- Sep 10, 2003
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Has anybody else here in NY been hearing the increasing rumors about AA acquiring Jetblue? I know that these kinds of rumors are always around, but this one keeps picking up steam.
I can see this scenario having several advantages and disadvantages:
Advantages:
1. Jetblue Airbus fleet would very nicely replace the aging MD80s.
2. The majority of Jetblue's workforce was hired after 2001, so seniority issues with pilots and flight attendants would be minimal for the AA group as most of Jetblue was hired after the last AA hiring wave and subsequent furloughs. Obviously, the Jetblue group would not be pleased even with DOH, however, since DOH would still put them at the bottom of the AA list.
3. The lease on the new terminal could be sold at a good price to another airline in desperate need of new facilities at JFK, ie Delta.
4. Elimination of competition at JFK.
Disadvantages:
1. Taking on more debt.
2. Jetblue poison pill requiring the acquirer to pay wages to furloughed employees who lose their job in an acquisition.
3. Impending slot restrictions at JFK.
4. The Luthansa and Star Alliance involvement.
I am sure there are more advantages and disadvantages, but as much as I do not like listening to rumors, I keep hearing this one over and over lately here in NY.
I can see this scenario having several advantages and disadvantages:
Advantages:
1. Jetblue Airbus fleet would very nicely replace the aging MD80s.
2. The majority of Jetblue's workforce was hired after 2001, so seniority issues with pilots and flight attendants would be minimal for the AA group as most of Jetblue was hired after the last AA hiring wave and subsequent furloughs. Obviously, the Jetblue group would not be pleased even with DOH, however, since DOH would still put them at the bottom of the AA list.
3. The lease on the new terminal could be sold at a good price to another airline in desperate need of new facilities at JFK, ie Delta.
4. Elimination of competition at JFK.
Disadvantages:
1. Taking on more debt.
2. Jetblue poison pill requiring the acquirer to pay wages to furloughed employees who lose their job in an acquisition.
3. Impending slot restrictions at JFK.
4. The Luthansa and Star Alliance involvement.
I am sure there are more advantages and disadvantages, but as much as I do not like listening to rumors, I keep hearing this one over and over lately here in NY.