ZapBrannigan

1. Every email from GK is focused on Spirit being SW greatest threat. Spirit CEO used to run AirTran.

2. Spirit already operates a 'hub' in FLL with service to every piece of sand with a runway on it in the Caribbean, Central America, and Northern South America - about 50 destinations.

3. Culturally the companies are a fit. Even though Spirit favors the a'la carte service, both companies are basic transportation with few frills. Spirit customers would benefit from better customer service (and more legroom) if the two were to merge.

4. B6 and Hawaiian are not culturally a fit. B6 in particular is a very progressive company, willing to spend money to improve both customer and employee experience. They are growing vegetables in a rooftop garden at their terminal in JFK to serve in their Mint class dining. They built a hip, modern hotel for crews to stay at when they are in Orlando for training. They are not afraid to spend money to improve passenger experience in airplanes and in gates. Most importantly though, B6 is an aspirational brand. It is hip and trendy for young people and Hollywood elite to Tweet about riding JetBlue. Not so much WN. The cultures are so divergent I believe that a combination would be another civil war. (Like Piedmont/USAir)


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ZapBrannigan

Spirit route map




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ZapBrannigan

On the B6 front, if you ignore the cultural differences. They have profitable hubs in BOS, JFK (both valuable real estate) and FLL where their terminal is much nicer than WNs... although WN is renovating.

Their FLL hub serves all of the Caribbean and into northern S. America.

Their red eye flying is a substantial percentage of what they do, to include red eye island turns. They will depart from the Northeast in the evening, fly to say Aguadilla PR (for example) turn at 2am, and fly back in time for the morning push. I can see SW embracing this money making opportunity that is a non traditional use of their new red eye language.




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ZapBrannigan

Here is Hawaiian. Seems way, WAY out of WN's wheelhouse.



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RJSAviator76

I could see Spirit... but I'm not so sure how they're a cultural fit - they consistently rank rock bottom in customer service/satisfaction. They also nickel-dime every passenger. We don't do that despite Wall Street pressures.

Personally, I hope it's just all empty talk and we just grow organically.


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WHACKMASTER

COMPLETELY agree with Zap about Spirit. I think they're the AirTran of 10 years ago, and what did GK apparently spout multiple times before the merger was announced? "We have to worry about AirTran as a threat". Well, I think Spirit's grown to the same level and are even more fierce and profitable than the last airline SWA bought.

I wouldn't call it a done deal but I can guarantee you one thing.....Bob & Gary are definitely talking or have at least talked.

TexasFlight

Great info Zap. Never thought about it that way. I have a buddy, whom is very knowledgeable about the industry, with an interview coming up at Spirit. He is convinced that it will ultimately mean a job at SWA.

ZapBrannigan

Just another pilot with a broken crystal ball. It's fun to speculate though isn't it?


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e6bpilot

I wouldn't count your chickens on that one. I don't think there is going to be another merger until the next downturn and then it will be a fringe player that operates 737s. SWA makes acquisitions of companies on the down and out who can provide lots of value without a lot of risk. Look at Morris, etc.
What do we gain from a merger right now? Airline stocks are on a tear, making any airline pretty overvalued in terms of cash price. A fleet of airbuses is going to add a lot of complexity and cost that SWA doesn't need. What does Sprit do that we can't in terms of ability? We fly to a lot of the same places and they really don't cover any territory that we can't if we truly wanted to.
The advantage to Spirit is in their costs and ancillary revenues. It just isn't us. Our thing is providing a known quantity. You get a seat, a very robust domestic network, free bags, and good customer service.
I have flown Spirit and other than a ride on the jumpseat (way more comfortable than a pax seat btw) I won't fly them again. It was a debasing, frustrating experience. Other than their staff, which is wonderful, the whole experience sucked.
Yes, we would be knocking out a major competitor, but at what cost and what true advantage to us? Just like the AirTran merger, we helped Delta in terms of competition way more than we helped SWA. I am sure the legacies would love if we took out a ULCC.
Look at the three ULCCs merging in one or more combinations to a mega A320 ULCC a la Ryan.

Ronin47

How about "Copa"? All 737s, South America routes and the airline can be bought for pennies on the dollar!