Frontier to buy Spirit: New Representation elections

swamt

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And BAM! JB gets involved with a bid for Spirit. Outbidding Frontier by 700M. JB doesn't want to be left out for a third time this time around. Putting this strong of an overbid in means they are serious about merging with Spirit. Spirit investors will see this much more pleasing of an offer. Question now is will Frontier throw a counter offer to keep them in the game?

Hey JetBlue Mechanics; You guys may wanna step up that grass roots effort and get AMFA as your representing union for the merger and getting a deal done for merging the seniority list while someone is looking out for your best interest...


 

eolesen

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Frontier can't afford to match. This was a 40% premium on top of the Frontier deal.
 

swamt

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I also think that a tie up with JB would be way harder to get approval from regulators than one with Frontier for sure. JB is already being sued for the AA-JB hook up and now they want to throw this possible merger into the tank, not good timing to say the least, maybe it's a move to make one of the two to happen for JB, kind of a risky move if ya think about it.
I also don't think Frontier would have to beat or even match the JB offer, but if they just simply increase to say 30ish price for the stock they would probably prevail over the JB tie up with Spirit. Still waiting to hear the first peep out of Spirit investors and leaders, interesting trail of events and fun to follow...

 

swamt

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A bit more details on the possible merger coming. Some added info that JB is in fact going to continue with the JB/AA tie up as well as seek out this JB/Spirit merger. Now. IMO, this will get great scrutiny by the DOJ and Senators of course. Might get pretty interesting on the concessions list...


 

swamt

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It appears to be official now. Just this morning Spirit decides to go with Frontier bid and rejects JetBlue's bid. I too thought this would be better, but didn't know if Spirit would take the $$$ and run or if they would do their due diligence for the investors and stay with the better offer for the investors. I also believe the newly merged Frontier/Spirit airline will become larger than JB is currently when and if all done correctly once the expanding becomes reality.

Hey Spirit Mechanics; It's time to get the vote on for an AMFA representation before the merger is completed, you damn sure don't want to be represented by the teamsters, just ask the United mechanics now looking to get rid of the teamsters at their carrier as we did at SWA long ago and never look back. This merger will more than likely go thru, so prepare and get yourselves represented quickly...


 

swamt

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swamt

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And now the vote will go to the share holders for a their say so. Big step to jump into #5 spot just by a vote and compete with the bigger 4 airlines at the top. Hopefully by then we will hear from the NMB that an election is under way and/or almost completed @ Spirit for the AMFA representation "just in time" for the merger. And it will be history repeating itself again with a head to head post merger vote coming from the Mechanics on which union they will prefer to have represent them. Pretty sure AMFA will prevail as they just received more than 50% of the combined Frontier and Spirit combo, and I can assure you there are some mechanics at Frontier that are more than willing to part from the crooked teamsters who has big past history of agreeing to outsourcing, and overseas outsourcing, with the companies that they are suppose to fight against. Just as they always did at SWA for years and now they just did it again at United with the Airbuses. Get your popcorn ready folks for another head to head union show down. Let the games begin...


 

swamt

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JetBlue goes hostile on Spirit shareholders. JB refuses to get left out again...


 

swamt

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And Spirit BOD asked it's shareholders to hold off with their response to the hostile newer bid from JB. Getting a bit more interesting...


 

swamt

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F/A's have sent in their support of the merger of Frontier and Spirit. Read below for who represents who. More and more movements will go forward as this merger progresses. I cannot express enough for the Spirit and JetBlue Mechanics and Related to get organized by a union representation PRIOR to the merger. Just look at how well the F/A's are represented at both carriers and how mellow and calm they are going into this merger because they ARE represented. Got those cards signed and in for AMFA representation @ JetBlue and @ Spirit so that both sides are represented. By all means do not go in not represented, period...


 
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eolesen

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You're naive if you think union support for one bid or the other will matter to shareholders.

For those banking on the BOD supporting one over the other, all I have to say is "Elon Musk".... Twitter board was against the deal right up to the minute they were for it.

End of the day it's money to shareholders and investors that will matter, not the employee's best interests.
 

swamt

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You're naive if you think union support for one bid or the other will matter to shareholders.

For those banking on the BOD supporting one over the other, all I have to say is "Elon Musk".... Twitter board was against the deal right up to the minute they were for it.

End of the day it's money to shareholders and investors that will matter, not the employee's best interests.
Totally disagree E. Look at how AA gathered all the support from both unions at both carriers for a smoother union's approval for the merger. If you get unions that are at odds and do not want to do a smooth transition (especially with some unions contracts with merger language) it could and can cause very long dragged out nego's and therefore dragged out for shareholders to reap their rewards until all is final. The BOD at AA was in fact getting the approvals from union leadership and members to show the BOD that they have unions approvals for a smoother transition into the merger to, in fact, ease the minds of the shareholders. Otherwise, why else would AA spend so much time and money to get PRE-approval of the unions and members BEFORE they vote on the mergers???
 

swamt

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JetBlue gets second black eye from Spirit's BOD unanimously rejecting the hostile takeover bid saying it actually got worse.
JetBlue may go down, yet again, in the merger world as a failure for the second time facing other airlines interested as they did in the Alaska and Virgin merger. JB may wanna start seeking out SC, Allegiant, or even one of the newer LCC's that have just recently come out. It's the only way they can grow so quickly to keep up with the big boys...


 

swamt

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Sure hope Frontier and Spirit get what they want from the shareholders. Pretty sure the BOD is adding literature to help better explain the better move to go with Frontier and not JetBlue. With having both airlines full support as well as some of the unions also voicing support and smoother merging their groups, it should be a no brainer, however, you will get some older shareholders that might look at taking the money and getting out instead of waiting for the synergies later.
Speaking of synergies, I believe this is the first time where I have read where the Frontier/Spirit synergies would be right $500 mil. I did read the original synergies boasted by JB at $700 mil with the first offer. I think JB's estimated guess is more of a guess, and a tactic to make their bid look more attractive to shareholders. By size the 3 airlines are only a 2% difference after merging, which would better represent the synergies differences in the long run. Also the JB synergies DO NOT include any concessions that may have been requested or demanded by regulators in order for JB/Spirit to combine. So as far as synergies are concerned I see a more realistic of either merger of the three to be in the neighborhood of 5-600 million when it is all said and done.
But now, as indicated by article below, it is in fact in the hands of the shareholders and we shall all see soon...


 

eolesen

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Totally disagree E. Look at how AA gathered all the support from both unions at both carriers for a smoother union's approval for the merger.
Entirely different situation. AA was in bankruptcy and the unions at AA were on the unsecured creditors committee if I recall so they had veto rights over anything that was going to happen. Shareholders had no rights in bankruptcy.

Frankly, the way the market has been heading, Spirit's board is opening themselves up to shareholder suits if they don't give the JBLU bid a fair consideration. The value of the airline has dropped along with the market and the rise in fuel prices.

Taking it to a tender offer is indeed risky, but nobody holding an airline stock is getting a payday anytime soon. If JetBlue offers enough to entice 50%+1 shareholders to sell their shares to JBLU, it's game over.