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Merger failure?

Old 12-14-2022 | 12:47 PM
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Default Merger failure?

Does anyone think that if the Northeast alliance with JetBlue in American gets approved that the merger won't happen? There was an article out just recently that JetBlue and American have added more flights to the Northeast alliance.
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Old 12-14-2022 | 01:10 PM
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No. Maybe the other way around. JetBlue wants both but the merger is more important if they have to choose.
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Old 12-14-2022 | 01:20 PM
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My bet is JBLU has been fattening up the NEA for a while, just to bring it to slaughter for the DOJ. They will gladly give up the NEA as an “offering” to get the merger done.
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Old 12-14-2022 | 01:38 PM
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JetBlue needs the NK order book. The pilots would be a plus too, but they NEED the aircraft on order.
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Old 12-15-2022 | 09:42 AM
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If the merger is terminated JB owes us several hundred million dollars. It would bankrupt them. If the DOJ nixes the NEA, JB and AA go their separate ways, no hard feelings. They will take the merger given the choice.

As someone said, their tactic might be to make the NEA so extensive that after it's pared-down by DOJ, it's still something worthwhile.
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Old 12-15-2022 | 10:05 AM
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Originally Posted by BusBoi
If the merger is terminated JB owes us several hundred million dollars. It would bankrupt them. If the DOJ nixes the NEA, JB and AA go their separate ways, no hard feelings. They will take the merger given the choice.

As someone said, their tactic might be to make the NEA so extensive that after it's pared-down by DOJ, it's still something worthwhile.
JBLU starts making monthly termination fee payments next month. It'll be paid off before it even goes to the DOJ for a vote.
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Old 12-15-2022 | 10:16 AM
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Originally Posted by upup89
JBLU starts making monthly termination fee payments next month. It'll be paid off before it even goes to the DOJ for a vote.
Do you mean they're paying money into a fund that will be used if it fails?
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Old 12-15-2022 | 10:28 AM
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Originally Posted by upup89
JBLU starts making monthly termination fee payments next month. It'll be paid off before it even goes to the DOJ for a vote.
I think you mean a “ticking fee”
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Old 12-15-2022 | 10:32 AM
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Originally Posted by Halon1211
I think you mean a “ticking fee”
Correct. I believe it’s 10 cents/share per month paid.
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