B6 to UAL in a bear market?
12-24-2018 | 09:57 AM
#31
Gets Weekends Off
Joined: Jun 2016
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B6 to UAL in a bear market?
Ran that scenario by Kirby himself when he came to TK and referenced his quote from earlier in the year saying he wanted to get back into JFK but didn’t see it happening “organically.” The rumors at JetBlue were circulating that this pointed to a buyout of some sorts. He squashed it immediately, saying “we’re doing too well on our own right now to take a risk doing something like that. And after the UAL/CAL merger, there’s no way we’d undertake another situation like that anytime soon.”
Not saying it can’t happen, but JetBlue doesn’t offer much to United... Just 28 gates in JFK, a brand new terminal in MCO, some brand new A320/A321s, and 60 orders for small-narrow-body aircraft with options for another 60 (A220).... Actually, sounds like a pretty good deal. Would never get past the DOJ though (NYC monopoly pretty much).
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12-24-2018 | 10:02 AM
#32
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Joined: Feb 2006
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From: JetRight, JetLeft
LOL! Please take a look at the percentage of NYC MSA traffic each airline garners. Such a merger would require significant divestiture in order to pass muster. United had to divest some NYC market share in the last merger.
I know this pipe dream merger has been circulating in the blue juice rumor mill, but it is completely based in fantasy.
I know this pipe dream merger has been circulating in the blue juice rumor mill, but it is completely based in fantasy.
I was hoping I could be senior to myself!
GP
Last edited by GuppyPuppy; 12-24-2018 at 10:13 AM.
12-24-2018 | 10:22 AM
#33
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Joined: Mar 2006
Posts: 5,213
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From: guppy CA
Well, I guess United could give all of JBLU's JFK gates/slots (everything out of JFK, lock stock and barrel) to LUV and other airlines in order to get through antitrust because that's what DOJ will demand. But how much does that diminish the value of JBLU?
12-24-2018 | 02:02 PM
#35
Line Holder
Joined: Feb 2007
Posts: 1,447
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From: Airplanes
Tough decision. I was at Spirit looking at an upgrade in 2015 and made the jump to United and never looked back. Best decision I’ve made for me and my family.
Our Senior management has stated that it can start parking aircraft off leases “in double digit figures” starting 2020. Scott Kirby has made it very clear that he wants a more flexible fleet during downturns. In that same statement they do not want to defer any current aircraft acquisition as we need to update our fleet. Kirby also wants to cut down fleet types at United.
IMO (for what it’s worth) I can see UAL start parking leased buses and eleiminating a fleet type over the course of several years. We have many 737 max 9/10s on order. We have a lot of old 767 and 757 that they want to replace with other aircraft as well.
My prediction (worst case senario!) is that UAL would halt hiring for x amount of years while they park aircraft and retirements naturally downsize the airline.
Good news is:
-we have a much leaner company that can actually handle downturns these days
-cheap oil
-high travel demand
-retirements ramping up more and more every year
Our Senior management has stated that it can start parking aircraft off leases “in double digit figures” starting 2020. Scott Kirby has made it very clear that he wants a more flexible fleet during downturns. In that same statement they do not want to defer any current aircraft acquisition as we need to update our fleet. Kirby also wants to cut down fleet types at United.
IMO (for what it’s worth) I can see UAL start parking leased buses and eleiminating a fleet type over the course of several years. We have many 737 max 9/10s on order. We have a lot of old 767 and 757 that they want to replace with other aircraft as well.
My prediction (worst case senario!) is that UAL would halt hiring for x amount of years while they park aircraft and retirements naturally downsize the airline.
Good news is:
-we have a much leaner company that can actually handle downturns these days
-cheap oil
-high travel demand
-retirements ramping up more and more every year
12-24-2018 | 04:14 PM
#38
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Joined: Aug 2007
Posts: 2,083
Likes: 10
The AA baseball player makes about $25,000/year while the big leaguer can make the same amount in one at-bat.
12-25-2018 | 06:00 AM
#40
Line Holder
Joined: Jun 2005
Posts: 830
Likes: 3
From: 756 CA
Then why merge? The entire idea for JB merger is to get back into JFK! UA can give away EWR gates, how about that?DL operates out of all 3 airports to include intl departures from EWR. Why can’t UA?
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