Spirit(Oaktree/Indigo) buys Air Jamaica

[600rvr]

http://finance.yahoo.com/news/Report-Spirit-Airlines-buys-apf-243447222.html?x=0&.v=1

SAN JUAN, Puerto Rico (AP) -- Discount carrier Spirit Airlines has reportedly acquired Air Jamaica in a government-led effort to privatize the island's money-losing national airline. The Jamaica Gleaner newspaper says a deal was reached after a committee charged with the airline's privatization submitted its report. The newspaper cites unnamed government sources. Spirit spokeswoman Misty Pinson was contacted by The Associated Press on Saturday and refuses to comment. Prime Minister Bruce Golding has said Air Jamaica was losing $141 million a year.
Spirit is privately owned and flies to 36 cities in the U.S., Latin America and the Caribbean.

 

[NEDude]

Heard rumors this would be coming, just with a different buyer...

 

[:-)]

Heard rumors this would be coming, just with a different buyer...

JetBlue can't win them all.

 

[castle bravo]

Let the whipsaw begin.

 

[clickclickboom]

Kind of saw it coming from jb with the recent stock offering.. I heard that the price it was worth vs just growing our operation was less than they wanted.


Lets look into the crystal ball anybody have any ideas

 

[HalinTexas]

Wow. Last I heard a Chinese group was looking at them. Good luck with that, Spirit.

 

[johnsonrod]

Watch everyone at Spirit bid for the Kingston base. Your money can go further there than in Detroit...

One problem with Air Jamaica is that it is basically a jobs program for the government. It would be worse if the Jamaican employees actually earned more than minimum wage (they are dirt cheap).

This is somewhat surprising because the competition has been heating up in Jamaica recently with JetBlue jumping into the mix. I would think that would place even greater pressure on yields for the national airline. Perhaps the Jamaican government paid Spirit and its investor partners to take it off their hands...

 

[Headfake14]

JetBlue can't win them all.

why would we have wanted to aquire Air Jamaica?

 

[Anonymous2]

JM has been killing the jamaican taxpayers for decades. The only reason JM is still around today is national pride. The government of jamaica just couldn't handle this financial burden anymore. So here come spirit airlines as the knight in shining armor. I hope everything turns out ok for you all at Spirit. A u.s. airline merging with an international carrier, who know's what's next. Hopefully its a warm reception from the jamaican side of things, including the jamaican passengers.

 

[huncowboy]

JM has been killing the jamaican taxpayers for decades. The only reason JM is still around today is national pride. The government of jamaica just couldn't handle this financial burden anymore. So here come spirit airlines as the knight in shining armor. I hope everything turns out ok for you all at Spirit. A u.s. airline merging with an international carrier, who know's what's next. Hopefully its a warm reception from the jamaican side of things, including the jamaican passengers.

Why would Spirit merge? Anyways for now it seems this deal is not final still.