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Blue/Alaska/Hawaiian merger

$$$4nothin

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With the latest merger between US Airways and AMR, American Airlines Group (NASDAQ: AAL ) is almost certainly the last of the North American airline megamergers. But there are some smaller carriers that have merger possibilities, and the futures of these carriers affect those of big and small airlines alike.

Growing through Hawaii
Unless you live in Hawaii, on the West Coast, or in a major city, there's a good chance you've never heard of Hawaiian Airlines, owned by Hawaiian Holdings (NASDAQ: HA ) . But while major carriers are trying to restrict capacity growth, Hawaiian is growing into new markets.

With the vast majority of its revenue coming from travel between the west coast of the United States and Hawaii, Hawaiian Airlines is seeking to diversify and expand. Ordering a new set of jets with improved fuel efficiency and range, Hawaiian is moving into the Pacific markets with flights to Australia, New Zealand, China, and Japan. With potential for additional growth in emerging Asian markets, Hawaiian Airlines is both a U.S. tourism investment and an emerging markets investment.

Hawaiian Airlines is not currently a member of any of the three major airline alliances preferring to form partnerships with individual carriers instead. This means that an airline acquiring Hawaiian would gain a new alliance member regardless of which alliance the acquiring airline is a member of. In addition, much of Hawaiian's network would be new additions to that of a major airline. This lack of overlap would allow an acquiring carrier to more efficiently obtain a larger network while making the antitrust process less difficult.

Northeast favorite
Since its founding in 1998, JetBlue Airways (NASDAQ: JBLU ) has held valuable real estate at major airports while offering a flying experience unique from major carriers. But with slots at major airports tightly held, JetBlue has found limited expansion opportunities in the northeast.

The talk of a JetBlue merger rose to prominence shortly after the Department of Justice filed its lawsuit to block the US Airways/AMR merger in August of this year. A merger between US Airways and JetBlue was occasionally discussed among analysts as an alternative if the US Airways/AMR merger was unsuccessful.

But a settlement was reached in the US Airways/AMR merger and the process of building the world's largest airline was given the go ahead. JetBlue actually turned out to be a big winner from the settlement as the DOJ got the merging airlines to divest some highly valued slots to discount airlines such as Southwest Airlines and JetBlue.

Although JetBlue is a smaller carrier and the acquisition of it would be a significantly smaller merger than the US Airways/AMR merger, a JetBlue acquisition would be expected to come under strict antitrust scrutiny. One of the ways the DOJ has sought to maintain competition after the US Airways/AMR merger is by having American Airlines Group give up some slots to carriers like JetBlue. If the DOJ then allowed a major carrier to acquire JetBlue, it would defeat the whole purpose of the slot divestments.

Most likely a merger involving JetBlue would not involve American Airlines, United Continental, or Delta Air Lines. Instead, if such a merger were to happen, a smaller airline would have to merger with JetBlue.

The DOJ may allow a merger between JetBlue and Alaska Airlines, a subsidiary of Alaska Air Group (NYSE: ALK ) , as such a merger would have limited overlap and would provide a stronger airline to compete with the largest carriers. The combined network of JetBlue and Alaska Airlines would have a much greater nationwide presence combining JetBlue's strong east coast network with Alaska's strong west coast network. Challenges would remain in integrating smaller airlines that have a distinctive brand image developed over time, but if the two carriers did see an advantage in combining, they could always choose to keep two brand names but operate as one airline.

End of mergers?
The airline industry has just undergone the greatest wave of consolidation in its history. Over the next few years, we will see the full integration of American Airlines Group, the finishing touches on the United Continental merger, and the responses by all airlines to the new industry environment.

While the largest airline mergers look to be at an end, mergers and acquisitions of smaller airlines could still happen under the right conditions. Investors should not pick an airline purely because of merger potential but smaller merger possibilities are something to keep in mind now that the largest mergers are finished.

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I see a Blue/Hawaiian/Alaska merger in the future.

5000 pilot group. 400 airframes. 100 on order. Route structure that covers everything except Europe. 100-350 seat lift. Seems like a great merger to me.
 

CapnVegetto

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What is this? The 856 millionth damn JetBlue merger report? Ill believe it when I see it.
 

Flyby1206

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enuff
Like I said before, VX would need to be a part of this. A 4-way merger of the above carriers could be something to at least compete with legacies/southwest. I think a non-alliance mega carrier would do well and attract a lot of international partners.

But it will take some serious pressure from investors/wall street to make this happen.
 

Flyby1206

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And for poops and giggles:

Alaska (+Horizon), jetblue, Virgin America, Hawaiian

Combined fleet: (in service/orders/options)
A330- 14+7+5
A350- 0+6+6
B767- 14
A319/320/321- 186+71
A320/321NEO- 0+106+9
B737- 133+30
B737MAX- 0+37
E190- 60+21
B717- 18
ATR42- 3
Q400- 48

Total fleet 476+278+11

Hubs: BOS, JFK, FLL, MCO, LAX, SFO, PDX, SEA, ANC, HNL

Pilot count: 5801
 

pilotpayne

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It's going to be called " Our Management is Too Dumb to do Something This Smart" Airways.

Sorry but this crap bothers me.
Big words from a 190 pilot.
I do not think the top guys at this place are dumb at all.
The middle group is up for debate.
If the money is there and it's good for wall st it will be done.
 

BeachBummer

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Relative seniority? Doh? Career expectations? Horizon (spoogeinpants) flow through?

Who's got the most retirements?

I'm sure we'd go with the DR... ALPA would cap our pay and make us take concessions.

So many questions to be answered by out fi managment pilots! LoL
 

Flyby1206

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Don't forget your brothers/sisters at Cape Air!!!!!

I would truly support all cape air pilots being a part of the jetblue seniority list.
 

Smarta$$

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Sorry but this crap bothers me.
Big words from a 190 pilot.
I do not think the top guys at this place are dumb at all.
The middle group is up for debate.
If the money is there and it's good for wall st it will be done.

With the monolith carriers, we may need each other (JB and ALK) to be relevant and strong enough. If it doesn't happen soon with DL throwing capacity at both of us, you may not think our management is so smart for long....

How has our profitability been compared to our peers? Do you not think these guys fumble a great many things? By the way, the top guys get to pick, lead and fire the middle guys. If there is failures at the middle, it is ultimately because the top isn't doing their jobs sufficiently. I'm not all negative, and you know that.

We will all know the future after it happens. Good luck to us all.
 

pilotpayne

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With the monolith carriers, we may need each other (JB and ALK) to be relevant and strong enough. If it doesn't happen soon with DL throwing capacity at both of us, you may not think our management is so smart for long....

How has our profitability been compared to our peers? Do you not think these guys fumble a great many things? By the way, the top guys get to pick, lead and fire the middle guys. If there is failures at the middle, it is ultimately because the top isn't doing their jobs sufficiently. I'm not all negative, and you know that.

We will all know the future after it happens. Good luck to us all.[/Q

I know you are not all negative, I just think many guys throw around management is dumb here to fast.
 

Smarta$$

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With the monolith carriers, we may need each other (JB and ALK) to be relevant and strong enough. If it doesn't happen soon with DL throwing capacity at both of us, you may not think our management is so smart for long....

How has our profitability been compared to our peers? Do you not think these guys fumble a great many things? By the way, the top guys get to pick, lead and fire the middle guys. If there is failures at the middle, it is ultimately because the top isn't doing their jobs sufficiently. I'm not all negative, and you know that.

We will all know the future after it happens. Good luck to us all.[/Q

I know you are not all negative, I just think many guys throw around management is dumb here to fast.

Frankly I hope it happens. I think we would both be much stronger. I also think it is entirely possible and almost feel like it is already in the works right now.
 

BeachBummer

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Since 2006: delta was a done deal

AA was a done deal
Delta was a done deal again
SWA was a done deal
AA was a done deal again then delta again
We were going to buy va then frontier then we didn't ...

The only thing that's for sure is you won't know until you read it in the USA today on a layover.
 

Smarta$$

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Since 2006: delta was a done deal

AA was a done deal
Delta was a done deal again
SWA was a done deal
AA was a done deal again then delta again
We were going to buy va then frontier then we didn't ...

The only thing that's for sure is you won't know until you read it in the USA today on a layover.

Actually I never believed any of those. That was the bluepilots.com, the sky is falling crowd.

So no, none of that stuff was a "done deal".
 

jetflier

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lot's
CEO Anderson has said that Seattle will be the Atlanta of the west coast. Northwest and Delta helped build up Alaska over the years by code sharing, with Alaska using their financial resources. Now Delta is pushing into Alaska markets affecting their bottom line.

Would not surprise me if Delta walks in after a while and offers the board a deal they couldn't refuse.
 
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