Can we buy Spirit's Airbus delivery slots ?
 

Even if this acquisition is not going down as planned - can we purchase the future NK delevieries ? Is there any talk of doing that , so we can grow organically ?
I am new here, question for guys that were here pre-covid - what was the company's plan to grow back then ?

One plane, two pilots, one route. STI be that route.

Im not 100% sure airlines can buy/sell aircraft delivery slots from each other, but I am sure if NK was serious about heading towards BK then Airbus would be more than happy to swap out those delivery slots with someone else. I believe Airbus would be in control of that though

This article just came out:

https://finance.yahoo.com/news/spirit-airlines-drops-further-jetblue-131724161.html

Now that the 321LR has proven its range it is time to use it as intended. STI-SDQ hourly shuttle flights. Operating 2200-0500 only.

Buy Virgin America. That didn't work out either...

https://www.bloomberg.com/news/artic...-takeover-bids

Dump the 190 fleet. Upgauge with the 220.
TATL with the LR.
BOS 200.
Turn FLL into a connecting hub between the USA and the Caribbean and Latin America.
​​​​​LAX and MCO growth at lower levels, but at some point in time once higher priorities were accomplished.

That's all I remember from the olden days.

Robin said they would be seriously considering 330s if the merger didnt happen. He laid out a very viable strategy involving swapping them amongst different routes in the summer vs the winter.

Of course they have been dangling widebody vaporware since 2005 so take it with a huge grain of salt.

Robin is gone friend. With him his plans go with him.

I fixed that for you.

Well supposedly he's staying on as an advisor, and I would imagine those plans still make sense, but yeah, not getting my hopes up. Junior pilot attrition is gonna be eye-watering unless they do something though.

Everything Joanna has touched in this company has turned to *******, and now she has the whole thing. I've been here a while and even I'm looking at my resume.

If the merger is dead, this company better have been smart enough to sign a contingent order with Airbus for more jets. Our current order book doesn't have many years left on it, and there will be more A320 retirements. Can't grow organically without jets.

Dancing on our graves, lol. lovely

Not even close. Not sure why you would say that.

..........E2s!

David Puddy will be along shortly to set you straight

Porter seems to be doing good with them, See them all the time in MCO from YYZ and I think Montreal.

Good looking jet now that I see it in person..thing is sleek with the long wing with raked tips instead of winglets and sitting low on trailing links.

The merger will be overturned by the appeals court
by July

Won't be done by then, the DOJ (according to Court Listener) just asked for another 21 days to respond.... This will drag out and unless I'm mistaken, I don't think the July Expiration is "frozen" if in Appeal...

https://www.courtlistener.com/docket...&order_by=desc

[QUOTE=Chimpy;3758848]Won't be done by then, the DOJ (according to Court Listener) just asked for another 21 days to respond.... This will drag out and unless I'm mistaken, I don't think the July Expiration is "frozen" if in Appeal...

https://www.courtlistener.com/docket...&order_by=desc[/QUOTE
…………

Not that the appeal won't be delayed by another issue, but this 21 day was a request for the plaintiffs to delay their request for legal fee reimbursement if they win the appeal.

https://twitter.com/specialsitsnews/...tgF46XgscpVfQQ

"JetBlue warns Spirit may be terminable after January 28th"




https://d18rn0p25nwr6d.cloudfront.net/CIK-0001158463/a9ed09ea-fad4-40c2-8a50-c23a73409168.pdf

the current deal. Probably want out of this one so they can offer a new one. Opens it up to Frontier again.

My thoughts/hopes as well. Good move either way

I don't think they want a new deal, probably better terms on this current deal.

If they cancel this deal, the process probably starts over from square one. DOJ sues to block the new deal, full new court case.

Renegotiate this current deal, can be heard soon by the appeals court.

Or they really want to walk.

Im no legal or business expert….. but the problem with the first deal going through had nothing to do with the low low price JB was offering. Just sayin

if I'm B6 I wait now for Spirits demise and just buy some assets, like planes and gates. Cheaper

Unfortunately, I agree.

that was the strategy with Virgin America. guess what happened.

Yes. Because B6 wil be the only ones in the industry interested in those assets.

there will be a global bidding war for the planes. Not sure B6 has the means to make it happen.

But I’m sure Schumer will intervene again and get B6 a sweetheart deal in routes and gates.

Airbus would pay big money for Spirit to sell back contracts. Airbus knows they can come out big against the Max 10 issues. Airbus has even said they hope to find airlines and creditors to sell back orders. Airbus wants a bigger piece of United. JB will only end up with Spirit orders if they somehow pull a rabbit out a hairy hole via this deal, or some modified deal. JB will not win some kind of win fall if Spirit goes under, they will be hurt by it. The big 3 will become stronger.

And get some of their pilots...

"JetBlue’s move is aimed at either forcing a termination of the deal or restructuring it at a new purchase price", said Steve Segal, M&A attorney at business law firm Buchalter.

"Segal said mounting concerns about Spirit’s finances and its future might be deemed to constitute a “material adverse effect,” offering JetBlue a legal argument to call off the deal without triggering the July extension."

Likely a new price or walk away...guessing the former.

It was a horrible deal to begin with, better than the alternative I guess.

Saw that article, what a bunch of garbage.

I mean, if you were running things at Airbus, even as a Chief Financial Officer, what would you do? The business sees an opportunity to make more money. Naturally, they will take that route. We wouldn't like it only because it doesn't benefit us.

Unless you're saying how the article is written is garbage, then disregard lol.

Additionally if NK needs to raise cash and doesn’t plan on taking all the planned deliveries then why not sell slots back to Airbus for a profit and help the balance sheet? Makes a lot of sense. The downside is that would likely trigger the MAE clause in the merger agreement (if the agreement is still valid)

I think the feds should step in and block Airbus from being allowed to sell Boeing aircraft that were acquired from purchasing back delivery slots from other airlines/operators. It's clearly anti-competitive because it gives the big airlines like United a chance to further reduce competion with smaller airlines, and it puts smaller airlines at a disadvantage because they're now being hampered even more from getting promised aircraft. If United in this case is allowed to accelerate their aircraft deliveries due to reservatoin buy outs, then the feds should block United from operating those aircraft until smaller airlines get a chance to get their own aircraft. All in fairness afterall.

LCC/non-legacy airlines, this one's for you

Say what?

its not like Airbus can force airlines to give up delivery slots. Those airlines would be doing it willingly for whatever reason.

Circling back to this, Airbus took an order from an undisclosed customer in late December. An order for 132 A321NEO, 12 A320NEO and 10 A220-300.

I believe this is a JetBlue order, most likely. Was made after the court case was finished, but before the ruling. Order was likely written as contingent, or JB had been tipped early which way the ruling was going to go. If this is a JB order, it's more likely that JB terminates the merger agreement.

Credit goes to FlyBy for making me aware of the Airbus order, I just did some digging on the specifics and make the argument that it is likely JB's

https://www.airbus.com/en/products-services/commercial-aircraft/market/orders-and-deliveries

If you click on the 2023 orders and look at Dec 21-22.

Wow that's a huge order! Seems awfully big for a JB don't ya think? Guess we may find out tomorrow (earnings call).

No, it's about the right size. We also have many old A320s that will be retiring, so that order in total might be as much as half replacement, give or take.

They wouldn't announce the aircraft order tomorrow, unless or until they announce the termination of the merger agreement.