Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy points) at hotels participating in Marriott Bonvoy. The union says the merger will also create more competition against four airlines that currently occupy 81% of the aviation industry, American, Delta, Southwest and United. Alaska could cost close to 10 times that amount, given that its market cap is already $9.7 billion and a merger premium would be necessary. If Southwest bought JetBlue, it would not only remove the #6 US airline (JetBlue has 5.5% share ) from competition, Southwest would also become the largest US airline. Not too many people would miss Sun Country and its planes fit. 2x points on all other eligible purchases. - After two fatal crashes in five months, Boeing is trying hard -- very hard -- to present itself as unfazed by the crisis that surrounds the company. Allegiant Air. It makes more sense for Southwest to focus on organic growth rather than paying that much for an acquisition. (Photo by Stewart F. House/Getty Images), Southwest just pushed back its potential return to service date of the 737 MAX again, to June 6, 2020, stating The revision will proactively remove roughly 330 weekday flights from our schedule out of our total peak-day schedule of more than 4,000 daily flights.. Sure it could. Were expecting M&A to occur. We believe were getting closer to that point and could arrive there if reports about a MAX production cut materialize. - After two fatal crashes in five months, Boeing is trying hard -- very hard -- to present itself as unfazed by the crisis that surrounds the company. I simply cannot see it happening. Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card. Is The White Lotus breaking up with Four Seasons ahead of Season 3? Look, I am sure the executives in Dallas are seriously rethinking their one aircraft type strategy BECAUSE of the Max. And US Airways had much less in the way of contested hubs than an Alaska/Jet Blue hybrid would- they would literally have a bigger competitor in EVERY hub or focus city outside of Anchorage (lol). This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Consumers could benefit from a better flying experience thanks to the perks that JetBlue offers. The airlines reported $117 million and $473 million net losses, respectively, in 2021 on Monday. Southwest paid $1.4 billion for AirTran. Review: Lufthansa Business Lounge Athens (ATH), U.S. Tightens The Screws On Cuban Tourism, Southwest Airlines Technology Trouble Re-Emerges, Guessing JetBlues Next European Destination, Irrefutable Proof The JetBlue-Spirit Merger Hurts Consumers, Hyatt Acquisition of Mr. And Mrs. Smith Platform Aligns Well, Huge Frequent Flyer Programs Struggle At Freddie Awards, American Airlines First Class Passenger Dragged Off Plane After Demanding Pre-Departure Beverage. Travel Industry Coalition Urges Lifting of International Testing Requirement for Vaccinated Travelers. many are wondering which airlines will be the next to consolidate. Anyone can read what you share. Another Southwest Airlines Co. Merger Makes No Sense Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. AirTran earned $250 million in fees . More likely is that WN goes out of the box and finds a way to lease previous gen 737s or hunt out a few that are on the market for sale to bridge the gap. We built Mergr to save people the arduous and time-consuming process of tracking when companies are bought, sold, and who currently owns them. He said Alaska Airlines, AirTran,. Regulators are concerned about more than market share. Southwest serves Mexico, Hawaii and Central America now, just like Alaska. 15 Surprising Reasons To Use a Travel Advisor for Your Next Trip, American Queen Voyages - Deeply Discover the Difference, Copyright 2023 Northstar Travel Media, LLC. Southwest Airlines could use JetBlue, but a merger is unlikely All told I suspect Alaska or Jet Blue would ask for a good premium on their value. Alaska Airlines continuously ranks number 1 in customer satisfaction, despite the criticism of their first class (you dont absolutely need to lay flat during a 4 1/2 hour flight). It makes more . Plus, your own feed of TPG content. Keeping flight attendants and pilots on hand will be easy everybodys qualified. Alaska is not a fan of Airbus with exception of A321. Regulators would probably never approve a merger between, say, United and Delta. Under either deal, the new larger airline would have more market power in certain cities, particularly in Florida, a popular destination where all three airlines compete. As such, we cannot verify the accuracy of each individual entry. Adam Levine-Weinberg owns shares of Hawaiian Holdings, and The Boeing Company and is long January 2017 $17 calls on JetBlue Airways. Alaskas fleet has a lot more in common with Southwest (mostly 737) than Jet Blue (all-Airbus). Opinions expressed by Forbes Contributors are their own. They may have gained some additional routes and some young 737-700s. BNA-SEA, PDX-MSY etc). JetBlue executives said this week that they intended to continue the companys partnership with American in the Northeast. With no end in sight to the grounding and other airlines like Delta (which has none) and United (which has a more agile fleet) stepping into fill the void, Southwest is losing market share. Publicly, Southwest remains upbeat, stating We remain confident that, once certified by the FAA, the enhancements will support the safe operation of the MAX., DeNardi, however, says, Over the last few months, there have been several data points which suggest that Southwest's capacity plans will be impacted more significantly and for a longer duration than previously expectedAs a result, we now see M&A as more likely (70% vs. 50% previously).. There haven't really been any recent rumors about a deal between Hawaiian Airlines and JetBlue, but it does seem like a match that could work. Learn More. Southwest has over 100 737 MAX on order, with growth plans built around that aircraft. One obvious stumbling block: Southwest has exclusively operated Boeing 737 aircraft over its 50-year history, while JetBlue is essentially an all-Airbus (plus Embraer regional jets) airline. Do you see any possibility of merger between Southwest and Alaska or JetBlue? Flight Changes and Cancellations Overview | Southwest Airlines Could JetBlue be an answer to Southwests problems? But that number which was eye-popping when released may be conservative. Some legal experts said that either deal could win the backing of regulators with some compromises like an agreement to divest gates at some airports. 301 Route 17 N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000, U.S., For the airlines that want it done right then RIGHT now is the time to work out brain damage of airlines coming together! Hawaiian serves its namesake state from the West Coast, and JetBlue has a number of routes in the Eastern U.S. A merger could give Hawaiian a nationwide network to feed its bread-and-butter flights to the islands from the West Coast. I just dont see an appetite for that. The real reason why Southwest CEO Gary Kelly is so eager to reach new labor contracts probably has a lot more to do with a desire to keep operations smooth in a period when Southwest Airlines is earning record profits. "[Southwest] wants to be prepared for opportunities in what has historically been an opportunity-rich industry," DeNardi wrote. Such is the modest proposal put forth by Stifel airline analyst Joe DeNardi. This applies to ANY wildcat actions, including slowdown, work-to-rules, withdrawal of enthusiasm (WOE), sickouts, etc. Southwest has performed multiple mergers in the past, most recently with AirTran, whose service model wasnt that much different from Alaskas- regional carrier having to be an LCC because Delta was a big force in one of their markets, competitive with Southwest elsewhere, had a first class cabin. Southwest Airlines Unveils Imua One, A High-flying Tribute, with Gratitude to Southwest Employees and the People in Hawaii They Serve Apr 28, 2023 -Southwest Airlines Co. (NYSE: LUV) today, on the anniversary of its first interisland flights within Hawaii, commemorates beginning a fifth year of serving the Aloha State by introducing Imua One, a Hawaii-themed aircraft livery that symbolizes . "seniority_list" merger integration software, Do Not Sell or Share My Personal Information. Smaller operator, all 737. The colonial #architecture of #mumbai is stunning. Frontier-Spirit merger would be main Southwest competitor at BWI, but Airline acquisition stories are always intriguing, like the perpetual rumor that Warren Buffett would buy Southwest (he does own about 10.2%.)