First of all, Alaska has a fairly extensive regional operation, with turboprop flights operated by its own regional subsidiary (Horizon Air) and regional jet flights that are contracted out. More concerningly, JetBlue recently trimmed service to destinations like Mexico City and the Caribbean, while canceling service at Oakland, CA and cutting service to Long Beach. There were significant differences in those areas in both cases. Instead of asking "are we done yet?" According to data from the TSA, December passenger demand declined 62.4% year-over-year, cited by Becker. AirTran flew off into the sunset last December. This Southwest Airlines merger talk simply seems to be a case of the rumor mill run amok. Alaskas fleet has a lot more in common with Southwest (mostly 737) than Jet Blue (all-Airbus). That would be a more reasonably sized candidate than AS or B6. Acquire them simply for the turn key second fleet type and to do away with a competitor. Classless Southwest Hawaii Review SJC to LIH: Quirky, Unique, How Some Tourists are Ruining Hawaii Travel for Everyone, Stunned! Would in all possibilities a merger between Southwest Airlines and American Trans Air be feasible. . provides, concessions can be made., Bidding War for Spirit Could Undercut Power of Four Big Airlines, https://www.nytimes.com/2022/04/08/business/spirit-airlines-jetblue-frontier.html. JetBlue and Spirit Airlines announced Thursday they have reached an agreement on a merger that would create the fifth largest airline in the U.S. This all-737 strategy is a big barrier to any further merger attempts at Southwest. Southwest CEO Gary Kelly, responding to Baker, said the MAX impact to that point was manageable and the airline continued to "execute" on its strategy. Downdetector only reports an incident when the number of problem reports is significantly higher than the typical volume for that time of day. I still think that at the end of the day, either deal that could possibly be challenged would likely be approved, said Kerry Tan, an economics professor at Loyola University Maryland. And while Spirit and JetBlue have some overlap, for example in similar fleets of planes, they operate differently. More likely is that WN goes out of the box and finds a way to lease previous gen 737s or hunt out a few that are on the market for sale to bridge the gap. It makes more . A position that many have rumors and many would not have thought possible. This Southwest Airlines merger talk simply seems to be a case of the rumor mill run amok. Related:Southwests 737-700s Among Jets Sticking Around Longer Because of the MAX, "Southwest needs aircraft. But dear @flysas , next time if I a, Ready for #PIA from #MAN to #JFK -- we will be rac, Another room with a beautiful view #hyattregenc, Enjoying #shanghai with @onemileatatime from the i, From my front gate to my boarding gate in 15 minut, @malaysiaairlines #747 out of retirement and in se, View from my 61st floor room at the beautiful bran. Alaska and JetBlue merger talk is completely out to lunch. Southwest is the #3 US airline by marketshare. The Companys most targeted sectors include airlines (75%) and aerospace (25%). Southwest has over 100 737 MAX on order, with growth plans built around that aircraft. Alaska is not a fan of Airbus with exception of A321. We should all know by now nothing is ever in inevitable. 75235 They sued for $74,999. In terms of market share, JetBlue had a 28% share of passengers at Boston Logan (BOS) and a nearly 13% share of passengers at the three New York City airports -- John F. Kennedy (JFK), LaGuardia (LGA) and Newark (EWR) -- in 2018, according to U.S. Department of Transportation data via Diio by Cirium. Now a bit player like Sun Country could be a different deal. However, gaining the terminal at JFK (which would be an extremely valuable gateway to Europe) would be the boon. 'Blue was outbid by Alaska, but the move did show that the carrier is open to the possibility of merging its operation with another airline. Compare the cost in points or miles to cash, and see which option is best. It is against the APC Forum Rules to advocate any labor action which is not authorized by the RLA/NMB. Yes they can unwind those contracts over time but until they do their business model has just changed dramatically. Southwest has acquired in 4 different US states. Its 17% share barely trails American, with 17.6%, and Delta, 17.4%. Southwest serves more then 100 destinations in 40+ states, the District of Columbia, the Puerto Rico, and five near-international countries via wholly owned subsidiary, AirTran Airways. JetBlue was looking for a merger as well. A total of 2 acquisitions came from private equity firms.It has also divested 1 asset.. Southwest's largest acquisition to date was in 2010, when it acquired AirTran Airways for $1.4B. Best card for premium perks while traveling, Capital One Venture X Rewards Credit Card, The Business Platinum Card from American Express, Marriott Bonvoy Business American Express Card, Southwest unveils stunning new Hawaii-themed aircraft, How to redeem Chase Ultimate Rewards points for maximum value, IHG Rewards Premier Business card review: The annual fee is justified. Flight attendants are suspiciousA few months ago, Southwest Airlines reached a tentative agreement with the Transport Workers Union on a new flight attendant contract. The airlines reported $117 million and $473 million net losses, respectively, in 2021 on Monday. So neither is a great fit beyond merely acquiring aircraft. There might also be some push-back from federal regulators. If You Do This, You Won't Have to Worry About Them, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. At the end of the day thats what this is all about Customer service people want to be treated like theyre special especially when theyre going on a special vacation or even a meetinglife events. LOS ANGELES, CA - JUNE 18: JetBlue Airways Airbus A321 at Los Angeles International Airport on June [+] 18, 2017 in Los Angeles, California. Labor relations would be much more contentious (I think Spirit Pilots would jump at the chance to fly under the SWA contract seniority list integrations always being contentious). The next largest carrier, American Airlines, had a 22% share. A combined Frontier and Spirit would control over 8 percent of the market, and JetBlue and Spirit together would command more than 10 percent. Youre facing American, United, Delta and Southwest with such enormous fleets and market penetration, said Samuel Engel, a senior vice president and airline industry analyst at ICF, a consulting firm. But even this schedule change was before Boeings latest disastrous 737 MAX announcement. Neither the U.S. Department of Transportation nor A4A maintains official records of airline M&A activity. American Airlines. We'll run a soft credit check to find special offers, but it wont affect your credit score. And US Airways had much less in the way of contested hubs than an Alaska/Jet Blue hybrid would- they would literally have a bigger competitor in EVERY hub or focus city outside of Anchorage (lol). It is irrelevant whether the union itself has anything to do with the action. Terms apply to the offers listed on this page. www.southwest.com. Southwest Airlines (LUV) Q1 2023 Earnings Call Transcript, Southwest Airlines (LUV) Q4 2022 Earnings Call Transcript, Why Southwest Airlines Stock Is Falling Today, Why Southwest Airlines Stock Fell in December, Why Southwest Airlines Is Losing Altitude Today, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, Social Security Cuts May Be Coming. Sure it could. When Alaska Airlines bought the much smaller Virgin America in 2016, it took three years just to repaint all the planes. The Chicago Business Journal is reporting that Southwest CEO Gary Kelly appears to be in the acquisition mode, and Hawaii may not be far from his thoughts and plans. With a complimentary route map and compatible fleet, and regardless of AS' financial status, it all seems to click. While it has certain benefits in training and maintenance those factors would be an easy offset in allowing Southwest to add something like the A220 for long lean market pairs (I.e. The Marriott Bonvoy Business Amex is a stacked card with a rewards rate that will help you earn bonus points on everyday and business-related purchases. All contract under the jet labor. United is going back to JFK [airport] after an absence of a few years and it [JetBlue] has a big presence there, long-time airline industry analyst Helane Becker of Cowen told Yahoo Finance Live. There haven't really been any recent rumors about a deal between Hawaiian Airlines and JetBlue, but it does seem like a match that could work. The Motley Fool has no position in any of the stocks mentioned. Diana Moss, the president of the American Antitrust Institute, a left-leaning organization that has long called for tougher enforcement of competition laws, has asked the Justice Department to block the Spirit-Frontier deal. Quickly dismantle Spirits network and deploy the Airbus where it makes sense within the WN network. Alaska Airlines does operate an all-737 fleet in its mainline operations. By logging into your account, you agree to our. They also said that buying Spirit would allow JetBlue to compete more aggressively with the four big airlines. Save my name, email, and website in this browser for the next time I comment. All Rights Reserved. Please don't sabotage your own union's efforts on your behalf. This heat map shows where user-submitted problem reports are concentrated over the past 24 hours. Integrating another airline via acquisition can be time-consuming and difficult. Regulators would probably never approve a merger between, say, United and Delta. We have been contacted by major union legal teams regarding this issue. Mergers and Acquisitions Facts, rumors, and conjecture New Thread Subscribe Page 1 of 20 1 2 3 4 5 11 > There have been predictions of widespread airline consolidation since the onset of the Covid-19 pandemic, but don't expect 2021 to be the year that happens. Mergers in the airline industry have led to higher prices for consumers and lower wages for workers, and the Justice Department needs to closely scrutinize these proposed deals and challenge them if necessary, she said in a statement to The New York Times this week, echoing a letter she and other lawmakers sent to regulators last month about the Frontier-Spirit deal.

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