Flyby1206

I think the main thing is an airline's long term health relies on it's ability to spread costs over a larger pool of resources (increased wages being good for you and I). Over the past 20+ yrs JB has been an east coast airline with a focus on NE and Florida. We have done a great job growing those segments as much as we really can. BOS/JFK/FLL are pretty packed in terms of gates/slots and there just isnt much room for growing there.

The NK merger brings the opportunity to grow outside of the east coast. Could we do it without NK? Sure, but it would be a longer and equally expensive process. Ordering a bunch of NBs for delivery 4-6yrs from now while we continue to watch the legacies eat our lunch (dont forget Airbus list prices have risen dramatically since when NK put in their orders)?

Sure, JB might eek out a profit in 2024, hooray! But what about 2034? How do we grow out of our lil old east coast airline mentality?

Chimpy

I hope your CEO feels the same. Seems like her silence is signaling her lack of enthusiasm. Or maybe she’s just busting her ass behind the scenes to make this happen. Who knows

Flyby1206

Yeah I dont think she is entusiastic about it at all. If there's a chance at winning it will be because of the top appeals lawyer that NK hired. She's been sending emails about focus on operational reliability, and network changes that center around retrenching in our existing hubs. Although, that's been the way our emails have been for the past decade+ so it doesnt necessarily indicate a real shift.

DrSmacFum

to be FAIR to her, how much can she really tell us into this appeal thing is over and done with?

Bluedriver

That's the cost side.

On the revenue side, this merger would have given JB a much larger presence in FLL, and higher market share in a market usually translates into higher average fare, more revenue, and more loyalty to the frequent flyer program, which is often an airlines main revenue and loyalty driver.

The much larger and more diverse network nationally, would also drive a higher take-rate on the JB credit card and frequent flyer program, especially by corporate customers, but a higher proportion of all customers anyway. Again, driving revenue and loyalty.

Network diversity, so one East coast hurricane or one Noreaster doesn't cripple the ENTIRE network, and shut down all revenue production for multiple days.

Spirit came with gates all over the country, and ready made in use pilot training capacity.

Spirit has a large order of NEOs, an order that was signed when prices are much lower than an order placed today...

But back to revenue, and why this merger would have been good for JB, look at the 4 of the 5 most profitable airlines the last few years. They are the biggest, with the most widespread networks (scale) and they have large frequent flyer programs. And no coincidence, they are all products of multiple mergers.

​​​​​And for pilots, besides the order book, would have been great leverage in JCBA.

​

Chimpy

now now, only massive Legacy airlines are allowed to merge........

cantankerous

She's a lawyer too, or was so I'm sure she's holding her cards close.

Bingo, now we are limited to "organic growth" while retiring the 190s, parking the 220s and 321 NEOs with engine issues. I didn't know what to think about merger not going though. I kinda got onboard with the, "oh were better off" crew but looking at it objectively that's just a lot of cope. The merger, while expensive would have been immesuably beneficial long term.

Thanks Delta.

Roy Biggins

It's over. Time to move on. There's no more courtroom. Let this thread die. Now it's whatever Joanna is gonna do to grow this airline, which probably isn't much outside of adding a few more SDQ turns.

Chimpy

Being the Judge liked to quote Yogi Berra, here's another one of his qoutes,.... "it ain't over till it's over"

Flyby1206

The future ain’t what it used to be.