LH to consider dumping B6 stake...
Sep 23, 2011 | 10:48 am
#1
Original Poster
Join Date: Aug 2007
Posts: 325
LH to consider dumping B6 stake...
Source: http://online.wsj.com/article/BT-CO-...22-711262.html
My take is that this was just a place to park $; nothing more. Assuming the ROI was poor, what implications does this have long term for B6?
Worst case; some hedge fund takes over, cleans out the management and employs a scorched earth policy to wring every penny then can before selling it themselves a few years down the road.
My take is that this was just a place to park $; nothing more. Assuming the ROI was poor, what implications does this have long term for B6?
Worst case; some hedge fund takes over, cleans out the management and employs a scorched earth policy to wring every penny then can before selling it themselves a few years down the road.
Sep 23, 2011 | 9:07 pm
#2
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Hard to believe the RoI was poor based on the numbers.
And with only ~16% and a single seat on the board at stake I'm not sure anyone could effectively implement a "scorched earth" policy that would destroy the company.
The ATI++ arrangement with UA, AC and others makes the utility of B6 as a feeder and partner somewhat lower. And there's not much of a need for LH to try to snag some extra JFK slots from the B6 portfolio these days. And it also wasn't long ago that LH acknowledged they were mostly just buying the stake because they saw an upside to the B6 business model and the currency rates at the time.
And with only ~16% and a single seat on the board at stake I'm not sure anyone could effectively implement a "scorched earth" policy that would destroy the company.
The ATI++ arrangement with UA, AC and others makes the utility of B6 as a feeder and partner somewhat lower. And there's not much of a need for LH to try to snag some extra JFK slots from the B6 portfolio these days. And it also wasn't long ago that LH acknowledged they were mostly just buying the stake because they saw an upside to the B6 business model and the currency rates at the time.
Sep 26, 2011 | 6:12 pm
#3
Join Date: Oct 2001
Location: PHX/SFO/LAX
Programs: AA-EXP (1.7MM), BA-Slvr, HH-Diamond
Posts: 7,784
If we see BA move on these shares, B6 is(eventually) headed to OW. ^
This is speculation on my part, but any AA investment will probably happen after they go through their prepackaged Ch 11. Whether B6 is majority owned by AA/BA or merged into AA outright will depend on what happens to union contracts in bankruptcy.
Could we see B6 convert to a miles based FFP versus their current points based system?
This is speculation on my part, but any AA investment will probably happen after they go through their prepackaged Ch 11. Whether B6 is majority owned by AA/BA or merged into AA outright will depend on what happens to union contracts in bankruptcy.
Could we see B6 convert to a miles based FFP versus their current points based system?
Oct 27, 2011 | 7:30 am
#5
Join Date: Sep 2011
Posts: 124
http://investor.jetblue.com/phoenix....684&highlight=
Doesn't this indicate that they made a profit (net income $35 million)?
Oct 27, 2011 | 7:37 am
#6
Suspended
Join Date: Jun 2009
Programs: Delta skymiles DM + 1MM
Posts: 8,144
http://investor.jetblue.com/phoenix....684&highlight=
Doesn't this indicate that they made a profit (net income $35 million)?