Frontier’s Franke Sees Consolidation in Futur
#11
Gets Weekends Off
Joined APC: Sep 2010
Position: Side stick game boy.
Posts: 185
You and I both know that DOJ lawsuit isn't going to find anyone guilty of anything.
Precedent has been set allowing mega-carriers to form, so unless they can find some other grounds there is nothing stopping a Alaska/Blue/Virgin/Hawaiian merger or Frontier/Spirit/Allegiant
Precedent has been set allowing mega-carriers to form, so unless they can find some other grounds there is nothing stopping a Alaska/Blue/Virgin/Hawaiian merger or Frontier/Spirit/Allegiant
#12
Frontier, Spirit and Allegiant will attempt a merge and make one big mega ULCC. Then Delta, United and American will go crying to the DOJ and ALPA that the fares will be too low and the new ULCC will stifle competition, put too many seats out there and will cost them profits. The DOJ will nix the merger idea, Spirit and Frontier will go their own happy ways. Franke will pass away, JetBlue will purchase Frontier and Spirit will gobble up Allegiant, but by then the legacies will start whining about the Chinese airlines, so those purchases will go right under their noses.
#15
#17
Banned
Joined APC: Jun 2008
Posts: 8,350
Virgin is a dog with fleas. A ménage-a-trois with Blue/Spirit/Frontier would make a formidable competitor to Southwest. That trio has good fleet commonality and relatively minimal overlap. Plus, it would be fun to watch someone ELSE's pilot SLI for a change.
#18
Gets Weekends Off
Joined APC: Nov 2012
Position: 1900D CA
Posts: 3,395
Frontier, Spirit and Allegiant will attempt a merge and make one big mega ULCC. Then Delta, United and American will go crying to the DOJ and ALPA that the fares will be too low and the new ULCC will stifle competition, put too many seats out there and will cost them profits. The DOJ will nix the merger idea, Spirit and Frontier will go their own happy ways. Franke will pass away, JetBlue will purchase Frontier and Spirit will gobble up Allegiant, but by then the legacies will start whining about the Chinese airlines, so those purchases will go right under their noses.
I think that frontier and spirit will merge, but it'll be a while, maybe 10 years. Allegiant will remain independent. NK and F9 are so similar compared to Allegiant.
Frontier will IPO in the fall of 2016 and the stock will do ok. Franke will retire immediately after the merger. The merger talks will drive the stock prices way up and the big stock holders will make a killing. Meanwhile the pilots will continue to work for below industry average wages, but they will be significantly better than they are now.
#20
JB, Virgin, Alaska, Hawaiian have very similar business models (provide value to the customer) and JB/Virgin in particular are like twins separated at birth.
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