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[Agreement terminated March 2024] B6, NK agree to $3.8 billion merger

[Agreement terminated March 2024] B6, NK agree to $3.8 billion merger

Old Jul 28, 2022, 6:14 am
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[Agreement terminated March 2024] B6, NK agree to $3.8 billion merger

If completed, NK will be merged into B6 in a $3.8 billioin all-cash deal. Deal places NK enterprise value at $7.6 billion (equity+debt).

jetBlue: definitive merger agreement approved by both boards

I suspect B6 will be focused on settling their DOJ lawsuit in tandem with an agreement for DOJ not to take action against this deal. Will B6 be willing to give up enough assets and/or water down the AA partnership sufficiently/entirely to clear away the speed bumps?

Last edited by NYC Flyer; Jul 28, 2022 at 6:17 am Reason: gr, clarif
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Old Jul 28, 2022, 7:39 am
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Originally Posted by NYC Flyer
IWill B6 be willing to give up enough assets and/or water down the AA partnership sufficiently/entirely to clear away the speed bumps?
Yes. Wisely or not, the prospect of achieving national scale will be valued far higher than a comparatively minor codesharing trick in the northeast.
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Old Jul 28, 2022, 7:53 am
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Originally Posted by BearX220
Yes. Wisely or not, the prospect of achieving national scale will be valued far higher than a comparatively minor codesharing trick in the northeast.
Ultimately, no question. I'm just wondering how motivated they will be to get the antitrust concerns dispensed with before the NEA trial starts and whether the DOJ will bite.

If the FF partnership is preserved (which I don't think is subject to regulatory oversightl), while the slot sharing and code sharing components are jettisoned, it's possible AA retains a meaningful benefit going forward to maintain relevance in the NYC market, while B6 gets the step-factor growth they are after.
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Old Jul 28, 2022, 8:35 am
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I've been waiting for-seemingly-ever for JetBlue to come to MHT (New Hampshire being the only state Jet Blue doesn't serve and I live minutes south of the airport). With my luck, ditching Spirit's service from MHT will be part of the merger process. I'd LOVE an easier connection to the rest of JetBlue's network - it would make it a viable "backup" to always driving to Logan.
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Old Jul 28, 2022, 9:14 am
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As I shared in the speculative thread, JetBlue has a new landing page for merger information: https://lowfaresgreatservice.com/

-J.
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Old Jul 28, 2022, 9:15 am
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Originally Posted by GW McLintock
As I shared in the speculative thread, JetBlue has a new landing page for merger information: https://lowfaresgreatservice.com/

-J.
i think they spelled high fares wrong...

and the colored circles should designate what city they represent.
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Old Jul 28, 2022, 9:25 am
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Originally Posted by djplong
I've been waiting for-seemingly-ever for JetBlue to come to MHT (New Hampshire being the only state Jet Blue doesn't serve and I live minutes south of the airport). With my luck, ditching Spirit's service from MHT will be part of the merger process. I'd LOVE an easier connection to the rest of JetBlue's network - it would make it a viable "backup" to always driving to Logan.
Whaaat?

https://www.jetblue.com/route-map
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Old Jul 28, 2022, 9:30 am
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Probably bad for the lowest fares in the market, but some legit competition for the majors (even if B6/NK combined is still meaningfully smaller) can't be such a bad thing. I don't think AA/DL/UA/WN ever really matched NK's fares because they're targeted at different segments (and also because the fares probably weren't really much lower after all the nickels and dimes), but there is definitely more crossover with B6.
And of course "legit competition" remains to be seen given the managerial *@$%show at B6. But sounds good in theory!
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Old Jul 28, 2022, 9:34 am
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Originally Posted by djplong
I've been waiting for-seemingly-ever for JetBlue to come to MHT (New Hampshire being the only state Jet Blue doesn't serve and I live minutes south of the airport). With my luck, ditching Spirit's service from MHT will be part of the merger process. I'd LOVE an easier connection to the rest of JetBlue's network - it would make it a viable "backup" to always driving to Logan.
NK only flies to Florida from MHT, which is also B6's model at PVD I wouldn't be surprised to see them keep at least some of those flights, but I doubt they'd add flights to JFK.
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Old Jul 28, 2022, 10:22 am
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Originally Posted by djplong
I New Hampshire being the only state Jet Blue doesn't serve...
North Dakota would like a word.

I believe NH is the only New England state B6 doesn't serve.
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Old Jul 28, 2022, 10:28 am
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Are they going to install tvs on all the Spirit planes when they retrofit them into Jetblue planes?
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Old Jul 28, 2022, 12:00 pm
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Originally Posted by Dn10
Are they going to install tvs on all the Spirit planes when they retrofit them into Jetblue planes?
Yes, according to everything I've read. And they'll be reconfigured to JetBlue's 32" pitch in regular economy.

This is not a merger. It's an acquisition. The Spirit name will likely be gone by 2025.
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Old Jul 28, 2022, 12:16 pm
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As a casual observer and infrequent flyer of either airline, in my mind JetBlue went from a high-end, customer-friendly airline 10 years ago to a low-end, Spirit-tier carrier with their high baggage fees, inflexible cancellation, etc.

If JetBlue really wants to compete with the big four, they should offer Southwest's flexible policies combined with the nicer aircraft of the big three.
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Old Jul 28, 2022, 1:09 pm
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Originally Posted by Dn10
Are they going to install tvs on all the Spirit planes when they retrofit them into Jetblue planes?
Originally Posted by DenverBrian
Yes, according to everything I've read. And they'll be reconfigured to JetBlue's 32" pitch in regular economy.
Originally Posted by m907
If JetBlue really wants to compete with the big four, they should offer Southwest's flexible policies combined with the nicer aircraft of the big three.
Not making any predictions, but it woudn't be shocking if B6 reevaluates its product as the merger planning progresses. Modyfing the combined B6 product based on an analysis of what worked for NK and what is working for the rest of the industry is not unthinkable. Despite the current assertions, some type of first-class product and/or denser economy seating may be considered, as could changes to ticketing policies.

Originally Posted by DenverBrian
The Spirit name will likely be gone by 2025.
Agree, but I don't think "merger" implies that the surviving corporate entity will preserve the target's name (or anything else). Even in a so-called "merger of equals", one entity survives and the other is absorbed.
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Last edited by NYC Flyer; Jul 28, 2022 at 1:10 pm Reason: sp
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Old Jul 28, 2022, 1:41 pm
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I'm someone who likes flying Jetblue and does so with some frequency. I would drive before I fly Spirit. If the Jetblue product wins out (legroom etc) then that's good in my view. If Jetblue adopts Spirits model, it cuts my options by one.
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