Unsubstantiated rumor--merger talks in Dallas

[Piedmont1984]

I asked it before but didn't get much discussion. I know economies of scale/big players are all important but what about JetBlue? Good fleet match....if we get rid of the LGA slots/terminal....lots of JFK flights and new terminal. A little messier but Alaska would be 'barbell' part II. Seattle hub would be nice. There is always Fontier with Denver. LAS and PHX losing flights. Any insight on the combos would be fun for me.
If non of the big girls want to dance... we would be left out of the party.

Even if we were to merge with JetBlue, as well as Alaska and Frontier - we would still be a second tier airline in terms of market share and economic clout.

Still, our cheap uniforms are beginning to wear out. Sure sign that another merger is afoot🙂

 

[Dont call me Shirley]

I asked it before but didn't get much discussion. I know economies of scale/big players are all important but what about JetBlue? Good fleet match....

B6 and US are horses of very different colors indeed. The cost of installing PTVs on US fleet would of the smaller problems.

 

[redheadtempe33]

I asked it before but didn't get much discussion. I know economies of scale/big players are all important but what about JetBlue? Good fleet match....if we get rid of the LGA slots/terminal....lots of JFK flights and new terminal. A little messier but Alaska would be 'barbell' part II. Seattle hub would be nice. There is always Fontier with Denver. LAS and PHX losing flights. Any insight on the combos would be fun for me.
If non of the big girls want to dance... we would be left out of the party.

While you are right that Jetblue is a good fleet match (and provide JFK and BOS hubs), there are other things to consider. Many people fly JetBlue not only for price, but for the 'experience'. Would US Airways be willing to install PTV's and XM Radio on the rest of the fleet? I doubt it.
Would US Airways be willing to not charge for the 1st bag as JetBlue doesn't? I doubt that as well. A merger with JetBlue would probably drive a fair number of people away as US Airways instituted their policies. That said though, stranger things have happened.
The same could probably be said for Frontier, plus with Frontier, we would be throwing ourselves into the WN/F9/UA bloodbath that is Denver. And we have a fairly good relationship with UA and Republic. Why screw that up?
I don't really know enough about Alaska to comment, other than I seriously doubt Alaska would be open to a merger and Alaskan politicians seem to have a lot more power than their population warrants, and they would block any takeover.

 

[RowUnderDCA]

I don't wish to really wade into this, but........

JFK is beginning a phase of airfield disruption.....

PHL will enter a phase of airfield disruption sometime in the future.....

could they compensate for each other with some sort of combination?

I don't see any B6/US combination, but the question of airfield/terminal capacity disruptions/market share and connecting opportunities is intriguing.

 

[CallawayGolf]

While you are right that Jetblue is a good fleet match (and provide JFK and BOS hubs), there are other things to consider. Many people fly JetBlue not only for price, but for the 'experience'. Would US Airways be willing to install PTV's and XM Radio on the rest of the fleet? I doubt it.
Would US Airways be willing to not charge for the 1st bag as JetBlue doesn't? I doubt that as well. A merger with JetBlue would probably drive a fair number of people away as US Airways instituted their policies. That said though, stranger things have happened.
The same could probably be said for Frontier, plus with Frontier, we would be throwing ourselves into the WN/F9/UA bloodbath that is Denver. And we have a fairly good relationship with UA and Republic. Why screw that up?
I don't really know enough about Alaska to comment, other than I seriously doubt Alaska would be open to a merger and Alaskan politicians seem to have a lot more power than their population warrants, and they would block any takeover.

Alaska Airlines is headquartered in Seattle, WA not Alaska. It’s a moot point anyway because US is not looking to merge with a carrier smaller that itself. The only mergers that make competitive sense are with AA, UA, or CO.

 

[mrman]

While you are right that Jetblue is a good fleet match (and provide JFK and BOS hubs), there are other things to consider. Many people fly JetBlue not only for price, but for the 'experience'. Would US Airways be willing to install PTV's and XM Radio on the rest of the fleet? I doubt it.
Would US Airways be willing to not charge for the 1st bag as JetBlue doesn't? I doubt that as well. A merger with JetBlue would probably drive a fair number of people away as US Airways instituted their policies. That said though, stranger things have happened.
The same could probably be said for Frontier, plus with Frontier, we would be throwing ourselves into the WN/F9/UA bloodbath that is Denver. And we have a fairly good relationship with UA and Republic. Why screw that up?
I don't really know enough about Alaska to comment, other than I seriously doubt Alaska would be open to a merger and Alaskan politicians seem to have a lot more power than their population warrants, and they would block any takeover.

Your making the wrong assumption. IF a merger or takeover would happen it would be Republic, JetBlue or Alaska running US. The "We" in US would be gone.

 

[redheadtempe33]

Your making the wrong assumption. IF a merger or takeover would happen it would be Republic, JetBlue or Alaska running US. The "We" in US would be gone.

Good point. I was only considering it from the 'US' point of view, though market cap wise - LCC, JBLU, and ALK are all worth about the same - 1.3-1.5 billion, so a merger with either party as the controlling entity is not unthinkable.
Republic's market cap is 200M (which surprised me). I thought it would be higher.

 

[gaucho99]

The only mergers that make competitive sense are with AA, UA, or CO.

Exactly. Doug Parker was asked in a recent crew news session about a potential merger with an airline like Jet Blue and his response was that it isn't really an option. The reason the airline industry needs to consolidate is because there are too many Legacy carriers. Merging with Jet Blue would not reduce the number of Legacy's.

 

[back2CLT]

They may not be a legacy but they control a large market share in high-business travel markets....in fact, if I was US Airways, I wouldn't even change the business model that much, at operate JetBlue as a subsidiary, sort of like TED, but not. 🙂

In a sense, you could make JetBlue more profitable by reducing some back office functions...I would also restart BOS-Europe to select markets under the US name, and get the JetBlue feed....

In a sense, you wouldn't have to do anything dramatic to either carrier, and could reduce expenses at both in non-customer facing functions.

My only reservation is that once they merged and if US management was in control, the wouldn't be able to resist the urge to tinker with JB.

And yes, I know that JetBlue has a higher market cap, but the only way the deal would work is if US ran the show....it's certainly not impossible for US to buy them in an LBO, but the capitral markets are pretty tight in that area right now.....still, this is the combination that I have been pushing since I started posting here.....if not this deal....then US should stay on the sideline and reap the benefits of contraction through mergers among their "peers".

 

[BoeingBoy]

in fact, if I was US Airways, I wouldn't even change the business model that much, at operate JetBlue as a subsidiary, sort of like TED, but not. 🙂

Other than during a transition period during a merger, US can't do that due to contractual scope language.

Jim

 

[SparrowHawk]

RE: US & B6 Merger

On the surface to a customer this looks very enticing. The fleet types look the same and there is LH's investment and US already in * alliance.

Question(s)

Are the fleets compatable engine wise and all of that stuff which drives a ton of cost out of an enterprise.

Are the B6 workers largely unionized or not?

Do the route structures overlay well or poorly?

In my limited view it seems that what looks good on paper tends to turn into a nightmare. DL/NW seems to being going smoother than US/HP has and in a shorter time frame.

 

[nycbusdriver]

The cost of installing PTVs on US fleet would of the smaller problems.

That would NEVER happen. Tempe would pay millions to have the systems removed fro the JetBlue fleet. (ALong with the closets and any other amenity that might attract revenue.)

 

[PHL]

Doesn't JetBlue own the company that designed their IFE? I thought I read they bought that early on when they realized it was such a crucial part of their business.