UA going to buy Jetblue?
11-01-2016 | 03:10 AM
#13
Gets Weekends Off
Joined: Sep 2008
Posts: 149
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From: 30 West
If the target of an 18,000 (or 16k) pilot airline is serious, then buying another carrier is probably the only way to go. B6 is probably a better fit than Spirit. Virgin America might be a better choice, but Alaska already snapped them up.
Their Mint 321s would be a good replacement for the PS757s on the same routes.
Achieve market dominance in NYC. Plus eliminate a low fare competitor.
Instant fleet expansion with 160 A320/321 aircraft plus 60 'SNB' E190s.
MCO hub, with Caribbean and Latin American focus.
B6 is thinking about joining the star alliance, and LH owns a chunk of them, so there is convergence already.
If it can be done, Wall Street probably has a multi-orgasmic response.
I heard this rumor last week. I filed it under 'wishful thinking'. But it does have merit, if the price is right, and the anti-trust costs aren't too high.
Their Mint 321s would be a good replacement for the PS757s on the same routes.
Achieve market dominance in NYC. Plus eliminate a low fare competitor.
Instant fleet expansion with 160 A320/321 aircraft plus 60 'SNB' E190s.
MCO hub, with Caribbean and Latin American focus.
B6 is thinking about joining the star alliance, and LH owns a chunk of them, so there is convergence already.
If it can be done, Wall Street probably has a multi-orgasmic response.
I heard this rumor last week. I filed it under 'wishful thinking'. But it does have merit, if the price is right, and the anti-trust costs aren't too high.
JetBlue is "thinking of joining the Star Alliance"? I don't think it works that way.... do you think UAL's Pilot's are going to say sure sign them up. Our scope protects against that.
11-01-2016 | 04:31 AM
#14
Gets Weekends Off
Joined: Oct 2006
Posts: 1,183
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From: 777, sofa
That's some iron-clad scope right there. I need to re-read the UPA.
I think my info was bad... The Star Alliance rumors were old, from 2010. LH does still own about 15% of B6, so it does make sense from their perspective, but it doesn't look like B6 followed through on the alliance joining idea.
11-01-2016 | 04:51 AM
#15
Gets Weekends Off
Joined: Sep 2008
Posts: 149
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From: 30 West
Our scope clause prohibits JetBlue from joining the Star Alliance and codesharing with other airlines who are members of the Star Alliance? The MEC has Veto power over which airlines can join Star?
That's some iron-clad scope right there. I need to re-read the UPA.
I think my info was bad... The Star Alliance rumors were old, from 2010. LH does still own about 15% of B6, so it does make sense from their perspective, but it doesn't look like B6 followed through on the alliance joining idea.
That's some iron-clad scope right there. I need to re-read the UPA.
I think my info was bad... The Star Alliance rumors were old, from 2010. LH does still own about 15% of B6, so it does make sense from their perspective, but it doesn't look like B6 followed through on the alliance joining idea.
11-01-2016 | 05:05 AM
#16
Gets Weekends Off
Joined: Oct 2010
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However, as soon as CAL entered the picture with STAR LH announced they were exiting their stake in JB and sold bonds that are convertible to their JB stock. The bonds expire in 2017 so the clock is ticking and LH's ownership is pretty much "on paper" these days. The last info I found stated that 90% had already been redeemed by 2015.
A LH/UAL/JB hookup has been a HOT and HEAVY rumor at JB that resurfaces about every six months and next year will be the 10th anniversary of the rumor. Although a stuck clock is occasionally correct and this deal could happen, Chicken Little has been screaming about it for quite some time and nothing has happened.
11-01-2016 | 05:16 AM
#18
Gets Weekends Off
Joined: Sep 2008
Posts: 149
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From: 30 West
FWIW, LH currently has two seats on the JB BOD due to their ownership stake.
However, as soon as CAL entered the picture with STAR LH announced they were exiting their stake in JB and sold bonds that are convertible to their JB stock. The bonds expire in 2017 so the clock is ticking and LH's ownership is pretty much "on paper" these days. The last info I found stated that 90% had already been redeemed by 2015.
A LH/UAL/JB hookup has been a HOT and HEAVY rumor at JB that resurfaces about every six months and next year will be the 10th anniversary of the rumor. Although a stuck clock is occasionally correct and this deal could happen, Chicken Little has been screaming about it for quite some time and nothing has happened.
However, as soon as CAL entered the picture with STAR LH announced they were exiting their stake in JB and sold bonds that are convertible to their JB stock. The bonds expire in 2017 so the clock is ticking and LH's ownership is pretty much "on paper" these days. The last info I found stated that 90% had already been redeemed by 2015.
A LH/UAL/JB hookup has been a HOT and HEAVY rumor at JB that resurfaces about every six months and next year will be the 10th anniversary of the rumor. Although a stuck clock is occasionally correct and this deal could happen, Chicken Little has been screaming about it for quite some time and nothing has happened.
11-01-2016 | 05:32 AM
#19
Line Holder
Joined: Feb 2013
Posts: 1,296
Likes: 4
From: CA
DL still has the most seats at JFK although clearly JB is a huge player there as well.
There'd have to be some givebacks in the NY market for a DOJ approval.
JB brings it's considerable South Florida (FLL) and Caribbean marketshare and obviously a sizable BOS operation.
I dunno.....On paper it almost looks like they compliment each other too well. I think if they could work through it, it has the potential of being a shot in the arm for UAL.
Perhaps the timing of JB's first pilot contract would be an additional consideration in the timing of the deal if it were in fact happening. 2017 timeframe being the current guesstimate for a TA. All other workgroups being non-union.
11-01-2016 | 05:45 AM
#20
SDQ Base Chief
Joined: Mar 2006
Posts: 6,057
Likes: 34
From: 320 CA
Our scope clause prohibits JetBlue from joining the Star Alliance and codesharing with other airlines who are members of the Star Alliance? The MEC has Veto power over which airlines can join Star?
That's some iron-clad scope right there. I need to re-read the UPA.
I think my info was bad... The Star Alliance rumors were old, from 2010. LH does still own about 15% of B6, so it does make sense from their perspective, but it doesn't look like B6 followed through on the alliance joining idea.
That's some iron-clad scope right there. I need to re-read the UPA.
I think my info was bad... The Star Alliance rumors were old, from 2010. LH does still own about 15% of B6, so it does make sense from their perspective, but it doesn't look like B6 followed through on the alliance joining idea.
http://www.bloomberg.com/news/articl...-jetblue-stake
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