[Agreement terminated March 2024] B6, NK agree to $3.8 billion merger
Jul 28, 2022, 6:14 am
#1
Original Poster
Join Date: Dec 1999
Location: NYC/PHX
Programs: IATA, Sabre, AvgeekAgent
Posts: 1,958
[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?
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
Jul 28, 2022, 7:39 am
#2
FlyerTalk Evangelist
Join Date: Jul 1999
Location: ORD/MDW
Programs: BA/AA/AS/B6/WN/ UA/HH/MR and more like 'em but most felicitously & importantly MUCCI
Posts: 19,719
Yes. Wisely or not, the prospect of achieving national scale will be valued far higher than a comparatively minor codesharing trick in the northeast.
Jul 28, 2022, 7:53 am
#3
Original Poster
Join Date: Dec 1999
Location: NYC/PHX
Programs: IATA, Sabre, AvgeekAgent
Posts: 1,958
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.
Jul 28, 2022, 8:35 am
#4
Join Date: Mar 2011
Programs: TrueBlue
Posts: 195
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.
Jul 28, 2022, 9:14 am
#5
FlyerTalk Evangelist
Join Date: Mar 2009
Location: NYC
Programs: AS MVPG, DL KM, Bee Six, Bonvoy Plat, Avis PC, Natl Exec, Greyhound Road Rewards Z"L
Posts: 16,690
As I shared in the speculative thread, JetBlue has a new landing page for merger information: https://lowfaresgreatservice.com/
-J.
-J.
Jul 28, 2022, 9:15 am
#6
Join Date: Nov 2018
Location: New York
Posts: 799
As I shared in the speculative thread, JetBlue has a new landing page for merger information: https://lowfaresgreatservice.com/
-J.
-J.
and the colored circles should designate what city they represent.
Jul 28, 2022, 9:25 am
#7
FlyerTalk Evangelist
Join Date: Jun 2002
Location: n.y.c.
Posts: 13,988
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.
https://www.jetblue.com/route-map
Jul 28, 2022, 9:30 am
#8
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,230
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!
And of course "legit competition" remains to be seen given the managerial *@$%show at B6. But sounds good in theory!
Jul 28, 2022, 9:34 am
#9
Join Date: Apr 2004
Location: BOS
Programs: Marriott LTG, HHonors Diamond, Nat'l Exec
Posts: 3,581
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.
Jul 28, 2022, 10:22 am
#10
FlyerTalk Evangelist
Join Date: Jul 1999
Location: ORD/MDW
Programs: BA/AA/AS/B6/WN/ UA/HH/MR and more like 'em but most felicitously & importantly MUCCI
Posts: 19,719
Jul 28, 2022, 10:28 am
#11
Join Date: Mar 2016
Posts: 655
Are they going to install tvs on all the Spirit planes when they retrofit them into Jetblue planes?
Jul 28, 2022, 12:00 pm
#12
FlyerTalk Evangelist
Join Date: Feb 2003
Location: Denver, CO, USA
Programs: Sometimes known as [ARG:6 UNDEFINED]
Posts: 26,687
This is not a merger. It's an acquisition. The Spirit name will likely be gone by 2025.
Jul 28, 2022, 12:16 pm
#13
Join Date: Oct 2016
Posts: 3,703
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.
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.
Jul 28, 2022, 1:09 pm
#14
Original Poster
Join Date: Dec 1999
Location: NYC/PHX
Programs: IATA, Sabre, AvgeekAgent
Posts: 1,958
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.
Last edited by NYC Flyer; Jul 28, 2022 at 1:10 pm Reason: sp
Jul 28, 2022, 1:41 pm
#15
Join Date: Mar 2017
Posts: 246
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.