VA Weighs Sale After Receiving Interest
#21
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#23
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I wouldn't be surprised if there is no airline looking to purchase VA and it was a hedge fund of some sort instead. Maybe if PAR and Altimeter Capital don't get what they're looking for with United....
#24
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#25
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This is a reduction in the number of airlines out there; more oligopoly consolidation. It could be anyone from a legacy to an LCC/ULCC.
Cush's roots with American make it a potential buyout. Dougie used to work with Cush. Then again, I wouldn't rule out Delta due to their growing west coast presence. The legacies are printing money right now so it's not like either airline couldn't afford to pay cash for VX. Both Delta and American fly airbi.
The only airline I'm ruling out at this point is LUV since airbii and guppies don't mix.
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#27
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I'm not sure American and Delta would be allowed to purchase anyone, at least for the forseeable future. There's already enough unrest amongst consumer advocacy groups about the lack of competition. Of course the same consumer advocacy groups cry about the lack of passenger freebies.
Geography aside, I'm not sure the DOJ regulators would allow Delta or America to grow much bigger until United and Southwest catch up (United domestically, SWA internationally).
Geography aside, I'm not sure the DOJ regulators would allow Delta or America to grow much bigger until United and Southwest catch up (United domestically, SWA internationally).
#30
I don't think so. I think we'll either see two ULCC's or no ULCC's. I'm not so sure regulators would sign off on Spirit purchasing Frontier and remaining the sole ULCC. As much as I think the terms ULCC, LCC and legacy are not really relevant anymore, the perception of lawmakers and advocacy groups would have a lot to say if it was only Spirit left in the market place now. Frontier is offering to become an equal competitor eventually, not sure if that will be allowed to be suppressed.
There may be cause or consideration for the acquisition of Spirit and Frontier by a legacy to model the European model, i.e. Lufthansa and Eurowings (formally Germanwings) but there are hurdles to that as well.
There may be cause or consideration for the acquisition of Spirit and Frontier by a legacy to model the European model, i.e. Lufthansa and Eurowings (formally Germanwings) but there are hurdles to that as well.
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