Into the wild Frontier
05-02-2022 | 05:05 AM
#11
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From: 320 Captain
There's some real nonsense going on behind the scenes. An offer from JB that was a superior payout to the shareholders, with concessions in the event the deal fell through. Either way, NK/F9 or B6/NK merging would create the 5th largest airline. Their argument is the business model of JB is going to tank the deal with regulators as opposed to the ULCC? That's the only real difference. I see some major lawsuits being directed towards NK.
05-02-2022 | 05:10 AM
#12
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There's some real nonsense going on behind the scenes. An offer from JB that was a superior payout to the shareholders, with concessions in the event the deal fell through. Either way, NK/F9 or B6/NK merging would create the 5th largest airline. Their argument is the business model of JB is going to tank the deal with regulators as opposed to the ULCC? That's the only real difference. I see some major lawsuits being directed towards NK.
At this point B6 is simply looking at them and asking the shareholders if they’re going to allow this to go on or not. There might be better returns over time with the super ULCC, but up front money might be more enticing as we enter another recession.
I don’t know if the B6 model can work at the scale they’re proposing. I also don’t know if the ULCC model
can work if they can’t attract crews to fuel their growth plans. Which they can’t.
05-02-2022 | 05:12 AM
#14
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The new super ULLC will have no problem finding crews.
05-02-2022 | 05:12 AM
#15
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From: CA
05-02-2022 | 05:25 AM
#16
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From: 320 Captain
This right here exactly. The monetary incentives here are for the board members over the shareholders. Their argument is moot in terms of what the DOJ will or wont accept. For all we know, they could reject the F9 merger as well.
05-02-2022 | 05:26 AM
#17
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Thanks, but No thanks it seems.
05-02-2022 | 05:43 AM
#18
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From: 320 Captain
It's not over yet folks... The shareholders will vote on this. The premium that JB is offering is significant to that of F9. There's some major money being turned down and some very powerful hedge funds that are potentially losing out on significant money. JB is even offering concessions in the event the DOJ rejects the offer. Prepare to see some major pushback on the NK board. This is a pretty blatant move by our board.
05-02-2022 | 05:51 AM
#20
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It's not over yet folks... The shareholders will vote on this. The premium that JB is offering is significant to that of F9. There's some major money being turned down and some very powerful hedge funds that are potentially losing out on significant money. JB is even offering concessions in the event the DOJ rejects the offer. Prepare to see some major pushback on the NK board. This is a pretty blatant move by our board.
Franke hasn't countered yet either.
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