They can more easily recruit pilots, who are in short supply. They also said that buying Spirit would allow JetBlue to compete more aggressively with the four big airlines. Unfortunately, Airbus has a backlog of 3200 aircraft to deliver. Airlines' recovery of . Entrance to Southwest's corporate headquarters in Dallas, Texas. Alaska and JetBlue merger talk is completely out to lunch. Rumors on Delta Airline pilot forums that Delta will be securing approx 25 717's from another carrier. Spotted four #polarbear outside of #longyearbyen -, One of the best crews I have ever had the pleasure, Next stop ARN! Do you see any possibility of merger between Southwest and Alaska or JetBlue? Alaska Air is also a 737 operator, but that doesn't make it a great merger partner for Southwest Airlines. Alison Brown could just predict this for me so I know which one of my favorite be going and Im just glad to be on the side and a man thank you moving forward positively! Quickly dismantle Spirits network and deploy the Airbus where it makes sense within the WN network. While it has certain benefits in training and maintenance those factors would be an easy offset in allowing Southwest to add something like the A220 for long lean market pairs (I.e. It makes more . The theory goes something like this. This Southwest Airlines merger talk simply seems to be a case of the rumor mill run amok. (Spirits board originally preferred a deal paid for in stock, according to regulatory filings, but shares of Frontier have fallen since the deal was announced.) Southwest Airlines (LUV) Q1 2023 Earnings Call Transcript, Southwest Airlines (LUV) Q4 2022 Earnings Call Transcript, Why Southwest Airlines Stock Is Falling Today, Why Southwest Airlines Stock Fell in December, Why Southwest Airlines Is Losing Altitude Today, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, Social Security Cuts May Be Coming. Such a partnership has been the subject of speculation since well before the Alaska-Virgin deal. Maintenance will be kept low because of the 737 aircraft and being able to swap out parts. To be sure, the outlooks for the airlines this year remain horrible even as vaccines start to flow globally. Regulators would probably never approve a merger between, say, United and Delta. The current deals appear to be about quickly bulking up. And while Spirit and JetBlue have some overlap, for example in similar fleets of planes, they operate differently. Frontier-Spirit Merger to Create a U.S. Budget Airline Giant Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Earlier in his career, he also reviewed mergers and acquisitions at the Justice Department. I see their planes landing after midnight regularly at BOS. Keeping flight attendants and pilots on hand will be easy everybodys qualified. Southwest has acquired in 4 different US states. Acquire them simply for the turn key second fleet type and to do away with a competitor. Southwest had a 7% share in Boston and a 3% share in New York, the latter before it announced plans to pull out of Newark. Opinions expressed by Forbes Contributors are their own. Southwest has been consistently profitable and has a strong balance sheet, which could help finance an acquisition. Under either deal, the new larger airline would have more market power in certain cities, particularly in Florida, a popular destination where all three airlines compete. You'll earn 15 elite night credits each calendar year, and receive automatic Gold elite status. Dallas, Texas Such a complicated industry. The lounges are something NEITHER Jet Blue and Southwest do. Consumer advocates want the DOJ to move against JetBlue-Spirit merger - NPR So neither is a great fit beyond merely acquiring aircraft. JetBlue already competes with the four large airlines in cities like New York and Boston and could challenge them further if it is able to acquire Spirits planes, airport gates and staff. That would be a more reasonably sized candidate than AS or B6. Southwest flight attendants ponder CEO Gary Kelly's next move after JetBlue also has a mixed fleet, which consists of A320s and E190s. Thus, Southwest will merge or acquire another carrier in order to stem the flow to its competition. Melinda Gates: we are giving $250 million more to the COVID-19 relief effort, Olympics great Michael Phelps: the COVID-19 pandemic hasnt been all smiles for me, HP CEO: heres how our business is trending during the pandemic, Lululemon founder: retail will rally back after the pandemic, Walmart CEO: the lack of stimulus is taking its toll, Senator Ted Cruz: big tech is drunk on power. Southwest has acquired in 4 different US states. However, in the fourth quarter Spirit posted revenues 1.8 percent higher than in 2019 at $988 million; Frontier revenues were down 7 percent year-over-two-years to $609 million. So I dont get how Southwest is incompatible but Jet Blue is. Though it might make more sense for it to merge with a legacy carrier (and become its low-cost wing) than for two legacies to merge with each other, approval for a Southwest merger would be very difficult, if not impossible, because of the low-cost carrier's size. Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Downdetector only reports an incident when the number of problem reports is significantly higher than the typical volume for that time of day. Some legal experts said that either deal could win the backing of regulators with some compromises like an agreement to divest gates at some airports. Refund policy Change or cancel your flight Flight credits Overbooking Procedures Transferable Flight Credit Same-day change and Same-day standby. If Boeing announces further MAX return-of-service delays and/or a 737 MAX rate cut, that would increase risk to Southwest of a multi-year constraint on its capacity. In other words, because of the toll the pandemic has had on air travel and airline cash flow, the stock prices are crazy low and unattractive in trying to fund a deal. Now Sun Country that could be a very different story. Its style and company profile do not present any viable merger candidates in the United States. Publicly, Southwest remains upbeat, stating We remain confident that, once certified by the FAA, the enhancements will support the safe operation of the MAX., DeNardi, however, says, Over the last few months, there have been several data points which suggest that Southwest's capacity plans will be impacted more significantly and for a longer duration than previously expectedAs a result, we now see M&A as more likely (70% vs. 50% previously).. 2009 - Acquired AeroGal. - After two fatal crashes in five months, Boeing is trying hard -- very hard -- to present itself as unfazed by the crisis that surrounds the company. United Airlines Fires Six Senior Flight Attendants For Bullying Junior Flight Attendant. Most international service gone? None of these companies would be a very suitable merger partner, and attempting to merge would create a huge distraction just as Southwest is starting to ramp up its organic growth again. Southwest Airlines outage and reported problems map You could see United Airlines buying JetBlue (JBLU). Review: Lufthansa Business Lounge Athens (ATH), U.S. Tightens The Screws On Cuban Tourism, Southwest Airlines Technology Trouble Re-Emerges, Guessing JetBlues Next European Destination, Irrefutable Proof The JetBlue-Spirit Merger Hurts Consumers, Hyatt Acquisition of Mr. And Mrs. Smith Platform Aligns Well, Huge Frequent Flyer Programs Struggle At Freddie Awards, American Airlines First Class Passenger Dragged Off Plane After Demanding Pre-Departure Beverage. While obviously a smaller number of aircraft, the A321neo does offer about 25% more seats than the MAX8, and so could address much of Southwests capacity growth needs. Such an acquisition would: 1) Eliminate a significant and growing competitor (on ticket pricing) 2) Establish SWA in a large number of places theyve eventually wanted to be to the south (without having to create their own infrastructure, manning, etc) and 3) Solve the issue of lack of growth and diversify the fleet (i.e. Please don't sabotage your own union's efforts on your behalf. Sw should merger with AA.technically spakimg AA has same mentality as SW, no service and everything is cheaper, Not sure why any one should or would pay for it. I dont think these companies individually would have made it.. They cant be too dumb at Love Field. With Trump at the helm you never know of course but I dont think the regulators want to let the big 4 get any bigger by gobbling up one of the larger remaining independents. Anything is possible in the airline industry. 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy program. From an operational perspective, it seems that Alaska would make more sense since they have a lot more Boeing aircraft. Flying on Southwest has been awful. The company has a fix: Fewer - CNN Could JetBlue be an answer to Southwests problems? Doubters see Southwests 737 MAX problem as a short-term issue. 301 Route 17 N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000, U.S., By Acquiring AirTran, Will Southwest Continue to Spread the LUV? Now a bit player like Sun Country could be a different deal. . (Photo by FG/Bauer-Griffin/GC Images), conference at Southwest Airlines headquarters on April 17, 2018 in Dallas, Texas. The Big Four in the airline industry long known as Delta ( DAL ), American Airlines ( AAL ), United Airlines ( UAL) and Southwest Airlines ( LUV) may look a little different at some. Southwest Airlines current status | Downdetector Added Becker, You can see Allegiant, Frontier and Spirit merge. Related:Southwests 737-700s Among Jets Sticking Around Longer Because of the MAX, "Southwest needs aircraft. Southwest is the #3 US airline by marketshare. 5 will make for a stronger competitor.. Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Remember why people fly WN. Fearing this, Stifel, a major investment banking firm, downgraded Southwest yesterday with the following warning: An acquisition by Southwest motivated by a desire to diversify away from the Max creates significant risks in the near term for LUV. They could very quickly repaint those planes and re do the cabins and absorb them into their system without much need to worry about what Sun Country used to be. The colonial #architecture of #mumbai is stunning. Merger Rumors in 2021: Lessons from US Airways and American Airlines Siri hates me! Youre facing American, United, Delta and Southwest with such enormous fleets and market penetration, said Samuel Engel, a senior vice president and airline industry analyst at ICF, a consulting firm. 2009 - Merged with TACA Airlines. Of course, neither deal is a certainty, and in either combination, executives could struggle to mesh the businesses. Neither the U.S. Department of Transportation nor A4A maintains official records of airline M&A activity. Excerpts and links may be used, provided that full and clear credit is given to Live and Let's Fly with appropriate and specific directions to the original content. WN is interested in larger airplanes now, so the A220 isnt a priority where the 320/321 would rank high. The Big Four in the airline industry long known as Delta (DAL), American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV) may look a little different at some point this year as executives pull the trigger on mergers to consolidate costs as the slog from the depths of the pandemic stretches on. We may receive compensation when you click on links to those products. JetBlues stock has fallen more than 10 percent since The Times reported its offer for Spirit in part because investors are unsure of JetBlues ability to fully take advantage of the acquisition. At this point, Buffett, 89, will have to pull the trigger soon, if only to catch up with fellow octogenarian Phil Ruffin on the acquisition front. Sell side analysts and their version of click bait. Some critics of corporate consolidation disagree and say that airline mergers could be bad for consumers and workers. Explore Source: Southwest Image Library. Southwest grew tremendously internationally after acquiring AirTran. Every day, new opportunities emerge around M&A and we help professionals of all types comb through transactions, investors, and corporate acquirers via an easy-to-use web database that is accessible to anyone. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright document.write(new Date().getFullYear()) Live and Let's Fly All Rights Reserved.Unauthorized use and/or duplication of this material without express and written permission from this sites author and/or owner is strictly prohibited. Southwest Airlines Newsroom Not a chance in heck. The next couple of years will be interesting. AirTran earned $250 million in fees . Instead of asking "are we done yet?" Neither the U.S. Department of Transportation nor A4A maintains official records of airline M&A activity. Airports, Western Air Express / Transcontinental Air Transport, Delta Air Lines / Chicago and Southern (C&S) Air Lines, Western Airlines / Pacific Northern Airlines, Allegheny Airlines / Lake Central Airlines, Allegheny Airlines (later renamed US Airways), Alaska Airlines / Alaska Coastal Airlines, Pacific Airlines / Bonanza Airlines / West Coast Airlines, American Airlines / Trans Caribbean Airways, North Central Airlines / Southern Airways / Hughes Airwest, Continental Airlines / Texas Air Corporation, Continental Airlines / People Express / New York Air / Frontier Airlines, American Airlines / Eastern Air Lines: Latin Routes, Delta Air Lines / Pan Am Airlines (Shuttle and Atlantic Routes), United Airlines / Pan Am: Latin & Caribbean Routes, Delta Air Lines / Atlantic Southeast Airlines, SkyWest / Atlantic Southeast Airlines / ExpressJet Airlines, United Airlines (via ManaAir) / ExpressJet Airlines, Southern Airways / Air Choice One (Multi-Aero). Downdetector only reports an incident when the number of problem reports is significantly . By numbers alone, JetBlues all-cash deal is superior, offering a roughly 40 percent premium to Frontiers original cash and share offer, based on share prices the day before JetBlue disclosed its bid. Selling Groups, family and Adventure Travel. Southwest CEO Gary Kelly, responding to Baker, said the MAX impact to that point was manageable and the airline continued to "execute" on its strategy. Southwest Airlines is profitable but has a growth problem created by the continued grounding of its 34 Boeing 737 MAX aircraft (of 310 on order). By logging into your account, you agree to our. Its comical to read people discredit Alaskas success; they have proven to be the competitive underdogs, especially by purchasing Virgin America, a company that was also a 180 from the traditional carrier. Bigger airlines also get lower prices and better service from airplane manufacturers. In addition, Frontier and Spirit have been criticized for poor customer service, and Phil Weiser, the attorney general of Colorado, where Frontier is based, warned federal regulators last month that the merger creates a real and pressing risk that service could worsen if the two companies merged. Hawaiian Airlines First Class Lie-Flat Review, Hawaiian Joins Mid-Air Diversions | Now 7 In Three Weeks, Within 48-Hours, 3 Alaska Air Hawaii Flights Divert Over Pacific. The Southwest Changes and Cancellations Hub is where you will find answers and information on refunds, overbooking, and flight credits. It would be the first merger of large . Thoughts? Its 17% share barely trails American, with 17.6%, and Delta, 17.4%. Southwest has acquired 4 companies. JetBlue operates two models of aircraft already. As a best-case scenario, airlines this year are facing a low-demand first half followed by a potentially swift recovery at least of leisure business in the second half, dependent on an effective vaccine rollout. Finally, the free night award certificate with a redemption level of 35,000 points or less can get you hundreds of dollars in potential value each year. Thats because larger airlines have advantages. The Motley Fool has a disclosure policy. Though Virgin was a relatively small airline, Alaska probably won't be making any other acquisitions in the near future. (214) 792-4000 (Photo by Stewart F. House/Getty Images), Southern California Logistics Airport in Victorville, California on March 28, 2019. 2x points on all other eligible purchases. But that does . JetBlue Airways this week made its own bid, of $3.6 billion, for Spirit, which said late Thursday night that it would consider the proposal. Southwest Airlines Unveils Imua One, A High-flying Tribute, with Gratitude to Southwest Employees and the People in Hawaii They Serve Apr 28, 2023 -Southwest Airlines Co. (NYSE: LUV) today, on the anniversary of its first interisland flights within Hawaii, commemorates beginning a fifth year of serving the Aloha State by introducing Imua One, a Hawaii-themed aircraft livery that symbolizes . Southwest needs to diversify its fleet away from the 737," wrote Baker on Tuesday. Second I tend to doubt that an Alaska or JetBlue acquisition would be allowed by the DOT. Hawaiian Airlines flies a mixed fleet including 717s, two different types of widebodies, and also contracts out for regional flights on ATR turboprops. Mergers and Acquisitions - Airline Pilot Central Forums 75235 And US Airways had much less in the way of contested hubs than an Alaska/Jet Blue hybrid would- they would literally have a bigger competitor in EVERY hub or focus city outside of Anchorage (lol). The Southwest Airlines mess and rumors of a vaccine walkout Pretty sure he is on the record as saying it didnt work well. JetBlues multiple seating classes, such as the popular Mint Class, would also be a culture change from Southwests single class of service. Many people thought that the era of mergers and acquisitions ended when American Airlines joined forces with U.S. Airways. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The Flight Attendants & Pilots unions, wouldnt allow it to happen. CANADA (FR), Last updated: 4:30 PM ET, Wed April 6, 2016. This Southwest Airlines merger talk simply seems to be a case of the rumor mill run amok. At some point, that risk becomes strategically unacceptable to Southwest. However, there would be a number of issues bringing in JetBlue employees including union status, seniority and pay structure. I recently spent a weekend at the @ventanabigsur. We'll run a soft credit check to find special offers, but it wont affect your credit score. Will Southwest Really Merge With Alaska Or JetBlue? Regulators are concerned about more than market share. Southwest Airlines could use JetBlue, but a merger is unlikely In an illustration of the industrys lopsided nature, Alaska Airlines, the fifth-largest carrier last year, controlled just 5 percent of the domestic air travel market, while United, the fourth biggest, had nearly 13 percent. The aircraft are different, of course, which would require training and logistical upgrades. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.