DOJ Options for JetBlue/Spirit Merger
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Young raised the prospect of further divestitures by JetBlue, which has already agreed to sell-off gates and slots at airports in New York City, Boston, Newark, New Jersey and Fort Lauderdale, Florida, to try to address U.S. regulators’ concerns.
If they cut back in Boston, they just add in Worcester???
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3 thoughts on “DOJ Options for JetBlue/Spirit Merger”
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Judge blocks JB /spirit merger. Worcester JB flights could be affected. JB loosing cash like crazy. Spirit/ frontier merger would be easier for the government to allow and maybe better for Worcester. Let’s see what happens. JB CEO steps down soon/ Worcester connection steps in.
I believe JetBlue will do just fine, in regards to Spirit, in my opinion the airline is done either way. What analysts are saying below.
“Tuesday’s decision has also thrust Spirit’s near-term health into the spotlight. “The focus is likely to be on Spirit liquidity,” wrote J.P. Morgan’s Baker. “We see little valuation support for Spirit in the absence of a merger, and for some time have envisioned shares taking up residence in the vicinity occupied by Frontier.” Frontier is not in a position right now to take on a Spirit acquisition and would be better served to re-engage with Spirit through a bankruptcy process if one materializes.”
“We see ongoing cash burn over the next several years at Spirit, and a company that needs to continue to raise capital to survive,” Cunningham added. “The real issue here is that if Spirit does go bankrupt, it seems more likely to be a Chapter 7 filing than a Chapter 11 one. Chapter 7 would result in the permanent reduction of supply as lessors would look to reallocate aircraft out of the US.”
An appeal will be filed.
https://triblive.com/local/regional/jetblue-spirit-say-they-will-appeal-ruling-that-blocked-merger/