Closing Arguments Hint Towards Approval with Conditions

[eolesen]

During closing arguments on the B6-NK trial, one of the lines of questioning from the judge hint at approval with divestitures. He then disclaims it saying it's part of the thought process.

Still, I'd be surprised if it wasn't approved with conditions and goes against the DOJ's objections. They haven't substantially blocked too many mergers, and this Administration doesn't seem to have too many wins in general when it comes to actual interpretation of law and statutes...

JetBlue-Spirit Judge Weighs Divestitures, Considers Injunction Limitations | Aviation Week Network

The Judge, noting the industry's post-pandemic dynamic, said he was “having trouble” with a permanent injunction and was “hesitant” to implement the measure.

aviationweek.com

“Suppose as I work through this, and think what I have before me is insufficient and warrants some restraint, but with some more divestitures it might work … Should I go down that route?” U.S. District Judge William Young asked attorneys for the U.S. Justice Department (DOJ), one of a few hypotheticals he posed during the Dec. 5 session.

“Don’t I have to look out in the future?” Judge Young asked DOJ in considering the financials. “We’re not going to get anywhere if you win, I enjoin this merger, and Spirit goes belly-up.” DOJ projected that, at most, Spirit’s growth would slow, pointing to its past growth rates, while reiterating a central argument that a merger would result in the elimination of roughly half the ULCC capacity in the country.

 

[WeAAsles]

During closing arguments on the B6-NK trial, one of the lines of questioning from the judge hint at approval with divestitures. He then disclaims it saying it's part of the thought process.

Still, I'd be surprised if it wasn't approved with conditions and goes against the DOJ's objections. They haven't substantially blocked too many mergers, and this Administration doesn't seem to have too many wins in general when it comes to actual interpretation of law and statutes...

JetBlue-Spirit Judge Weighs Divestitures, Considers Injunction Limitations | Aviation Week Network

The Judge, noting the industry's post-pandemic dynamic, said he was “having trouble” with a permanent injunction and was “hesitant” to implement the measure.

aviationweek.com

Working in FLL now I have a vested interest in seeing where this goes. If they need to give up more gate space to OAL’s who’s going to get them. AA is actually a small player in FLL even if they do dominate MIA down the road. And SWA is downsizing. Not sure who else besides any of the big 3 might want the gates? Can Allegiant and Frontier cover the openings?

 

[SWAMECH]

During closing arguments on the B6-NK trial, one of the lines of questioning from the judge hint at approval with divestitures. He then disclaims it saying it's part of the thought process.

Still, I'd be surprised if it wasn't approved with conditions and goes against the DOJ's objections. They haven't substantially blocked too many mergers, and this Administration doesn't seem to have too many wins in general when it comes to actual interpretation of law and statutes...

JetBlue-Spirit Judge Weighs Divestitures, Considers Injunction Limitations | Aviation Week Network

The Judge, noting the industry's post-pandemic dynamic, said he was “having trouble” with a permanent injunction and was “hesitant” to implement the measure.

aviationweek.com

Just reading your highlights you provided, seems he is torn between allowing, not allowing, or at least allowing with more concessions and limitations attached as well.
When I get a little more time I will read the entire link you provided, however it may just get more confusing with all the lawyer mumbo jumbo too...

 

[SWAMECH]

During closing arguments on the B6-NK trial, one of the lines of questioning from the judge hint at approval with divestitures. He then disclaims it saying it's part of the thought process.

Still, I'd be surprised if it wasn't approved with conditions and goes against the DOJ's objections. They haven't substantially blocked too many mergers, and this Administration doesn't seem to have too many wins in general when it comes to actual interpretation of law and statutes...

JetBlue-Spirit Judge Weighs Divestitures, Considers Injunction Limitations | Aviation Week Network

The Judge, noting the industry's post-pandemic dynamic, said he was “having trouble” with a permanent injunction and was “hesitant” to implement the measure.

aviationweek.com

It does appear to be moving more and more towards an approval as you first suggested. Noting that the assets concessions were a big move towards the possible approval E.
They are saying we will find out this month on the Spirit/JB merger.

https://r.search.yahoo.com/_ylt=AwrhbhYhIpRl7wIQFzRXNyoA;_ylu=Y29sbwNiZjEEcG9zAzEEdnRpZAMEc2VjA3Ny/RV=2/RE=1704235681/RO=10/RU=https%3a%2f%2fwww.msn.com%2fen-us%2fmoney%2ftopstocks%2fthe-jetblue-spirit-merger-ruling-will-shake-up-the-airline-sector-the-stocks-to-watch%2far-AA1mkTmB/RK=2/RS=W_CNQRN7Y_8Av...hFgY4DqdAek-

 

[eolesen]

Looks like I was wrong. Not sure if there is a chance on appeal, but it's possible. Statistically, anti-trust cases have a 50-60% success, but I'm not sure how that weighs in without the FTC being involved. There are too few mergers outside of the FTC's reach to really get a sense for that.

Bankruptcy by one or the other would change the rules. With the roughly $500M breakup fee and legal fees incurred on the trial, there's a financial incentive to push the appeal. Also not as clear if the new CEO and her staff are as excited about the merger.

 

[SWAMECH]

That's ok E, none of us can be right all the time, especially when dealing with this admin currently. I'm a little baffled to the ruling myself because now, if they don't win the appeal it looks more than likely for a possible BK and/or liquidation for Spirit and they will completely go away just like they would have with the merger, but, a merger would have saved more jobs IMO.
Spirit ants the appeal to go through. JB, like you say, maybe not so much now. I would think the new CEO would want to still grow in size in order to better compete though. JB has really missed out on, now, 3 past mergers or acquisitions. Although this time they stepped into the middle of a merger this time instead of being the victim of another airline bullying their way into one.
Hate seeing any airline go away when they had a chance at a merger, so I guess I'm still in favor for the appeal to go through for them, but JB needs to make it's mind up quickly on what they want to do, or not do...

 

[SWAMECH]

Wow! Court says for airlines to have their pre-hearing briefs filed by Feb 26. With a response by the US justice department due by April 11. The gov gives the airlines 3 weeks, roughly, and give them selves approx a month and a half to respond. US justice dept. why not cut time frame down to help the airlines out in meeting their deadline goals of the agreement? You know, give a response within the same approx 3 weeks after briefs are filed by airlines, hellooo...

Court sets June hearing for JetBlue and Spirit appeal of a ruling blocking their $3.8 billion merger

JetBlue and Spirit Airlines will have to wait until June before a federal court hears their appeal of a ruling that blocked JetBlue’s proposed $3.8 billion purchase of the smaller rival. The appeals court ordered the airlines to file their pre-hearing briefs Feb. 26, with a response by the U.S...

finance.yahoo.com

 

[SWAMECH]

Looks like someone knows the merger will get approved after appeal.
Carl takes a 10% ownership with over 33 million shares. And of course the stock rises on the move by Carl.
Now we wait and see if it was a good move...

JetBlue (JBLU) Stake Bought by Activist Investor Carl Icahn

Carl Icahn's decision to hold a stake in JetBlue (JBLU) comes immediately after the new CEO taking charge.

www.yahoo.com

 

[eolesen]

Or, Icahn has faith in the new leadership and its ability to get back on a path of organic growth.

Icahn gets two of 13 board seats, which long timers will see as a threat.

 

[SWAMECH]

Yes, E. As in past, when he does gain board seats, he does seem to always expect and get changes made in his favor or stock price increases. But that would be good for all who have invested into JB coming out of all this a winner. Time will tell and we shall see. I'm still thinking the appeal will go thru unless JB just doesn't want to move forward to being too costly as well as other reasons too.

 

[CorvetteMan]

The only thing Icahn cares about is making money.

He doesn’t care about the thousands of lives he’s ruined in the airline industry.

He’s no different than Lorenzo.

 

[SWAMECH]

Hey E, looks like they are calling quits on the JB/Spirit merger. Probably a good decision by JB IMO.
Maybe Frontier could hook back up with a merger with JB now, thinking out loud here...

JetBlue and Spirit are ending their $3.8 billion merger plan after a federal judge blocked the deal

JetBlue Airways and Spirit Airlines are ending their proposed $3.8 billion merger weeks after a federal judge blocked the deal, saying it would hurt consumers who depend on Spirit's lower fares. JetBlue said Monday that even though both companies still believe in the deal, they were unlikely to...

www.yahoo.com