Clear Right

EagleFly I won't even respond to, because his post doesn't deserve an educated response. I never said anything about Seniority List Integration. What I did say is JetBlue is now too big and too successful to be acquired. B6 has an enterprise value of roughly 3.2Billion, with a Market Cap of 1.4Billion and roughly 1.2Billion in cash. SWA bought AirTran for something like 1.4Billion. They couldn't afford to "Acquire" JetBlue unless they used all of their roughly 3.2Billion in cash. That means they would have to "merge" and both parties have to play nice in a merger. All I am saying is that is not the type of corporate transaction SWA likes to make. They like a bargain, where they pull all the strings. I never said B6 wouldn't be involved in future consolidation, I simply said SWA is most likely not going to happen, and AMR currently can't afford it.

Oh, and by the way, since you all brought it up, not me...I do think B6 management would fight for their employees if a transaction did occur. I know this is foreign to most, but some employees actually have some faith in some management teams. That is my opinion, and my opinion only...many at B6 disagree with me, but others actually may agree.

aewanabe

I really don't want to get into a johnson-measuring contest here; if you research my posts I think you'll find a healthy skepticism about the management at JetBlue. For example, with a stock price languishing in the low four-dollar range I am convinced the board would burn the "caring" value in a heartbeat if tendered an offer that seriously betters that price: in fact they have a required fiduciary responsibility to do so.

You actually said "the happy place" was where one MUST go to be a JetBlue pilot, which is what I'm disputing. I assume the worst would happen for us in a T/E event, but I definitely would go in swinging against any pilot group that wishes to classify me as a temporary employee. (And I would do so with my lawyer alone, with my miniscule share of our "merger fund" in all likelihood, but I digress). In 2008, the language of our PEAs was updated as follows:

The listed paragraph has standard boilerplate language limiting what the company may classify as a fireable offense.

At any rate, I'd far rather have a CBA vs. an individual agreement. Just trying to get the best information out there.

B757200ER

Just razzin' ya, no problem. Hey, what's a Legacy anyway? Is that when you pledge a fraternity and get in automatically because you had a family member there before?

shiznit

With a market cap of 1.4 Bill, the pilots of DAL/NWA could have sold the shares they got in the NWA/DAL merger and had more than enough to buy the entirety of JB at that price. (obviously the price would have gone up if a buyout attempt happened).

Just saying that if you think $1.2 billion in cash and $1.4 billion in market cap is safe, you are not familiar with how large corporate transactions work. Ask any NWA employee about Al Checci and the leveraged buy-out that happened there.

The acquirer can say to the shareholders: "I'll give you your 1.4 billion PLUS another 40% if you agree to the transaction." so the shareholders split $1.96 billion. You do this by giving them the cash from the acquired operation plus a little bit of stock (from the acquiring company) to make up the $1.96 billion.

It costs the acquirer very little, since the enterprise value is above the cash price, and you have cash in the acquiring operation to fund the ongoing operations (no actual outlay if the operation is cash flow positive.)

If JB is as profitable as you say and is valued like that, they most definitely are a takeover target. Let's be honest, the shareholders as a whole probably don't care what happens as long as they get a return on their money.

RI830

Thank you sir...may I have another!!!
Kevin Bacon - Fraternity Paddle - YouTube

flybywire44

AMR would enjoy US Air's 2.5 billion in unrestricted cash.

reino757

MCfly... in "reality" there is NO difference in a merger or acquisition... One company buys another, period. only exception is a "hostile take over".
delta/NW US/piedmont AW/US CO/UAL AA/TWA DL/WE
All the friggin same....
one company buts another with boards approval.....