JetBlue TrueBlue - B6-DL Merger or just galley talk?

Last week on a JFK - SJU flight, the FA told me that B6 was expecting a hostile takeover attempt from DL. The FA had no further info.

Anybody hear anything about this?

not surprising considering how badly B6 has beaten up on DL in NYC, but B6 still has a 1.7 billion market cap, so any hostile bid would soak up a decent chunk of DL's cheap stock and available cash

doubt it will happen, but if it did, I'd be on VX a lot more

not surprising considering how badly B6 has beaten up on DL in NYC, but B6 still has a 1.7 billion market cap, so any hostile bid would soak up a decent chunk of DL's cheap stock and available cash

doubt it will happen, but if it did, I'd be on VX a lot more

I've heard the B6-DL thing before. Although, I really, really doubt seeing that anytime soon.

The rumor was running wild a few months ago, I don't think there is any real concrete evidence to support it other than Delta would love to eliminate our competition at JFK and get their hands on the new terminal.

Rumors about this surfaced in the media not too long ago, if I remember correctly, just before the summer. I think it's highly doubtful, but never say never...especially in this industry.

I also remember Neeleman and his team put together a plan to help prevent a takeover by another airline. I believe this was sometime in early Spring of this year.

If it were to happen - or better yet, official word from Delta regarding their interest in B6 be announced - two things:


JetBlue has already publically mentioned they have no interests in a merger.

Delta would be very hypocritical...considering they just did everything to avoid a hostile takeover attemp by US Airways.

Not to mention, jetBlue has the finances to back them up. Additionally, there is no fleet commonality whatsoever. Two totally different business models.

Hmmmm. I don't think B6 will not even merger with DL. I think DL is still in the business for forever. I don't considerable which specific B6 & DL does not merger this time. Because DL is still more competition from JFK hub. I assuming if B6 keep continuation more new jets sometimes in 2008. If B6 will accepted deliveries more new A320 or E190.

Last week on a JFK - SJU flight, the FA told me that B6 was expecting a hostile takeover attempt from DL. The FA had no further info.

Anybody hear anything about this?

I really hope not, I don't want to have to wear a hat!!!

The rumor was running wild a few months ago, I don't think there is any real concrete evidence to support it other than Delta would love to eliminate our competition at JFK and get their hands on the new terminal.

I too remember this rumor circulating way back....

just got an e-mail from Delta with one of those special offers JFK - LAX $89

if it were on jet Blue I'd probably have booked by now, but I'm afraid to get stuck on a legacy plane, sitting in coach in the back of the bus.

--Russ

just got an e-mail from Delta with one of those special offers JFK - LAX $89

I don't blame you and I'm with you on that one :) $89 on a transcon these days is extremely enticing, but I'll take my Blue, thank you very much...

However, credit is deserved where it's due and DL has revamped its coach product more than any U.S. airline, post-jetBlue founding and since Song. While it's still not "the jetBlue experience" and it is somewhat of a "copycat" move, I do admire their efforts. Their whole new ad campaign revolves around "change"...I think it's great...and about time.

I too remember this rumor circulating way back....

just got an e-mail from Delta with one of those special offers JFK - LAX $89

if it were on jet Blue I'd probably have booked by now, but I'm afraid to get stuck on a legacy plane, sitting in coach in the back of the bus.

--Russ

I wouldn't even want to get stuck on a DL flight, even if its free or for like a hour. I'd much rather take B6 or VX at a higher price over DL.

I wouldn't even want to get stuck on a DL flight, even if its free or for like a hour. I'd much rather take B6 or VX at a higher price over DL.

Same here.

Biggest joke is DL is starting IAD-LAX, going up against VX, UA, AA, and B6 IAD-LGB. They're so desperate to expand out of ATL it's sad to watch.

Cant help but think if DL takes over B6, that DL will end up just as PN did after buying National back when. PN bought National for the domestic routes to feed its Intl flights and Way over paid and got really nothing for it, except alot of $$$ loss and headaches.

Cant help but think that DL will be in a real bad Financial bind and any slight miscalculation can put DL out for the count for good.

It seems DL is picking up very well with its Intl biz, I would concerntrate on that rather then the US mkt where profits are slim pickins and where theres always another LCC trying to start up or enter into an already full playing field.

Cant help but think if DL takes over B6, that DL will end up just as PN did after buying National back when. PN bought National for the domestic routes to feed its Intl flights and Way over paid and got really nothing for it, except alot of $$$ loss and headaches.

Cant help but think that DL will be in a real bad Financial bind and any slight miscalculation can put DL out for the count for good.

It seems DL is picking up very well with its Intl biz, I would concerntrate on that rather then the US mkt where profits are slim pickins and where theres always another LCC trying to start up or enter into an already full playing field.

I would have to agree that they're is nothing in it for DL other than elimating a competetor. But to do it, its just was too much of a headache and whatever financial gains come out of it will not even come close to what you pay for B6.

Besides, does DL have any Airbus/Embrear certified stations/mechanics?

JetBlue has already publicly mentioned they have no interests in a merger.Yes - but this does not guarentee they are not interested in a merger or that a merger can be performed via a hostile route (note: I think they are not interested in a merger -- but I want to point out that just because mangers say one thing does not imply they will do that thing).

Delta would be very hypocritical...considering they just did everything to avoid a hostile takeover attempt by US Airways.
<shrug> You think that'll stop them?

Golden shares, poison pills, capital stock buy back, etc might but I do not suspect the fear of appearing hypocritical will drive policy.

B6 has been one of the worst performing airliners in the US from a financial point of view. Creditors and stockholders only have so much more patience. If the picture does not improve, B6 may be forced to seek a suitor.

B6 has been one of the worst performing airliners in the US from a financial point of view. Creditors and stockholders only have so much more patience. If the picture does not improve, B6 may be forced to seek a suitor.

In the last 7 or so years since B6's startup, there have been a number of airlines that have hit bankrupcy. Only one airline has merged, and that being US with HP. However, both DL and NW both were in and pulled themselves out of bankrupcy. Yet, somehow, B6 has stayed clear of filling a chapter 11. How are they worse off than the big boys? (I'm speaking in a general long term sense.)

In the last 7 or so years since B6's startup, there have been a number of airlines that have hit bankrupcy. Only one airline has merged, and that being US with HP. However, both DL and NW both were in and pulled themselves out of bankrupcy. Yet, somehow, B6 has stayed clear of filling a chapter 11. How are they worse off than the big boys? (I'm speaking in a general long term sense.)

Was more thinking of AA and CO. Of couse, DL and NW are the worst... :p

S&P just affirmed the company with a Stable outlook and removed us from a negative watch.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19482970.htm

Yet, somehow, B6 has stayed clear of filling a chapter 11. How are they worse off than the big boys? (I'm speaking in a general long term sense.)

Costs are going up with maintenance on the birds, plus fuel costs more these days. The fuel will affect everyone equally (for the most part), but the maintenance costs will affect B6 somewhat differently than the rest of the industry. Remember that B6 actually got rid of some older A320s while still acquiring new ones, and the justification was that they didn't need all that many more, but the maintenance would be cheaper on the new ones and it didn't require them to break any contracts, so they dumped the old ones.

B6 is also going to see increasing employment costs. Their employees started with zero experience at the company, but as folks stick around (which happens more at companies which are good to work for, and B6 seems to be one), their pay continues to increase. As the average employment term of the staff creeps higher so will the cost of putting three FAs and two pilots on a plane, plus all the other folks involved. The other carriers don't have this problem as much because their turnover is arguably higher and they've been dealing with it for longer, so they've already got it figured in their budgets.

Costs are going up with maintenance on the birds, plus fuel costs more these days. The fuel will affect everyone equally (for the most part), but the maintenance costs will affect B6 somewhat differently than the rest of the industry. Remember that B6 actually got rid of some older A320s while still acquiring new ones, and the justification was that they didn't need all that many more, but the maintenance would be cheaper on the new ones and it didn't require them to break any contracts, so they dumped the old ones.

B6 is also going to see increasing employment costs. Their employees started with zero experience at the company, but as folks stick around (which happens more at companies which are good to work for, and B6 seems to be one), their pay continues to increase. As the average employment term of the staff creeps higher so will the cost of putting three FAs and two pilots on a plane, plus all the other folks involved. The other carriers don't have this problem as much because their turnover is arguably higher and they've been dealing with it for longer, so they've already got it figured in their budgets.

But, keep in mind that B6 has had larger expenses in other line items that made up for the savings in labor and MX. In the last 7+ years, they've taken delievery of 130+ new aircrafts as well as opening 55 stations (54 currently opened station plus ATL), built a maintmence hanger, started LiveTV, and opened an employee hotel at MCO. This doesn't what they've put into the new T5 at JFK. I would say that they savings they've encountered were well allocated to other budgetary and discretionary items. However, your point is very valid. I will give you that, sbm12. I honestly feel that is one of the primary reasons Barger is slowing growth down. He knows they can't (and the market) handle the explosive growth like they've shown coupled with the rise in labor and MX costs.

Besides, does DL have any Airbus/Embrear certified stations/mechanics?


If DL bought out B6 they would have Airbus & Embraer mechanics because they'd end up with B6's employees and fleet.

The fact that there is no commonality between fleets has not stopped mergers in the past. With a massive fleet, of one type of aircraft, such as B6, they could be run as a separate subfleet.

I hope DL does not buy out B6. I don't see them doing it , they are focusing heavily on international routes and already have a massive feeder network in place.

Because of union and fleet issues could DL operate B6 as a totally seperate entity?

Because of union and fleet issues could DL operate B6 as a totally seperate entity?

IMHO, IF DL took over B6, the only way that it would be profitably would be to run it as a separate entity. Just throw in a few code shares, realign some key route schedules to complement each other routes better. Maybe even come up with a brand new FF program.

DL could acquire them and then shut them down. It happens in the software industry all the time. Remember a small company named PeopleSoft that Oracle bought a couple years ago? Or how about all of the companies (large & small) that have been swallowed up and dissolved by the Microsoft and IBM? I'm sure they could easily find buyers for the planes and real estate.

Because of union and fleet issues could DL operate B6 as a totally seperate entity?

What unions? Are any of either company's employees (with the exception of the pilots) organized?

What unions? Are any of either company's employees (with the exception of the pilots) organized?

Add to that several DL dispatchers plus most employees at Comair.

Think DL pilots would consent to separate ops? See AA pilots' job action following AA acquisition of RenoAir for guidance. :)

Odds of Delta buying jetBlue are very, very remote.

Odds of Delta buying jetBlue are very, very remote.

Ditto on that speculation. Let's just say it's like you hitting the megamillions jackpot.