So, yes, there are plenty of merger possibilities, but it is unclear if the next one will be expected (Frontier-Spirit) or something that few saw coming (like Alaska's acquisition of Virgin America). Maintenance will be kept low because of the 737 aircraft and being able to swap out parts. Is a Senior Aviation Business Reporter at The Points Guy. From an operational perspective, it seems that Alaska would make more sense since they have a lot more Boeing aircraft. Still, it's hardly a match made in heaven. Since the industry was deregulated in the late 1970s, airlines have undergone successive waves of consolidation as they sought first regional, national and then international strength. A position that many have rumors and many would not have thought possible. Today, DeNardi writes,Currently, Southwest's business model is entirely dependent upon the [737]MAX returning and Boeing resuming/ramping production. Southwest is arguably the US airline most affected by the continuing Boeing 737 MAX disaster. Agree. Alaskas fleet has a lot more in common with Southwest (mostly 737) than Jet Blue (all-Airbus). In other words, because of the toll the pandemic has had on air travel and airline cash flow, the stock prices are crazy low and unattractive in trying to fund a deal. "Acquiring JetBlue is such an opportunity.". When the FAA finally gives the A-OK , the theory goes, a flood of 737 MAX aircraft will make their way to the airlines, potentially adding excess capacity and driving fares down in the teeth of an oncoming recession. Of course, neither deal is a certainty, and in either combination, executives could struggle to mesh the businesses. 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. We have been contacted by major union legal teams regarding this issue. Invest better with The Motley Fool. Check here before booking an award fare. 2009 - Merged with TACA Airlines. JetBlue had firm orders for 153 Airbus aircraft -- 70 A220-300s and 83 A321neos -- with delivery slots through 2026 at the end of September, its latest fleet plan shows. 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping. Raymond James analyst James Parker wrote in a research note to clients that Frontier could be acquired in a round of consolidation among low-cost carriers. Card Rating is based on the opinion of TPGs editors and is not influenced by the card issuer. 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. The Motley Fool has a disclosure policy. 75235 It is the only known comprehensive, centralized, publicly available source. Neither the U.S. Department of Transportation nor A4A maintains official records of airline M&A activity. Southwest grew tremendously internationally after acquiring AirTran. However, the flight attendants clearly weren't impressed. Consumer advocates want the DOJ to move against JetBlue-Spirit merger - NPR Bidding War for Spirit Could Undercut Power of Four Big Airlines But the deal would eliminate their competition on competitive routes, potentially hurting cost-conscious travelers. By Acquiring AirTran, Will Southwest Continue to Spread the LUV? 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. But its instructive to note that what was originally considered tragic but short term problem for Boeingthe initial crash of a Lion Air Boeing 737 MAX on October 29, 2018has morphed into a massive issue that has consumed the company, its now-fired CEO, its reputation and stock price. Downdetector only reports an incident when the number of problem reports is significantly higher than the typical volume for that time of day. This site does not include all credit card companies or all available credit card offers. 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. JetBlue, meanwhile, would get the biggest presence in one of America's most lucrative markets out of the deal. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. As a subscriber, you have 10 gift articles to give each month. He said Alaska Airlines, AirTran,. The airline was the largest U.S. operator of the type with 34 aircraft when it was grounded in March and has not taken delivery of a single new aircraft since then. Youd eventually bring the two together, but probably over 5 to 7 years it takes a while, but thats not a bad thing. So now why Spirit? The Flight Attendants & Pilots unions, wouldnt allow it to happen. The tentative agreement would have kept Southwest's flight attendants at the top of the industry in pay and benefits, according to the company. are down on average 36% over the past year. Keeping flight attendants and pilots on hand will be easy everybodys qualified. reduce the dependence on Boeing). That makes it the most logical merger partner of the three for Southwest Airlines. JetBlue's merger with Spirit will knock out one of America's largest

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