Article: Allegiant Frontier Spirit to Merge?
 

This should be fun. But probably just more BS from the same media that had to let us know 777s can't fly without fuel.

“You can see Allegiant, Frontier and Spirit merge. Those three airlines have a 3% market share, maybe a little more now since they are so domestic. They would be a really terrific competitor to the Big Four because they are so low cost and their so domestic and leisure focused.”

https://finance.yahoo.com/news/these...205740633.html

I think a wave of consolidation will occur over the next 5 years. Always does after mega events. Not much can be done about it by us other than to buckle up for the ride.

How would UA buy B6? Airlines won't return to crazy profit numbers for a while
However merge is a different issue

It can be done as a merger, vice an acquisition. Both parties have to agree, unless one party can manage a hostile takeover which would require low market cap on one end, and lots of cash (or borrowing power) on the other.

Helene Becker has a very good knowledge of the industry. She knows all the players. If she says some M&A activity is likely then I’ll give her benefit of the doubt. I’ve been a Firm believer a marriage between us and F9 is all but certain. Time will tell. But I can’t see how the industry doesn’t have some sort of major changes. I prefer Organic growth but they don’t ask me.

Allegiant’s business model and ergo stock price confidence are built around their current business model of serving secondary and tertiary vacation-leisure markets with little to no competition. Not saying they can’t or don’t want to grow beyond that, however anything else is uncharted competitive territory.

I’d put money on F9 and NK combining at some point. Allegiant has such a different model I’d be shocked if they were a part of that.

Agreed.

Allegiant runs a completely different business model.

Frontier and spirit are identical except for the paint color

and contracts, those aren’t identical, Spirits is better.

It would be a lot easier to iron out the differences between Frontier and Spirit, compared to either of them and Allegiant.