Who will merge/partner with JetBlue?

[FlyBoeingJets]

Personally and professionally, this most likely will never happen. Dave and David have mentioned that we won't dilute our product in any way. There are too many legalities and liabilities with mergers/code shares...

I agree the current forecast is for all growth to be inhouse. Maybe we'll sit and watch some carriers wither while others keep growing. That would reward the companies with well thought out, and available, growth opportunities. But someone always wants a short cut to market dominance or stability. I'm thinking Neeleman will get impatient or sense some opportunity.

Just a crazy prediction.

 

[B6Driver]

JetBlue will not be bought or merged with any legacy carrier because they choose not to and no current legacy carrier has anything we want. Say what you wish but most JB pilots have enough mileage in the industry and bad memories of airline history to follow such a hollow pipe dream. Not for sale!
Fire away, I've heard it all before.

 

[Skank]

Any ideas about accelerated vesting, or the split? I don't want to be a conspiracy theorist, but the contract mentions accelerated vesting. I wish I knew if it was all about the taxes, or what, but I have no clue. Someone smart enlighten me!

 

[Formula1]

I think that JetBlue will merge or buy out Frontier. Same aircraft type and I believe they even buy their on-board T.V. from the company that is owned by JetBlue- Same aircraft, same product only from a different hub.Now Southwest is coming to town (DEN) in early 2006. I am sure that Frontier is wondering how they are going to compete with SWA out of DEN? They (SWA) are going to be flying to up to 40 different cities and I am sure that alot of them will be similar city pairs to Frontier. I may be crazy but I think that this would be a perfect merger- and you would finally see JetBlue go head to head out of one hub against SWA. Which would you choose- Satelite TV with assigned seating or No assigned seating with no inflight entertainment? I know- you can always bring your Ipod for entertainment.

 

[G4G5]

The similarities between Jetblue and Frontier don't exist. Jetblue flies A320's with IAE 2500 engines. Frontier flies A319 and 318's with CFM56's engines. Their is too much product overlap with the A318 and the EJR195.

 

[furloughfodder]

If they merged with Mesa, ASA, SkyWest, Air Wisconsin?

They wouldn't have to change the pay scales!

Bah Dum Pa Bum!

 

[Flechas]

Does JB have enough cash to buy another airline?

 

[typhoonpilot]

JetBlue code-sharing with somebody out of JFK or starting their own international division is more realistic. They've got the feed at one of the world's pre-eminent international hubs, why not capitilize on that?

TP

P.S. If they get 777s, I'd be willing to come in as an instructor .

 

[Spectre]

...VirginUSA

 

[Eaglepuke]

I cannot see jetBlue codesharing anytime soon. They are concerned with quality and they are not going to let another company they have no control over tarnish there products image.

 

[Bob_Sacamano]

FBJ,

I interviewed with jetBlue on September 20th. While there, I had the opportunity to speak with jetBlue's President David Barger one-on-one for about 5 minutes. Since David Neeleman had been with Morris Air when they were purchased by Southwest, I asked him that exact question. He replied that no-way, no-how, 100% absolutely never, would jetBlue ever buy or merge with another airline. He said they wouldn't be able to preserve the JB corporate culture that way, and they feel that 100% of jetBlue's success has been with hiring the right people. So, I'd say don't waste your time concocting merger scenarios.
Good Luck,
Bob

This may not happen for awhile but I think it's inevitable. Neeleman has done deals before and I think he will do it again when times get tough.


I think JetBlue and Airtran make the most sense for a merger with routes and compensation looking complimentary. But the fleets don't mesh well, IMHO. If it is just a partnership it would work well.

JetBlue--Alaska would be o.k. too. Could be merger. Would be harder to integrate. Not best match. Good match for just a partnership.

JetBlue--SWA. No way. Anti-trust and control issues.

JetBlue--Frontier. I wonder. I don't see much gain for the cost of this merger/partnersip.

What do I mean by a partnership? I don't exactly know. Something more than a codeshare. Something where there is a financial link. World bought North American and they are keeping the companies separate with one owner.

Then there is the possibility JetBlue could use bank money to buy NWA or DAL to get them out of BK. Or the other way around at a later date. Don't laugh, could happen. I think the DAL idea is more doable than the NWA. Both long shots.

 

[typhoonpilot]

I cannot see jetBlue codesharing anytime soon. They are concerned with quality and they are not going to let another company they have no control over tarnish there products image.

Don't kid yourself with the narrow view of U.S. airlines. There are many players in the international arena with a far superior product. JB would do well to codeshare with one or two that serve JFK.

TP

 

[Skank]

I answered my own question with the help of a google search. Acccelerated vesting does indeed remove the liability of stock options for tax purposes. The split, who knows?

 

[typhoonpilot]

FBJ,

I interviewed with jetBlue on September 20th. While there, I had the opportunity to speak with jetBlue's President David Barger one-on-one for about 5 minutes. ....... and they feel that 100% of jetBlue's success has been with hiring the right people. So, I'd say don't waste your time concocting merger scenarios.
Good Luck,
Bob

Hope you get the job offer.

I agree in regards to the merger idea, but code share and/or starting an International widebody operation might be a good move if they did it in the right markets.

In regards to hiring the right people, don't kid yourself. They have the same 10% rule as any outfit. The little RJ dweeb from Comair that interviewed me would be a prime example. He didn't seem to like it when I started out one of my stories with " you remember the summer of 2000 when the Port Authority let all the little airplanes start flying to LaGuardia and it was total gridlock" :laugh: I must have insulted his manhood as he was probably one of those little airplane drivers. Oh well, Joss, as the Chinese say. I'm in a much better place now.

I'll pine over my choice of stories tomorrow as I'm sitting in First Class eating caviar, drinking Dom Perignon, and choosing from one of five hundred on demand entertainment channels on my personal 19 inch monitor while returning to the States for some R&R.

Yeah, you're right JetBlue is a much better product

TP

 

[zkmayo]

I answered my own question with the help of a google search. Acccelerated vesting does indeed remove the liability of stock options for tax purposes. The split, who knows?

I think the split may be an attempt to get the stock price up(of course itll go down with the split itself) and create the sense of more value. The split would lower the P/E ratio and perhaps make the stock more attractive to some. With the accelerated stock options, it saves them tax $ of like $70 mil over the next 8 years although theyll have to pay a $9 mil charge this year. My best guess, Im not a financial guru.

When you movin' back east?

 

[KC-10 Driver]

I don't think that anyone here said that JetBlue has the best product in the world, or that JetBlue has better people than any other airline.

I think the point is that JetBlue's product and hiring practices and culture work, for whatever reason. We do not want to do anything to risk changing that. That is the point behind merger and code-share aversion.

typhoon,

Enjoy your flight back to the States -- I've been able to enjoy the same type of service on many occasions. Definitely nice, but different from what you'll get on JetBlue.

And, yes, the 10% rule does also apply at JetBlue (except maybe it's the 5%, or 7.5% rule!).

 

[bluejuice787]

The stock split was directly related to the option charge assumed going forward. By lowering the stock price the options that are currently being issued are of lesser value and the company will take less of a tax hit.

 

[Giggity]

Hope you get the job offer.

Oh well, Joss, as the Chinese say. I'm in a much better place now.

I'll pine over my choice of stories tomorrow as I'm sitting in First Class eating caviar, drinking Dom Perignon, and choosing from one of five hundred on demand entertainment channels on my personal 19 inch monitor while returning to the States for some R&R.

Yeah, you're right JetBlue is a much better product

TP

Women love me....Men want to be me. If I wasn't such a fabulous pilot, I could be a male supermodel. When I smile, a little flash of light "pings" off of my teeth...... and heads turn. James Bond has nothing on me. I should have my own theme music when I walk.

 

[CUZ]

I sincerely believe also that D&D dont want to acquire, or be acquired by any other carriers. Unfortunately, there is this little phenomenon known as a Hostile Takeover, whereas someone with lots of green stuff says Well pay your shareholders double, triple, quadruple, etc etc the stock price of the company to buy outright. The CEO of an organization has the moral obligation to present these offers to the Board Of Directors. From their, the institutional investors drive the wagon. Hope it never happens. My 2$ worth.

 

[Clyde]

It seems like most people start an airline for one purpose: to make a lot of money and not because they enjoy running an airline.

Just like any other business, money talks, and when push comes to shove at any carrier, the dollar becomes the main objective. Especially when the executives and shareholders can leave with a lot more than what they came in with.