I doubt think the DON will bail out a woke CO like B6. He will say “once you go woke you go broke”

 

Personally I don’t think Spirit will get the funds……. It smells more like trying to drum up more support through the private sector.

 

Polymarket bets giving it only a 45% chance of happening.

 

The US government already gave United almost $500 million in 2002. In addition to several billion to other legacy airlines throughout the 2000’s.

If anything it’d be unfair to refuse to give spirit money when all the legacy airlines got to cash their big checks.

 

You’re talking after 9-11, right? 9-11 and Covid, all airlines received cash. Government didn’t just pick and choose. This Spirit deal sets a bad precedent.

 

You should read about the 9/11ATSSSA. The government literally did pick and choose.

OMB Director Mitch Wilson created rules that benefitted “carriers whose survival was crucial to preserving the national aviation system” and some airlines like Spirit actually had their loan applications denied by the ATSB.
Other airlines like Frontier had terms set that actually made the government money over the following years. Meanwhile US Airways got $900 million and discharged it via BK and merger.

Additionally, the separate direct aid package was not equitable, the $5 billion earmarked for “direct aid” was available under two models. The direct losses for the four-day ground stop, or a compensation package based on August ASMs. Legacy Airlines were largely flying half-empty planes around, even before 9/11, and the August ASM model greatly benefitted low-yield carriers and punished the high-yield LCCs. The government literally gave the Legacy carriers extra money for seats that nobody was buying anyways.

 

Jetblue will be declared bankruptcy late this year or next. Will the government provide relative funding? Jetblue, Spirit, Frontier are all victims of their own management. The landscape changed to the big 3 between ‘08 and ‘13. The playing field has been set for over a decade.

jetblue was doing well and reinventing the industry and the industry adapted. Today, LCC’s and ULCC’s have failed to adapt and the big 3 continue to do so. When do the hand outs stop? Spirit has good people and one of the worst products in history? Can the collective state saving the flying octagon is good for the industry? 500 million delays Ch. 33 for spirit. At some point they have to charge prices that actually cover costs of operating.

 

A large reason B6 is in the position it is in is because of the mega mergers that make it impossible for smaller airlines to compete.

Heck we are beginning to see the cracks in AK armor now from their earnings and from the DB1B data we are starting to see DL gain ground in SEA.

While I’m not trying to absolve B6 management decisions over the years, it is disingenuous to say it is all their fault. The game is rigged.

 

It’s not all their fault? Remind me again when JetBlue last turned a quarterly profit.

 

2019.

Do you recognize the scale issue there is in the industry?

You are insinuating that post-COVID JB is the only airline to struggle.