Future of Jetblue?
07-12-2012, 04:10 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: May 2012
Posts: 1,099
Future of Jetblue?
Just copied this from another board.
We're ****ed boys and girls ifs it's true.
The airline industry is awaiting another major consolidation. American Airlines, a subsidiary of AMR Corp. (AAMRQ) is evaluating its merger proposal with the fifth largest U.S. airline US Airways Group Inc. (LCC).
Now, according to Reuters, four other candidates - JetBlue Airways Corp. (JBLU), Alaska Air Group (ALK), Frontier Airlines, a subsidiary of Republic Airways Holdings (RJET) and a privately held Virgin America have expressed interest to be the merger partner.
After seven months into bankruptcy restructuring, the third largest U.S. air carrier has improved its revenue and reduced costs to a certain extent. The company is progressing well with the labor union negotiations aimed at generating more than $1 billion in annual cost reductions.
Now, American Airlines together with its creditors will carefully review all the strategic alternatives that could make the airline even stronger. The team would evaluate synergies, costs, and tax and capital structure that would be generated from each merger.
JetBlue and Alaska have wide networks on the East and West Coast, respectively. The merger with these two carriers do not appear lucrative as American Airlines already has partnerships with them, providing services in cities like New York and Los Angeles. *
American Airlines could get a strong foothold in Denver by merging with Frontier. However, United and Southwest already have a strong presence in the city, which is not large enough to support the three major airlines. The next alternative, Virgin America is struggling with losses and has a huge debt in its balance sheet. As result, American Airlines may scrap this option altogether.* *
So, we see American Airlines-US Airways as the hottest pair in the industry as it will be in the best interest of the customers. Two months ago, the three labor unions of American Airlines supported a merger with US Airways.
The combination would be strong enough in scope and size to compete with their larger rivals, United Continental Holdings Inc. (UAL) and Delta Airlines Inc. (DAL). In fact, the combination would create an airline identical to the largest U.S. air carrier, United Continental, in terms of revenue and traffic, and would be better than the second largest airline, Delta.
This is an opportune moment for American Airlines to regain its lost profits and operational efficiency. As United and Delta will be long-term beneficiaries following the merger actions on both capacity and cost fronts, we believe American Airlines will also emerge as a successful candidate by balancing its debt level and lowering costs.
American Airlines currently has a Zacks #2 (Buy) Rank for the short term (1–3 months).
Read the Full Research Report on RJET
Read the Full Research Report on LCC
Read the Full Research Report on JBLU
Read the Full Research Report on DAL
Read the Full Research Report on UAL
Read the Full Research Report on AAMRQ
Read the Full Research Report on ALK
Zacks Investment Research
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Read the analyst report on RJET,LCC,JBLU,DAL,UAL,AAMRQ,ALK
We're ****ed boys and girls ifs it's true.
The airline industry is awaiting another major consolidation. American Airlines, a subsidiary of AMR Corp. (AAMRQ) is evaluating its merger proposal with the fifth largest U.S. airline US Airways Group Inc. (LCC).
Now, according to Reuters, four other candidates - JetBlue Airways Corp. (JBLU), Alaska Air Group (ALK), Frontier Airlines, a subsidiary of Republic Airways Holdings (RJET) and a privately held Virgin America have expressed interest to be the merger partner.
After seven months into bankruptcy restructuring, the third largest U.S. air carrier has improved its revenue and reduced costs to a certain extent. The company is progressing well with the labor union negotiations aimed at generating more than $1 billion in annual cost reductions.
Now, American Airlines together with its creditors will carefully review all the strategic alternatives that could make the airline even stronger. The team would evaluate synergies, costs, and tax and capital structure that would be generated from each merger.
JetBlue and Alaska have wide networks on the East and West Coast, respectively. The merger with these two carriers do not appear lucrative as American Airlines already has partnerships with them, providing services in cities like New York and Los Angeles. *
American Airlines could get a strong foothold in Denver by merging with Frontier. However, United and Southwest already have a strong presence in the city, which is not large enough to support the three major airlines. The next alternative, Virgin America is struggling with losses and has a huge debt in its balance sheet. As result, American Airlines may scrap this option altogether.* *
So, we see American Airlines-US Airways as the hottest pair in the industry as it will be in the best interest of the customers. Two months ago, the three labor unions of American Airlines supported a merger with US Airways.
The combination would be strong enough in scope and size to compete with their larger rivals, United Continental Holdings Inc. (UAL) and Delta Airlines Inc. (DAL). In fact, the combination would create an airline identical to the largest U.S. air carrier, United Continental, in terms of revenue and traffic, and would be better than the second largest airline, Delta.
This is an opportune moment for American Airlines to regain its lost profits and operational efficiency. As United and Delta will be long-term beneficiaries following the merger actions on both capacity and cost fronts, we believe American Airlines will also emerge as a successful candidate by balancing its debt level and lowering costs.
American Airlines currently has a Zacks #2 (Buy) Rank for the short term (1–3 months).
Read the Full Research Report on RJET
Read the Full Research Report on LCC
Read the Full Research Report on JBLU
Read the Full Research Report on DAL
Read the Full Research Report on UAL
Read the Full Research Report on AAMRQ
Read the Full Research Report on ALK
Zacks Investment Research
More From Zacks.com
Read the analyst report on RJET,LCC,JBLU,DAL,UAL,AAMRQ,ALK
07-12-2012, 05:50 PM
#3
Line Holder
Joined APC: Nov 2011
Posts: 34
One of the more unlikely scenarios, however in this industry stranger things have happened.
— JETBLUE, VIRGIN AMERICA, FRONTIER OR ALASKA
Merging with a smaller airline isn't practical. JetBlue, the largest of this group, would add only 170 planes to American's 900-plane fleet. JetBlue and Alaska have great feeder networks on the East and West Coast, respectively, but American already has partnerships with both carriers that bring passengers to its hubs in cities like New York and Los Angeles.
JetBlue has been expanding in the Caribbean and cities in the Northeast — many locations abandoned by American. JetBlue's lower labor costs make this possible, said Ray Neidl, an airline specialist with the Maxim Group.
"A lot of markets JetBlue is expanding into, American can't make money in," Neidl said.
— JETBLUE, VIRGIN AMERICA, FRONTIER OR ALASKA
Merging with a smaller airline isn't practical. JetBlue, the largest of this group, would add only 170 planes to American's 900-plane fleet. JetBlue and Alaska have great feeder networks on the East and West Coast, respectively, but American already has partnerships with both carriers that bring passengers to its hubs in cities like New York and Los Angeles.
JetBlue has been expanding in the Caribbean and cities in the Northeast — many locations abandoned by American. JetBlue's lower labor costs make this possible, said Ray Neidl, an airline specialist with the Maxim Group.
"A lot of markets JetBlue is expanding into, American can't make money in," Neidl said.
07-13-2012, 03:49 AM
#4
Gets Weekends Off
Thread Starter
Joined APC: May 2012
Posts: 1,099
What we would like you to do is stop burying your head in the sand and vote for a CBA. This mentality of JetBlue, values, "do the right thing" is ridiculous. You believe because you received another retirement increase which still sets you well below industry standard JetBlue is doing the right thing?
When AA or another carrier comes to buy us what do you think JetBlue management will say? What do you think the courts will say? Even if JetBlue argued in your favor the courts and the acquiring carriers union will state but you signed a PEA and it says "this". And what "this" says is you can have separate operations, a 50% staple and be let go. Oh yeah, you also get $2,000,000 to fight your sli AFTER you exhaust your own resources.
Again, take your head out of the sand.
When AA or another carrier comes to buy us what do you think JetBlue management will say? What do you think the courts will say? Even if JetBlue argued in your favor the courts and the acquiring carriers union will state but you signed a PEA and it says "this". And what "this" says is you can have separate operations, a 50% staple and be let go. Oh yeah, you also get $2,000,000 to fight your sli AFTER you exhaust your own resources.
Again, take your head out of the sand.
07-13-2012, 04:05 AM
#5
Gets Weekends Off
Joined APC: Jul 2007
Position: 767 Captain
Posts: 3,988
Originally Posted by benzoate
Just copied this from another board.
We're ****ed boys and girls ifs it's true.
The airline industry is awaiting another major consolidation. American Airlines, a subsidiary of AMR Corp. (AAMRQ) is evaluating its merger proposal with the fifth largest U.S. airline US Airways Group Inc. (LCC).
Now, according to Reuters, four other candidates - JetBlue Airways Corp. (JBLU), Alaska Air Group (ALK), Frontier Airlines, a subsidiary of Republic Airways Holdings (RJET) and a privately held Virgin America have expressed interest to be the merger partner.
After seven months into bankruptcy restructuring, the third largest U.S. air carrier has improved its revenue and reduced costs to a certain extent. The company is progressing well with the labor union negotiations aimed at generating more than $1 billion in annual cost reductions.
Now, American Airlines together with its creditors will carefully review all the strategic alternatives that could make the airline even stronger. The team would evaluate synergies, costs, and tax and capital structure that would be generated from each merger.
JetBlue and Alaska have wide networks on the East and West Coast, respectively. The merger with these two carriers do not appear lucrative as American Airlines already has partnerships with them, providing services in cities like New York and Los Angeles. *
American Airlines could get a strong foothold in Denver by merging with Frontier. However, United and Southwest already have a strong presence in the city, which is not large enough to support the three major airlines. The next alternative, Virgin America is struggling with losses and has a huge debt in its balance sheet. As result, American Airlines may scrap this option altogether.* *
So, we see American Airlines-US Airways as the hottest pair in the industry as it will be in the best interest of the customers. Two months ago, the three labor unions of American Airlines supported a merger with US Airways.
The combination would be strong enough in scope and size to compete with their larger rivals, United Continental Holdings Inc. (UAL) and Delta Airlines Inc. (DAL). In fact, the combination would create an airline identical to the largest U.S. air carrier, United Continental, in terms of revenue and traffic, and would be better than the second largest airline, Delta.
This is an opportune moment for American Airlines to regain its lost profits and operational efficiency. As United and Delta will be long-term beneficiaries following the merger actions on both capacity and cost fronts, we believe American Airlines will also emerge as a successful candidate by balancing its debt level and lowering costs.
American Airlines currently has a Zacks #2 (Buy) Rank for the short term (1–3 months).
Read the Full Research Report on RJET
Read the Full Research Report on LCC
Read the Full Research Report on JBLU
Read the Full Research Report on DAL
Read the Full Research Report on UAL
Read the Full Research Report on AAMRQ
Read the Full Research Report on ALK
Zacks Investment Research
More From Zacks.com
Read the analyst report on RJET,LCC,JBLU,DAL,UAL,AAMRQ,ALK
We're ****ed boys and girls ifs it's true.
The airline industry is awaiting another major consolidation. American Airlines, a subsidiary of AMR Corp. (AAMRQ) is evaluating its merger proposal with the fifth largest U.S. airline US Airways Group Inc. (LCC).
Now, according to Reuters, four other candidates - JetBlue Airways Corp. (JBLU), Alaska Air Group (ALK), Frontier Airlines, a subsidiary of Republic Airways Holdings (RJET) and a privately held Virgin America have expressed interest to be the merger partner.
After seven months into bankruptcy restructuring, the third largest U.S. air carrier has improved its revenue and reduced costs to a certain extent. The company is progressing well with the labor union negotiations aimed at generating more than $1 billion in annual cost reductions.
Now, American Airlines together with its creditors will carefully review all the strategic alternatives that could make the airline even stronger. The team would evaluate synergies, costs, and tax and capital structure that would be generated from each merger.
JetBlue and Alaska have wide networks on the East and West Coast, respectively. The merger with these two carriers do not appear lucrative as American Airlines already has partnerships with them, providing services in cities like New York and Los Angeles. *
American Airlines could get a strong foothold in Denver by merging with Frontier. However, United and Southwest already have a strong presence in the city, which is not large enough to support the three major airlines. The next alternative, Virgin America is struggling with losses and has a huge debt in its balance sheet. As result, American Airlines may scrap this option altogether.* *
So, we see American Airlines-US Airways as the hottest pair in the industry as it will be in the best interest of the customers. Two months ago, the three labor unions of American Airlines supported a merger with US Airways.
The combination would be strong enough in scope and size to compete with their larger rivals, United Continental Holdings Inc. (UAL) and Delta Airlines Inc. (DAL). In fact, the combination would create an airline identical to the largest U.S. air carrier, United Continental, in terms of revenue and traffic, and would be better than the second largest airline, Delta.
This is an opportune moment for American Airlines to regain its lost profits and operational efficiency. As United and Delta will be long-term beneficiaries following the merger actions on both capacity and cost fronts, we believe American Airlines will also emerge as a successful candidate by balancing its debt level and lowering costs.
American Airlines currently has a Zacks #2 (Buy) Rank for the short term (1–3 months).
Read the Full Research Report on RJET
Read the Full Research Report on LCC
Read the Full Research Report on JBLU
Read the Full Research Report on DAL
Read the Full Research Report on UAL
Read the Full Research Report on AAMRQ
Read the Full Research Report on ALK
Zacks Investment Research
More From Zacks.com
Read the analyst report on RJET,LCC,JBLU,DAL,UAL,AAMRQ,ALK
The guys who need to be worried are the AA pilots. Merging with US Airways is like surgically implanting cancer into a patient. The conflict at that airline is already epic - add them to the AA-TWA mix and it will be decades before there is peace.
07-13-2012, 06:24 AM
#6
Super Moderator
Joined APC: Jun 2006
Posts: 3,945
Originally Posted by benzoate
What we would like you to do is stop burying your head in the sand and vote for a CBA. This mentality of JetBlue, values, "do the right thing" is ridiculous. You believe because you received another retirement increase which still sets you well below industry standard JetBlue is doing the right thing?
When AA or another carrier comes to buy us what do you think JetBlue management will say? What do you think the courts will say? Even if JetBlue argued in your favor the courts and the acquiring carriers union will state but you signed a PEA and it says "this". And what "this" says is you can have separate operations, a 50% staple and be let go. Oh yeah, you also get $2,000,000 to fight your sli AFTER you exhaust your own resources.
Again, take your head out of the sand.
When AA or another carrier comes to buy us what do you think JetBlue management will say? What do you think the courts will say? Even if JetBlue argued in your favor the courts and the acquiring carriers union will state but you signed a PEA and it says "this". And what "this" says is you can have separate operations, a 50% staple and be let go. Oh yeah, you also get $2,000,000 to fight your sli AFTER you exhaust your own resources.
Again, take your head out of the sand.
In the little that I wrote I do not recall mentioning any of the generalizations you claimed for me. It's the weekend, I'll be on the lake with a beer of you need me.
07-13-2012, 12:03 PM
#7
Used to get weekends off
Joined APC: Dec 2006
Position: BusFo
Posts: 581
Originally Posted by usmc-sgt
You guys are too much.
In the little that I wrote I do not recall mentioning any of the generalizations you claimed for me. It's the weekend, I'll be on the lake with a beer of you need me.
In the little that I wrote I do not recall mentioning any of the generalizations you claimed for me. It's the weekend, I'll be on the lake with a beer of you need me.
Some extremists can't leave well enough alone...Beer time!
07-13-2012, 02:52 PM
#9
New Hire
Joined APC: Mar 2011
Posts: 6
Originally Posted by benzoate
Now, according to Reuters, four other candidates - JetBlue Airways Corp. (JBLU), Alaska Air Group (ALK), Frontier Airlines, a subsidiary of Republic Airways Holdings (RJET) and a privately held Virgin America have expressed interest to be the merger partner.
UPDATE 4-AMR to advance with merger review, source says 5 airlines eyed | Reuters
UPDATE 4- AMR to advance with merger review, source says 5 airlines eyed
Related News
* CEO says will be reaching out to interested parties
* US Air, JetBlue, Alaska to be included -source
* Frontier, Virgin also included-source
* American sees itself as an acquirer -source
* Private equity, other carriers may be interested -source
By Soyoung Kim
NEW YORK, July 10 (Reuters) - The bankrupt parent of American Airlines said on Tuesday it will press ahead with evaluating potential mergers and will reach out to interested parties, a move set to satisfy some creditors less than impressed with its stand-alone restructuring plan.
A source familiar with the situation said AMR sees itself as an acquirer in potential mergers and at least five airlines -- US Airways Group Inc, JetBlue Airways Corp, Alaska Air Group, Republic Airways' Frontier Airlines, and Virgin America -- will be considered.
Any merger proposals would be weighed against the standalone restructuring plan being developed, the source added.
American has faced mounting pressure from vocal members of its creditors committee, led by its largest labor unions, who have argued that a merger with US Airways would give the combined carrier a strong network to compete with rivals beefed up by their own mergers. US Airways has expressed interest in a merger and has been courting AMR's creditors.
Executives at American, the No.3 U.S. airline, mentioned the five carriers as potential merger candidates at a meeting with its unsecured creditors committee on Tuesday and discussed the merits and challenges of each combination, said the source, who asked not to be identified because the matter is not public.
Chief Executive Tom Horton said in a letter to employees that greater clarity on revenue and the company's cost structure was allowing a review of potential mergers.
"It now makes sense to carefully evaluate a range of strategic options, including potential mergers, which could make the new American even stronger," he wrote.
The letter comes two months after American said it would explore merger options while still in bankruptcy.
US Airways said in a statement it was pleased with the development.
"All we have asked for is a fair and balanced opportunity to present our plan versus others, and we are hopeful this is the beginning of such a process," US Airways said. "We remain confident that our plan will maximize value for all stakeholders."
The source also said private equity firms, other legacy U.S. carriers and even foreign airlines may show interest in a potential deal or investment once American starts the evaluation work.
Related News
- AMR CEO says to move forward with merger review Tue, Jul 10 2012
- US Airways seeks to sell shareholders on AMR deal
- Fri, Jun 15 2012
- Exclusive: US Air plans antitrust filing to boost AMR bid Tue, Jun 12 2012
* CEO says will be reaching out to interested parties
* US Air, JetBlue, Alaska to be included -source
* Frontier, Virgin also included-source
* American sees itself as an acquirer -source
* Private equity, other carriers may be interested -source
By Soyoung Kim
NEW YORK, July 10 (Reuters) - The bankrupt parent of American Airlines said on Tuesday it will press ahead with evaluating potential mergers and will reach out to interested parties, a move set to satisfy some creditors less than impressed with its stand-alone restructuring plan.
A source familiar with the situation said AMR sees itself as an acquirer in potential mergers and at least five airlines -- US Airways Group Inc, JetBlue Airways Corp, Alaska Air Group, Republic Airways' Frontier Airlines, and Virgin America -- will be considered.
Any merger proposals would be weighed against the standalone restructuring plan being developed, the source added.
American has faced mounting pressure from vocal members of its creditors committee, led by its largest labor unions, who have argued that a merger with US Airways would give the combined carrier a strong network to compete with rivals beefed up by their own mergers. US Airways has expressed interest in a merger and has been courting AMR's creditors.
Executives at American, the No.3 U.S. airline, mentioned the five carriers as potential merger candidates at a meeting with its unsecured creditors committee on Tuesday and discussed the merits and challenges of each combination, said the source, who asked not to be identified because the matter is not public.
Chief Executive Tom Horton said in a letter to employees that greater clarity on revenue and the company's cost structure was allowing a review of potential mergers.
"It now makes sense to carefully evaluate a range of strategic options, including potential mergers, which could make the new American even stronger," he wrote.
The letter comes two months after American said it would explore merger options while still in bankruptcy.
US Airways said in a statement it was pleased with the development.
"All we have asked for is a fair and balanced opportunity to present our plan versus others, and we are hopeful this is the beginning of such a process," US Airways said. "We remain confident that our plan will maximize value for all stakeholders."
The source also said private equity firms, other legacy U.S. carriers and even foreign airlines may show interest in a potential deal or investment once American starts the evaluation work.
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