US/DL Slot Swap Approved
10-14-2011, 06:56 AM
#101
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Joined APC: Feb 2009
Position: right for a long, long time
Posts: 2,642
Originally Posted by Clear Right
Interesting article: What I glean from this article is B6 has the lowest Ex-Fuel CASM in the industry, the highest revenue growth in the industry with a superior customer service product and now one of the strongest airline brands. Oh, and by the way the most productive pilot group in the industry, that is compensated quite well. Currently 5th among all passenger airlines: http://web.mit.edu/airlinedata/www/2...0PERSONNEL.htm All of this while remaining 100% Non-Union. The most modern and fuel efficient fleet in the industry. Sounds to me like they are doing everything right over at JetBlue. Sounds like the SWA of not too long ago.
Why would the Board of Directors want to merge or fragment with the huge upside potential of JetBlue. All of this done during the worst economic times of the Airline Industry, imagine these numbers under a robust economy. Only way I see a B6 tie-up, while I agree they are a very attractive target is through some type of hostile takeover with a huge premium on their stock price. Don't forget that Lufthansa owns a large stake in the company and would like to keep it that way and they are very well financed.
Why would the Board of Directors want to merge or fragment with the huge upside potential of JetBlue. All of this done during the worst economic times of the Airline Industry, imagine these numbers under a robust economy. Only way I see a B6 tie-up, while I agree they are a very attractive target is through some type of hostile takeover with a huge premium on their stock price. Don't forget that Lufthansa owns a large stake in the company and would like to keep it that way and they are very well financed.
10-14-2011, 07:26 AM
#102
Gets Weekends Off
Joined APC: Jan 2008
Posts: 530
Originally Posted by shiznit
Ask the guys in my crashpad what they think of a "handbook" instead of a legal CBA. The ones on reserve get hosed regularly by scheds., bending the rules however they need to just to get "meat in a seat".
10-14-2011, 08:28 AM
#103
Moderator
Joined APC: Oct 2006
Position: B757/767
Posts: 13,088
Originally Posted by Clear Right
Interesting article: What I glean from this article is B6 has the lowest Ex-Fuel CASM in the industry, the highest revenue growth in the industry with a superior customer service product and now one of the strongest airline brands. Oh, and by the way the most productive pilot group in the industry, that is compensated quite well. Currently 5th among all passenger airlines. All of this while remaining 100% Non-Union. The most modern and fuel efficient fleet in the industry. Sounds to me like they are doing everything right over at JetBlue. Sounds like the SWA of not too long ago.
Why would the Board of Directors want to merge or fragment with the huge upside potential of JetBlue. All of this done during the worst economic times of the Airline Industry, imagine these numbers under a robust economy. Only way I see a B6 tie-up, while I agree they are a very attractive target is through some type of hostile takeover with a huge premium on their stock price. Don't forget that Lufthansa owns a large stake in the company and would like to keep it that way and they are very well financed.
Why would the Board of Directors want to merge or fragment with the huge upside potential of JetBlue. All of this done during the worst economic times of the Airline Industry, imagine these numbers under a robust economy. Only way I see a B6 tie-up, while I agree they are a very attractive target is through some type of hostile takeover with a huge premium on their stock price. Don't forget that Lufthansa owns a large stake in the company and would like to keep it that way and they are very well financed.
Just food for thought.
Last edited by johnso29; 10-14-2011 at 09:37 AM.
10-14-2011, 09:04 AM
#104
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,522
Originally Posted by johnso29
AirTran was also a low labor cost, money making, sucessful airline and they got hitched to SWA. Just because an airline is profitable and successful doesn't mean they aren't looking for a dance partner.
Just food for thought.
Just food for thought.
JB has a lot and has accomplished a lot. But CBA's get you a seat at the table during a merger, JD Power awards don't. JB is in the perfect position to be part of a deal in one way or another. AA, SWA, LCC and even DL would all want what JB has, all or in part.
10-14-2011, 09:20 AM
#105
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,584
If I were a big carrier (UA, DL, AA, US, WN) I would want to let jetblue run on their own until they reached their peak and couldnt grow/expand/take market share from competitors. Once they reach the top then the bidding war will begin. I still think B6 has a pretty good amount of growth ahead before we hit the top. That is when things will start to unfold in my opinion.
Airtran in ATL was a good example. They pretty much reached their max growth in ATL, and then SWA snatched them up.
B6 is at their max in JFK, but will stand to gain some ground in LGA/DCA with new slots that will come available. More growth in BOS (100 flights currently, heading towards 150) and a few more destinations in the Caribbean to reach.
Airtran in ATL was a good example. They pretty much reached their max growth in ATL, and then SWA snatched them up.
B6 is at their max in JFK, but will stand to gain some ground in LGA/DCA with new slots that will come available. More growth in BOS (100 flights currently, heading towards 150) and a few more destinations in the Caribbean to reach.
10-14-2011, 09:31 AM
#106
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,522
Originally Posted by Flyby1206
If I were a big carrier (UA, DL, AA, US, WN) I would want to let jetblue run on their own until they reached their peak and couldnt grow/expand/take market share from competitors. Once they reach the top then the bidding war will begin. I still think B6 has a pretty good amount of growth ahead before we hit the top. That is when things will start to unfold in my opinion.
Airtran in ATL was a good example. They pretty much reached their max growth in ATL, and then SWA snatched them up.
B6 is at their max in JFK, but will stand to gain some ground in LGA/DCA with new slots that will come available. More growth in BOS (100 flights currently, heading towards 150) and a few more destinations in the Caribbean to reach.
Airtran in ATL was a good example. They pretty much reached their max growth in ATL, and then SWA snatched them up.
B6 is at their max in JFK, but will stand to gain some ground in LGA/DCA with new slots that will come available. More growth in BOS (100 flights currently, heading towards 150) and a few more destinations in the Caribbean to reach.
If anything, JB's growing trend is more, not less, of a reason for an airline or airlines to make a move, perhaps together. The net additional capacity JB, SWA and VA (among others) have plans to bring on line will severely harm the entire industry if those hundreds upon hundreds of new narrowbody planes are added into the system without a corresponding amount of legacy pull down. Don't expect the trend of legacy stgnation/shrinkage and so called "LCC" growth to continue without a strong response from one or more legacy airlines (including SWA).
10-14-2011, 09:45 AM
#107
veut gagner à la loterie
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
I could see the justification for acquiring an airline once it has maxed out it's growth.
See, Airline 101 says: Merge then Shrink, Merge then Shrink, Merge then Shrink.
So you want to merge and shrink, not grow. So max out and then shrink from there, don't merge and be forced to grow, that's just crazy talk right there.
See, Airline 101 says: Merge then Shrink, Merge then Shrink, Merge then Shrink.
So you want to merge and shrink, not grow. So max out and then shrink from there, don't merge and be forced to grow, that's just crazy talk right there.
10-14-2011, 09:54 AM
#108
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,522
Originally Posted by forgot to bid
I could see the justification for acquiring an airline once it has maxed out it's growth.
See, Airline 101 says: Merge then Shrink, Merge then Shrink, Merge then Shrink.
So you want to merge and shrink, not grow. So max out and then shrink from there, don't merge and be forced to grow, that's just crazy talk right there.
See, Airline 101 says: Merge then Shrink, Merge then Shrink, Merge then Shrink.
So you want to merge and shrink, not grow. So max out and then shrink from there, don't merge and be forced to grow, that's just crazy talk right there.
And the synergies, awmaigawd the synergies!
10-14-2011, 09:54 AM
#109
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,584
Originally Posted by forgot to bid
I could see the justification for acquiring an airline once it has maxed out it's growth.
See, Airline 101 says: Merge then Shrink, Merge then Shrink, Merge then Shrink.
So you want to merge and shrink, not grow. So max out and then shrink from there, don't merge and be forced to grow, that's just crazy talk right there.
See, Airline 101 says: Merge then Shrink, Merge then Shrink, Merge then Shrink.
So you want to merge and shrink, not grow. So max out and then shrink from there, don't merge and be forced to grow, that's just crazy talk right there.
10-14-2011, 10:15 AM
#110
veut gagner à la loterie
Joined APC: Apr 2008
Position: Light Chop
Posts: 23,286
Originally Posted by Flyby1206
Forgot to throw a BK in there every few cycles!
That goes right along with the class: When to buy jets? A) Always if it's an RJ even if it has horrible CASM but it can be used to whipsaw employees, B) Only buy new when you want to go into BK soon, C) Buy used if you want to actually make money.
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