APA and the Jetblue pilot committee!

[bluechunks]

The company will be their representative until they get a union so, they can't get stapled, but they could still get pretty heavily screwed.

Why would it even have to go that far? There are several morally evil but plausible ways for the JB BOD to "enhance shareholder value" by not having any strings (i.e. employees) causing issues during a transactional event---particularly when the JB's true financial value is contained in hard assets (terminals, gates, slots, aircraft, ect...)

As an example, every single JB pilot is an "at will" employee per NY labor law -- just ask any of the handful of JB pilots fired over the years. (Hint: this is the precedent used successfully by JB when fired pilots have attempted to appeal their termination.) The JB PEA covers the terms of employment but does not guarantee employment...or even appeal.

 

[jonjuan]

Sounds like a great deal for the couple thousand AA pilots that are out of work.

Gup

They're all out of work?

 

[Skyboy722]

They're all out of work?

You do know how many they have on furlough, right?

 

[JetFumes]

How did it all go down with Reno Air? Is this one of the steps, or something else?

 

[Mach92]

Guppy I'm not so sure about that...furloughed pilots would be placed below flying pilots at the mergered carrier.

Negative ghost rider

 

[Draginass]

Staple job...NO, Date of hire YES

A date of hire would be a staple.

 

[waterski]

Negative ghost rider

Why not?

 

[Beantown]

If a company like AMR wants to get enough shares to control JBLU then the share price will go up, way up. Less shares on the market, higher price, especially with everyone holding their shares to see what AMR will offer as a premium. At least in my mind I don't see jetblue agreeing to a merger, therefore AMR has to buy them, at a premium compared to what they are today. Even at 5.76 a share Jblu is worth 1.7 billion dollars, and it probably has a acquisition value in the 2-3 billion dollar range. Again, I don't see the incentive for Jblu to merge. I can see why AMR would want Jblu, but not why Jblu would want AMR.

Bingo! It's not the stock price , it's the amount of shares outstanding. JB has a lot, and at $5.77, they are very expansive.

For comparison, Airtran is about the same size as JB, there stock price is $4.39 to JB's $5.77 yet they are only worth 594M to JB's 1.7B.

As n757 questions, WHY? No one has answered that yet. They have a new terminal in JFK, they already have a huge presence in JFK, Boston, south FLA, and the Caribbean, if you apply AA's cost structure to JB, you have no chance to make money, different fleets, different products, different cultures, ect ect.

I really can't come up with one reason AA would want to buy JB. Hell AAI would make much more sense for a third the price. Of course this is aviation, so the fact that it should never happen means it probably will.

 

[Yuppyguppy]

Guppy I'm not so sure about that...furloughed pilots would be placed below flying pilots at the mergered carrier.

not true

 

[Flyby1206]

I really can't come up with one reason AA would want to buy JB. Hell AAI would make much more sense for a third the price. Of course this is aviation, so the fact that it should never happen means it probably will.

Just to play devil's advocate.. If AMR bought jetblue then they would be eliminating the most widespread low-fare carrier in the east coast/northeast/caribbean markets. That would raise all subsequent fares for all other carriers operating in those areas, including AMR.

Isnt it AMR's standard operarating procedure to buy the competition then shut them down? (See TWA, Reno, Air Cal, etc)

And a side note, AMR would suddenly gain a HUGE share of the JFK slots. Granted, some of them would have to be given away, but they would no doubt increase their JFK market share over what DAL currently has.