Article: Allegiant Frontier Spirit to Merge?

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Quote: and contracts, those aren’t identical, Spirits is better.
I'm talking about business models. The differences between our contracts doesn't even factor into the decision to merge/aquire

Such a pilot thing to say.
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mergers are bad for pilots, none of us should want this
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Quote: 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.
Quote: Agreed.

Allegiant runs a completely different business model.

Frontier and spirit are identical except for the paint color
Quote: It would be a lot easier to iron out the differences between Frontier and Spirit, compared to either of them and Allegiant.
I bet Spirit buys Frontier, then Allegiant gets with a legacy looking for cheap planes and to grow their domestic network. United's domestic network sucks, it's mostly transcons and RJs. They have been moving into Allegiant's turf since the downturn trying to grab market. They could grab allegiant and have a turn key domestic network. They just move the planes and people to United bases nearby. AA is burning the furniture, and the vultures are circling. Allegiant could grab them in bk just like AWA grabbed USAir who grabbed AA. Delta is unlikely because Allegiant is pond scum to them (along with everyone else) though hammering out a merger agreement with the hat boys would be pretty hilarious to see.
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Quote: I'm talking about business models. The differences between our contracts doesn't even factor into the decision to merge/aquire

Actually, it does.

To a lesser degree, is the fact that the managers will have to assume that the better labor contract will prevail and in fact the pilots may succeed in cherry-picking the best of each.

But the big deal is a scope... if a legacy, all of which rely on regional feed (all but HA to a large degree), were to purchase and merge a LCC with a successorship and a "no outsourcing" scope clause that could be a show-stopper. They would actually have to negotiate with the LCC pilot group to waive their scope. Otherwise they could buy, but not merge, the LCC. Of if they did merge them, they'd have to immediately ditch ALL of their regional feed including long-term FFD contracts which would have to be bought out Good scope is a show-stopper, unless they can bribe the acquired pilot group to waive it.
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Quote: Actually, it does.

To a lesser degree, is the fact that the managers will have to assume that the better labor contract will prevail and in fact the pilots may succeed in cherry-picking the best of each.

But the big deal is a scope... if a legacy, all of which rely on regional feed (all but HA to a large degree), were to purchase and merge a LCC with a successorship and a "no outsourcing" scope clause that could be a show-stopper. They would actually have to negotiate with the LCC pilot group to waive their scope. Otherwise they could buy, but not merge, the LCC. Of if they did merge them, they'd have to immediately ditch ALL of their regional feed including long-term FFD contracts which would have to be bought out Good scope is a show-stopper, unless they can bribe the acquired pilot group to waive it.
Exactly; this is what makes any deal regardless of dance partner (United/Alaska, insert latest van driver rumor) w/JetBlue difficult. B6 CBA has very strong scope.
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Quote: Exactly; this is what makes any deal regardless of dance partner (United/Alaska, insert latest van driver rumor) w/JetBlue difficult. B6 CBA has very strong scope.
If I were a manager, I'd just write one check for a fat signing bonus... might be able to afford a big enough one-time bonus to get 50%+1 to bite.
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Quote: I bet Spirit buys Frontier, then Allegiant gets with a legacy looking for cheap planes and to grow their domestic network. United's domestic network sucks, it's mostly transcons and RJs. They have been moving into Allegiant's turf since the downturn trying to grab market. They could grab allegiant and have a turn key domestic network. They just move the planes and people to United bases nearby. AA is burning the furniture, and the vultures are circling. Allegiant could grab them in bk just like AWA grabbed USAir who grabbed AA. Delta is unlikely because Allegiant is pond scum to them (along with everyone else) though hammering out a merger agreement with the hat boys would be pretty hilarious to see.
This is the most ridiculous thing I’ve heard. Allegation has $780 million in cash. That’s it. The only airline they could merge with or buy is Breeze. A legacy doesn’t need to buy allegiant. There’s a reason they’re using RJs on those routes and not a320’s.
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We were talking about a potential Frontier/Spirit merger.

My point was that the minor differences between our pilot contracts won't factor into a decision to merge/aquire.
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Quote: This is the most ridiculous thing I’ve heard. Allegation has $780 million in cash. That’s it. The only airline they could merge with or buy is Breeze. A legacy doesn’t need to buy allegiant. There’s a reason they’re using RJs on those routes and not a320’s.
Tend to agree, allegiant doesn't bring anything to the table that they don't already have other than maybe slots and gates at Willy.

Lot easier to just pull their own planes out of the desert and have their own guys fly them (the guys they're paying to sit home right now).

The only appeal G4 might have had to the bigs would have been experienced bus srivers... in an alternate reality where there was still a shortage of competent, experienced 121 pilots.
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Quote: Tend to agree, allegiant doesn't bring anything to the table that they don't already have other than maybe slots and gates at Willy.

Lot easier to just pull their own planes out of the desert and have their own guys fly them (the guys they're paying to sit home right now).

The only appeal G4 might have had to the bigs would have been experienced bus srivers... in an alternate reality where there was still a shortage of competent, experienced 121 pilots.
Don’t forget about the sweet naming rights to the stadium in Vegas.
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