It's going to be ok everyone, lol

American Airlines Can Not And Should Not Compete Against Spirit $AAL
http://www.seekingalpha.com/article/3604346

 

Why would they do that? They would have to buy F9 and SWA and JB and pretty much anyone else who competed with them....

 

You might be able to buy F9 for less than 2.9 billion.. But it's not even close for SWA or JB..

 

Agreed, sad considering our Market Cap was 2x JB 6 months ago

 

Don't quote me on this, I'm sure there are guys here who know a LOT more than I do about this, but I don't believe the RLA or the McCaskill-Bond amendment will allow an airline to just purchase another just to get rid of it. The seniority lists are required to be merged, if either airline holds a FAA certificate. Someone can correct me if I'm wrong.

Furthermore, I don't believe the DOJ would allow AA to purchase Spirit, since AA is the world's largest airline and the acquisition and merger would be seen as anti-competitive, especially now given the fact that American is changing rates and stating that Spirit is competing with them across a large portion of their domestic market.

 

I was thinking and am hoping for the same thing.

Tomorrow's conference call will be interesting!

 

That is absolutely untrue.

The scope provisions in your contract dictate what happens if your airline is bought or if your airline buys another airline. No requirement for a merged seniority list as well.

 

Not sure what it means but here it is, lol

D. Merger Protection

1. 2. E. In the event of any merger of the Company with another airline, acquisition of the Company by another airline, or acquisition by the Company of another airline, that affects the seniority rights of pilots on the Spirit Airlines Pilots’ Seniority List, the parties will make their best efforts to integrate the seniority lists in a fair and equitable manner including, where applicable, agreement through collective bargaining between the carriers and the representatives of the pilot groups affected. In the event of failure to agree, the dispute shall be resolved in accordance with Sections 2, 3, and 13 of the Allegheny-Mohawk Labor Protection Provisions, except that the integration of the seniority lists of the respective pilot groups shall be governed by the Association Merger Policy if both pre-transaction pilot groups are represented by the Association. Upon the announcement of any transaction that is intended to result in the consolidation of the Company with another air carrier, the parties will meet promptly to negotiate an appropriate fence agreement and to implement a seniority integration process as described in Section 1.D.1 above. These discussions shall not be a prerequisite for closing or completing a transaction under this section."

 

Well, there you have it. In the event that American purchased us, they couldn't just show us all the door, dissolve the company and shutter everything up.

 

To be clear I wasn't sure what is in the Spirit contract. I was just saying it needs to be in the contract to dictate what happens.