Lawsuit filed against B6/NK
- Thread starter Box hauler
- Start date
Cherokee_Cruiser
Bronteroc
Stock price is gonna move based on various analyst remarks and sentiment. This is a terrible take by this particular analyst.
BobDDuck
Island Bus Driver
Helane is anything but a moron. Out of all the aviation analysts, she is one of the most highly regarded, and is right way more often than she is wrong.
Kingairer
'Tiger Team' Member
When companies go into this, especially after DOJ scrutiny, they go on a full public relations campaign, including selling the merger to the employees and painting rosy pictures of how great things will be and how it's a fight for their existence. For example, the NorthEast Alliance was sold to AA employees as this great and vital thing, after the DOJ blocked it and lost the court case, AA was quoted as saying it didnt meaningfully change the outcome of the finances... In todays market I dont see how this would be a major change for the better for either group. Neither group really seemed to gained something that couldnt be done already organically. Same airplane, similar route network, etc...The C suite types know theyll make out handsomely on these deals, its why they want it so badly, some will be made redundant and paid to go away and they can find some other comfortable job and double dip. Tom Horton, the CEO who guided AA into bankruptcy and the merger to USAirways, received 20 Million dollars to just go away. If this is the end of it, id breathe a sigh of relief knowing youre not going to have to go through a messy integration and years long battle of seniority disputes and campaigning. I was pro AA/US merger primarily because I saw it as the only way out of the Nicalou seniority disaster and the lack of a new contract that caused it. But with JB/NK both having good contracts the gains can be made without the heartburn.
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Well… Neener, neener!
roundout
VNAV monitor
Ironic because the basis for the block was that it removed too many ULCC seats from the market. Unless I read it wrong, which is possible, if not probable.Ok, this bolded part of journalism. What in the actual eff…
Spirit Airlines extends slide as blocking of JetBlue merger fuels uncertainty — Reuters
Shares of ultra-low-cost carrier Spirit Airlines (SAVE.N) fell 17% in morning trade on Wednesday, a day after a U.S. judge blocked the airline's planned $3.8 billion merger with rival JetBlue Airways (JBLU.O).stocks.apple.com
Some analysts said the company might contemplate a bankruptcy filing to streamline its balance sheet and reorganize into a financially robust airline.
The best-case scenario for Spirit would be a Chapter 11 filing, followed by a liquidation (Chapter 7), according to TD Cowen analyst Helane Becker.
Cherokee_Cruiser
Bronteroc
Which is stupid, because nothing stops Spirit today from announcing it is no longer an ULCC carrier and adopting a 2-class seating model like the others.
But I’m from the government, and I’m here to help.
Autothrust Blue
Welcome aboard the Washington State Ferries
Yeah, uh, I actually agree somewhat with her here too. They've been burning the friggin' furniture in Miramar, for quite some time, now. And I don't have any inside baseball on this...this is based on publicly-available finances and the like.
Robin, Ted & Co. really bungled this.
Boots2Wings
Just happy to be here.
Maybe a certain ULCC will swoop in to recapture their initial plans..certainly would be useful to staff all these new bases for their one day trips without diluting seniority even further…though I don’t know Id wish that on my yellow brethren.
Roger Roger
Bottom of the list
I don’t get the anger at the feds for this… first, if spirit was running the business into the ground in hopes a merger would save them, isn’t that utterly incompetent management and aren’t they the ones you should be mad at? Second, if the operation was losing money as spirit, how was it magically going to become profitable as a part of JetBlue, without also paring way back? If the routes/planes weren’t profitable before, they definitely wouldn’t be profitable when they suddenly became redundant with a lot of the JetBlue network and the operation would still need to shrink.
Cherokee_Cruiser
Bronteroc
A merger is still better than Chap 7.
JetBlue would have made it work. They would have made all the planes JetBlue, Eli one have tweaked the airline model, changed route structure, etc.
skypilot6
Well-Known Member
Ok, this bolded part of journalism. What in the actual eff…
Spirit Airlines extends slide as blocking of JetBlue merger fuels uncertainty — Reuters
Shares of ultra-low-cost carrier Spirit Airlines (SAVE.N) fell 17% in morning trade on Wednesday, a day after a U.S. judge blocked the airline's planned $3.8 billion merger with rival JetBlue Airways (JBLU.O).
Some analysts said the company might contemplate a bankruptcy filing to streamline its balance sheet and reorganize into a financially robust airline.
The best-case scenario for Spirit would be a Chapter 11 filing, followed by a liquidation (Chapter 7), according to TD Cowen analyst Helane Becker.
And thats the opinion of one analyst, I can foresee chapter 11 a possibility, but 7? that seems like a stretch.
Regardless a lot of changes coming our way.
killbilly
Vocals, Lyrics, Triangle, Washboard, Kittens
JetBlue wasn’t acquiring Spirit as an airline, per se. They were a source of airplanes, pilots and an order book - it represented a vast acceleration of plans to grow because those things take a lot of time to acquire organically.
JetBlue was buying a 7 year leap forward in time, so to speak.
Autothrust Blue
Welcome aboard the Washington State Ferries
So, you’re saying it was a transparent attempt to eliminate a direct competitor.
killbilly
Vocals, Lyrics, Triangle, Washboard, Kittens
(Shrug) Okay?
Back when I flew as a pax a lot, I always found the products different - so as an entity that also flew airplanes to some of the same cities, sure, they were competitors.
But with vastly different customer experiences.
Again. Whatever. It’s done. The uncertainty about the future is what has everyone up in arms the most.
Baronman
Well-Known Member
Hats off to the DOJ for further solidifying the big 4’s position in the market and pushing Spirit closer to the cliff.
This reminds me somewhat of a scenario that played out last year in Colombia. There was a smaller carrier Viva that was in distress… Avianca puts an offer to buy Viva, their Feds basically block the deal… shorty thereafter Viva ceases operations. Great going “Authorities.”
This reminds me somewhat of a scenario that played out last year in Colombia. There was a smaller carrier Viva that was in distress… Avianca puts an offer to buy Viva, their Feds basically block the deal… shorty thereafter Viva ceases operations. Great going “Authorities.”
Cherokee_Cruiser
Bronteroc
And that’s been different for the past 25 years, because?
The last one (AS/VX) was for sure to eliminate a competitor and to stop B6 from getting VX.
ClearedForOption
Psychiatric Help 5¢
ClearedForOption
Psychiatric Help 5¢
Not only that, they are most likely going to be responsible for the loss of thousands of good Union jobs.
Shame.
Roger Roger
Bottom of the list
The DOJ didn’t run either airline in such a way that the only way to survive was to merge….that seems like it’s on management