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[Speculation] Spirit/Frontier Merger - Effects on AS?

[Speculation] Spirit/Frontier Merger - Effects on AS?

Old Feb 7, 22, 11:15 am
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[Speculation] Spirit/Frontier Merger - Effects on AS?

If approved the merger between Spirit and Frontier would move Alaska from fifth to sixth largest US airline. How will this affect Alaska?
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Old Feb 7, 22, 11:20 am
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I can't see how it would have a noticeable effect. Neither has a strong west coast presence. That said, I would love for them to add more flights to the west coast if that means AS will drop prices.

Not that it's even in the cards, but it may make it harder for AS to buy (or be bought by) another airline in the next 10+ years due to the increased scrutiny around potential monopolies.
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Old Feb 7, 22, 11:29 am
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Biggest problem for AS is that they are pretty much confined to the PNW. They are profitable there and there is not much ULCC pressure. If they are happy with that niche, they will be fine for now. It is pretty doubtful that the PNW is going to be a big area of focus for F9NK anytime soon. The bigger question which AS has yet to answer is aside from SEA, where are they are going to grow?
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Old Feb 7, 22, 12:22 pm
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As noted, I would agree that it makes it less likely that AS is either bought or buys another airline. I can only really see this occurring with airlines smaller than AS at this point, which frankly doesn't leave too much. The only merger target that I think would be approved is Sun Country. I have a hard time believing NK/Frontier is going to buy Allegiant, and I can't imagine any of the main carriers buying Allegiant either. Which doesn't leave a whole lot..

Not a fan of the consolidation but I get it's a little inevitable. At some distant level, I also think the endgame is a large carrier failing (maybe AA?) and being forced-merged into another large carrier. But the odds of any large voluntary merge in the near future seem extremely low to me..
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Old Feb 7, 22, 12:41 pm
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Originally Posted by barabuski
As noted, I would agree that it makes it less likely that AS is either bought or buys another airline. I can only really see this occurring with airlines smaller than AS at this point, which frankly doesn't leave too much. The only merger target that I think would be approved is Sun Country. I have a hard time believing NK/Frontier is going to buy Allegiant, and I can't imagine any of the main carriers buying Allegiant either. Which doesn't leave a whole lot..

Not a fan of the consolidation but I get it's a little inevitable. At some distant level, I also think the endgame is a large carrier failing (maybe AA?) and being forced-merged into another large carrier. But the odds of any large voluntary merge in the near future seem extremely low to me..
if AS was going to buy/ merge then jet blue is the logical one.

This mergers means nothing to AS or other carriers. These two are still considered oxygen optional airlines in my book.
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Old Feb 7, 22, 1:09 pm
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Originally Posted by djp98374

This mergers means nothing to AS or other carriers.
This is not true. NKF9 is growing faster than other carriers and takes resources at key airports and cuts yields on many routes as well. Although they don't impact much of AS's current network, they definitely limit possible areas of expansion for AS. That said, there does not seem to be any strategy by AS to expand much beyond the PNW.
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Old Feb 7, 22, 1:25 pm
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I've never understood budget carriers like Frontier and Spirit. It seems their whole business model is built on deception. Advertise low fares and pile on the fees. Unless you travel with literally nothing but your cell phone you're going to end up paying the same or more than on a regular airline that at least gives you a free carry-on.

I've talked to numerous groups of people in places like Vegas that ended up getting "stung" by just taking the bait of the low advertised fare.

To the point of the thread, I can't see this merger having any impact on AS. Aside from the regional thing, the business models are just totally different.

As for a merger dream - I'd love to see Alaska and Hawaiian merge. They overlap a lot of areas and could really dominate the west coast (or, with the range of the planes these days the western US) to Hawaii flights.
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Old Feb 7, 22, 1:51 pm
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Spirit and Frontier have been around for a while now, so their business model and practices are pretty well known.

A larger and stronger ULCC is good for low fares.
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Old Feb 7, 22, 2:18 pm
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Originally Posted by djp98374
if AS was going to buy/ merge then jet blue is the logical one.

This mergers means nothing to AS or other carriers. These two are still considered oxygen optional airlines in my book.
Totally - I've felt JetBlue and Alaska has always made a lot of logical sense (and JB bidding for Virgin made more sense than the Alaska deal). But I don't think that deal would be approved (personally - not an expert). In such a situation, the US would have essentially 4 "large" airlines (AA, DL, UA, WN), and only 2 "medium" airlines (combined AS/B9, combined Spirit/Frontier). I can't imagine the government wants to head down that route, but what do I know.. just hypothesizing!
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Old Feb 7, 22, 2:19 pm
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Originally Posted by dayone
Spirit and Frontier have been around for a while now, so their business model and practices are pretty well known.

A larger and stronger ULCC is good for low fares.
Not only do people fly them, but they even <hold your drink> status match TO them.
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Old Feb 7, 22, 2:21 pm
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Originally Posted by mtofell
I've never understood budget carriers like Frontier and Spirit. It seems their whole business model is built on deception. Advertise low fares and pile on the fees. Unless you travel with literally nothing but your cell phone you're going to end up paying the same or more than on a regular airline that at least gives you a free carry-on.
Isnt a small bag that fits under your seat pretty much always included? (e.g. Avelo: 14″L x 9W x 9.5″H)

I have never flown any of them, but I have bought tickets for family on Avelo and Allegiant. Yes, there is some amount of deception if you want to use that term for unbundling, but of you arent an AS elite, you get to pay for optional stuff like bags or seats outside Saver, too. In the end, when I made the purchase, the flights were more convenient (non-stop vs, connection on AS or other major) and cheaper even after factoring in seat assignment fee or bag fee. The main concern was their light schedule and what a cancellation would mean. For myself, seat comfort and RDM and EQM would have been a factor, too, but for those family members it was a non-issue.
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Old Feb 7, 22, 2:32 pm
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Originally Posted by notquiteaff
Isnt a small bag that fits under your seat pretty much always included? (e.g. Avelo: 14″L x 9W x 9.5″H)
I thought they charged for everything but you might be right. I didn't think of the difference between a personal item and a carry-on.
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Old Feb 7, 22, 3:05 pm
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Originally Posted by dayone
Spirit and Frontier have been around for a while now, so their business model and practices are pretty well known.

A larger and stronger ULCC is good for low fares.
Especially as benefits at traditional carriers erode. I think this is why many were throwing a tantrum about the temporary single beverage cart change and the ask to bring your own food and drink onboard. At that point, why not fly F9 or NK?

On routes that NK and F9 operate out of SEA that I've looked at, primarily to LAS, I haven't seen AS fares that are dirt cheap relative to other cities that they service in the same general vicinity. They seem to be a lot more sensitive to competition from DL and WN than they do with the ULCCs. Though I agree that a combined F9/NK changes the equation somewhat.
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Old Feb 7, 22, 3:28 pm
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Originally Posted by jsguyrus
If approved the merger between Spirit and Frontier would move Alaska from fifth to sixth largest US airline. How will this affect Alaska?
Ask a similar question with the roles reversed -- if American bought US Airways, how would that affect Southwest?
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Old Feb 7, 22, 4:01 pm
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Originally Posted by sfozrhfco
This is not true. NKF9 is growing faster than other carriers and takes resources at key airports and cuts yields on many routes as well. Although they don't impact much of AS's current network, they definitely limit possible areas of expansion for AS. That said, there does not seem to be any strategy by AS to expand much beyond the PNW.
their merger doesnt mean growth. Their customer bases are different. Apples and oranges.

Originally Posted by barabuski
Totally - I've felt JetBlue and Alaska has always made a lot of logical sense (and JB bidding for Virgin made more sense than the Alaska deal). But I don't think that deal would be approved (personally - not an expert). In such a situation, the US would have essentially 4 "large" airlines (AA, DL, UA, WN), and only 2 "medium" airlines (combined AS/B9, combined Spirit/Frontier). I can't imagine the government wants to head down that route, but what do I know.. just hypothesizing!
if you combine Alaska and jet blue together alaskaads the Caribbean routes and gives jet blue more reach to Midwest cities.

in mid west airports the AS does an out and back daily , JB routing could serve the same gate from staffing and you can have more route options with the right scheduling and could open the need of a hub being created say in the Midwest. Where you have smaller secondary airports.

expanding and filling out would make it equal or bigger than WN in coverage.
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