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JetBlue to Buy Spirit for $3.8 Billion After Months-Long Fight for Discounter

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JetBlue Airways has reached a $3.8 billion deal to buy Spirit Airlines in a takeover that would create the country’s fifth-largest airline and remove a fast-growing budget carrier from the market (www.cnbc.com) More...

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jbsimms
James Simms 4
Get those resumes sharpened up & ready
LeanderWilliams
Why can't these airlines just buy assets? If I had the money I would buy new aircraft, instead of a substandard airline. Jet Blue should have analysts that know that if they expanded into some of the markets they are trying to acquire with these low-cost, no-frills airlines their reputation should almost immediately get them a lion's share of the market.
jafrank
jafrank 7
Except that gates, and landing slots, and people to operate and ground support those new aircraft, are not unlimited resources.

If JetBlue decides that they want to start servicing BOS-DAL, they can't just simply buy another couple of planes and start flying there - they would pretty much have to buy or merge with Southwest, Delta, or Alaska to get in there

Besides, they are getting 180+ Airbus aircraft for their $3.8B, plus spares and other assets. Could they buy that many (new OR used) elsewhere for that money?

Finally, it seems very unlikely that this will be an all-cash deal - they will be buying off stockholders with shares of stock in the newly merged company. That works great for buying a corporation, but it doesn't seem likely that Airbus will accept JetBlue shares as payment for a new plane.

It sucks on a lot of levels, but from a financial standpoint it's a much more cost effective method to grow
LeanderWilliams
Probably half the cost of the merger will be paint on all those bananas.

FlightSeer
FlightSeer 1
That might be too logical and minimize the risk, to boot! Maybe they want to live dangerously????? :- )
ed7778
Sounds like a bargain when considering Musk's bid of $44B for Twitter.
bfambrough
Bill Fambrough 2
Hope someone has enough Jet Blue paint to get rid of the canary yellow of SPL.
n7777r
Derek Vaughn 1
This will be pretty messier than people think.
DonDengler
DonDengler 0
Two losers

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