So you're sayin there's a chance?
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Old 04-05-2022, 12:23 PM
  #22  
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So much for most leg room in coach….
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Old 04-05-2022, 12:28 PM
  #23  
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For those w/o NYT sub

JetBlue bids for Spirit Airlines, potentially spoiling Spirit’s merger with Frontier.

By Lauren Hirsch, Anupreeta Das and Niraj Chokshi
  • April 5, 2022, 3:37 p.m. ET
JetBlue Airways has made an offer to acquire Spirit Airlines for roughly $3.6 billion, three people with knowledge of the matter said, throwing a wrench into Spirit’s plan to merge with Frontier Airlines.

Spirit and Frontier, two budget carriers that largely operate domestically, had agreed to merge in early February in a deal the companies said would bring about $1 billion in annual savings for consumers. JetBlue has offered $33 a share in cash, one of the people said. That price is a roughly 40 percent premium to Frontier’s cash and share offer for Spirit, which has an implied value of about $23 a share at current prices.

Shares of Frontier have fallen by more than 10 percent since shortly before the two airlines announced the deal, reducing the value of its original offer. The board of Spirit has not made a decision yet on which deal to pursue, one of the people said, but plans to review JetBlue’s bid thoroughly.

Spirit and Frontier have said that by merging, they would make the aviation industry more competitive. The combined entity would become the nation’s fifth-largest airline by market share, making it a stronger competitor to the four biggest airlines, which control about two-thirds of the domestic market, they said. JetBlue is the sixth-largest airline in the United States.
A merger of Spirit and Frontier makes sense given their overlapping business models and different regional strengths, industry analysts say. Both were shaped by Indigo Partners, a private equity firm that invests in what are known as “ultra low-cost carriers” — airlines that are sharply focused on the bottom line — and has been involved with both carriers.

But a combination of Spirit and JetBlue is less of a clear fit. Both airlines are heavily concentrated in the Eastern United States. Spirit keeps costs and fares low by charging extra for everything from carry-on bags to seat selection. JetBlue, by contrast, offers more premium options and provides free in-flight perks such as name-brand snacks and wireless access.
  • Dig deeper into the moment.
Special offer: Subscribe for $1 a week.Either deal could face scrutiny from the Biden administration, which has taken a tougher stance on mergers. Last month, several progressive lawmakers expressed misgivings about the proposed merger between Spirit and Frontier. Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont were among those who warned that the deal, if it went through, could raise ticket prices and lower customer service.

JetBlue has been subject to its own antitrust scrutiny. Last year, the Justice Department sued to prevent JetBlue from forming a domestic alliance with American Airlines, arguing that the agreement would drive up prices and reduce competition. The airlines rejected the lawsuit’s premise, contending that their partnership would in fact help increase competition against Delta Air Lines and United Airlines and in New York airports.
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Old 04-05-2022, 12:32 PM
  #24  
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We’re gonna eBay them again!
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Old 04-05-2022, 12:34 PM
  #25  
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Originally Posted by Flyby1206 View Post
We’re gonna eBay them again!
I don't see Indigo letting this offer be the last word.
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Old 04-05-2022, 12:34 PM
  #26  
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Originally Posted by Bluedriver View Post
I don't see Indigo letting this offer be the last word.
Deep pockets for sure.
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Old 04-05-2022, 12:40 PM
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Originally Posted by Bluedriver View Post
I don't see Indigo letting this offer be the last word.

Maybe but one article I read said that JB offered 40% more. I don’t see Frontier matching that, but then again who knows….


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Old 04-05-2022, 12:50 PM
  #28  
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Originally Posted by Bluedriver View Post
I don't see Indigo letting this offer be the last word.
It’s going to be interesting. We are now in Alaska’s shoes with the VA deal. If we let Indigo get a foothold on the east coast then that could hurt us longer term (think about Indigo portfolio of airlines and TATL/Deep South possibilities).
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Old 04-05-2022, 12:52 PM
  #29  
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How big is yalllls Newark Base. 2013 hire at Yellow and think I’m not going to like this at all. FML. Only thing worse is If SWA comes in and AirTrans either of us
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Old 04-05-2022, 12:57 PM
  #30  
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Where is pilotpayne. I think I have to give him cred for predicting this a couple years ago.
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