MCO - the next battle + JBLU/FRNT merger

[lowecur]

I'm sorry, I just can't see JB merging with any union carrier. They have a distinctive corporate culture that is worth (to them) more than gates, slots ...

You may be right. Much will depend on the next 12 months and the $150M they have in the bank. They are presently working without a contract, so they do have people who are staunch pro-union. Desperation makes strange bedfellows, and much will depend on how both companies do in the 12 months.

imp:

 

[rayford steele]

Was it Commuter Airlines, Inc Binghamton, NY?

Nope. And it wasn't Colgan either.

 

[BoilerUP]

Wasn't it UAL?

 

[180ToTheMarker]

Anyone remember the last airline that bought Frontier? Ouch........

People Express in '85. The both merged into CAL in '86. Ahh...the good ole' Lorenzo days. uke:

 

[F9 Driver]

Anyone remember the last airline that bought Frontier? Ouch........

For the gory details:

http://fal-1.tripod.com/FL_Death.html

IMHO there won't be mergers in the LCC world, but a code share network of LCCs would be a major player.

 

[rayford steele]

People Express in '85. The both merged into CAL in '86. Ahh...the good ole' Lorenzo days. uke:

We have a winner. Perhaps history is repeating itself. Hopefully with better results.

 

[jetblue320]

The last time I made a prediction like this was at MDW a few years ago and I was hammered by the folks at ATA.

DL has apparently worked out a new deal till 2008 on their remaining gates. I believe their are 16 up for grabs, and there's talk that AirTran and Jetblue are in a bidding process to gain control of at least 10-12 of them. They both have plans to apparently make MCO a major focus/hub. Makes sense with all the new iron coming down the pike, and it will be a tough decision for MCO mgt since both have an integral presence in the city.

I know the braintrust at blue is busy tweaking their model to gain more yield and RASM. They should begin making announcements this month on some of those changes, but it will remain a fluid work in progress until MCO makes their decision.

They still need a hub out West, and it's my guess they could be in preliminary talks with FRNT. Blue has no use for Frontier Express, and stictly wants the 16 gates at DEN. I believe FRNT buys their IFE from blue so the fleet compatibility should be fine providing the powerplants are the same mfg. FRNT is presently valued somewhere north of $255M and has approx $150M unrestricted cash. Of course there would be the usual cast of characters that would try to screw the deal at the last minute, so it may be more trouble than it's worth. I wouldn't look to hear anything serious until Jetblue has it's own house in order and has more 190s on property. Look for this to come to fruition sometime late 2007. Jetblue would hope that many of the spoilers would be in the middle of legacy mergers, so this would lessen the players that could screw the deal.



imp:

I used to enjoy your insightful posts but now I think maybe you are really dreaming.

No deals, no mergers. But keep the faith..............

 

[lowecur]

I used to enjoy your insightful posts but now I think maybe you are really dreaming.

No deals, no mergers. But keep the faith..............

No deal at MCO? Sorry 320, but I believe Jetblue will do what it has to do get those gates. I believe it's an integral part of their strategy east of the Mississippi.

Merger with FRNT? Humor me for a change, it's good for the soul! Besides, never say never in this business.

imp:

 

[IronCityBlue]

engines

the fleet compatibility should be fine providing the powerplants are the same mfg. imp:

Not that this is the bigest factor by any means, but the powerplants are different. Chalk that one up on the "do not merge the two" column. Like you said though, never say never in this biz.

And I agree, the 318 would be toast, unless they got too good of a deal to get ride of them (which I doubt) in which case they could still keep them but logisticaly the 190 is economically superior all around. Enough to more than offset the infamous and sometimes overrated dead horse pilot commonality and parts inventory schpeel.

 

[coogebeachhotel]

Not that this is the bigest factor by any means, but the powerplants are different. Chalk that one up on the "do not merge the two" column. Like you said though, never say never in this biz.

And I agree, the 318 would be toast, unless they got too good of a deal to get ride of them (which I doubt) in which case they could still keep them but logisticaly the 190 is economically superior all around. Enough to more than offset the infamous and sometimes overrated dead horse pilot commonality and parts inventory schpeel.

Spare parts inventories are overrated. Most airplanes and engines are "power by the hour" or warranty. Whatever breaks is already paid for by the "insurance policy". A premium is a premium.