Originally Posted by westcoastj

So i'm looking at the stock data as a complete noob, but I'm curios what you all think...

When the merger was agreed upon for Frontier to buy Spirit the stock price was Frontier: $12.39 and Spriti was $21.73... I don't know what the market cap was at the time, or if that even matters.

I guess my thinking is as it stands, if Frontier can continue their stock price recovery (even a little bit) I see no reason they could not afford to buy Spirit. That's what I heard for the last 6 months, that Frontier was worthless and could not aquire Spirit anymore.

Frontier is trading now at $7.57 and Spirit is all the way down too $6.65...,

If anything, Indigo would be getting a steal if they could buy them for maybe 10-15 bucks a share.

How long would it take for Frontier to try to secure an aquisition if the apeal is struck down by the courts?

I do think there's a case to be made that combining to become a larger ULCC is good for the consumer. When you think about the opposing side, Jetblue is not really a LCC... They have premuim lie-flat seating on international flights to euorpe. It's not even comparable to someone like Frontier who is a full blown ULCC.

Okay, i'll step off my soap-box, but seriosly... I would be schocked if they did not put a bid in by the end of the summer/fall

Originally Posted by covid19

I'd expect them to see how the election plays out. So nothing before Nov.

Originally Posted by Chimpy

could always start the process 6 months before and by the time Sleepy Joe wants to block it, he’ll be gone. The biggest issue from the courts we’re Eliminating a ULCC. F9/NK, is not eliminating a ULCC.

Originally Posted by Chimpy

could always start the process 6 months before and by the time Sleepy Joe wants to block it, he’ll be gone. The biggest issue from the courts we’re Eliminating a ULCC. F9/NK, is not eliminating a ULCC.

Originally Posted by hercretired

F9+NK= two ULCCS, Spirit, and Frontier, becoming one- Frontier.

F9+NK results in the elimination of a ULCC (Spirit). That is how the current administration will see it.

Originally Posted by CatPilot1

I thought the judge/administration was worried about the elimination of ULCC seats? JetBlue was to reconfigure Spirit planes with less seats. Frontier + Spirit wouldn’t decrease the amount of seating for poors.

Originally Posted by hercretired

F9+NK= two ULCCS, Spirit, and Frontier, becoming one- Frontier.

F9+NK results in the elimination of a ULCC (Spirit). That is how the current administration will see it.

Originally Posted by Chimpy

ehh, hard to say. yes NK is gone, but F9 is now twice the size. It's apples to Oranges compared to NK/B6. No idea if F9 would be interested but reading through the Judges ruling, It seems it would face less opposition is all.

Originally Posted by hercretired

From the DOJ press release:

https://www.justice.gov/opa/pr/justice-department-statements-district-court-decision-block-jetblues-acquisition-spirit



Anticompetitive. Hold that thought, lets look at the Clayton Act

https://www.justice.gov/atr/antitrust-laws-and-you



What exactly is "anticompetitive"

Harvard Law journal: https://harvardlawreview.org/forum/vol-130/antitrust-law-is-not-that-complicated/

They define it as:



In other words, offering a better quality widget, with better customer service, thus resulting in increased profits because you charge more, but the customer still comes because he thinks you are better, is not anticompetitive. That is "business 101."

But Merging with a competitor, resulting in your ability to be the only guy in town, and potentially increase prices whenever you want, is anticompetitive.

Knowing what we know now, the courts will not permit a super ULCC to exist