JETBLUE'S CONTRARIAN SPIRIT

It has been a while since we have had a "leaked", "unsolicited offer" in the US airline space. Last Thursday, #jetblue offered $3.6 billion for #spiritairlines. The offer comes after an offer from #frontier for Spirit. And after the Northeast Alliance (NEA) was put into action by #americanairlines (AA) and jetBlue.

In announcing the NEA: “Due to the COVID crisis, I fought for and delivered over $40 billion in payroll support to the airlines and its workers to keep the industry from collapsing and prevent massive job loss,” said incoming Senate Majority Leader Chuck Schumer (D-NY). “I am glad to see JetBlue and American Airlines collaborating on innovative solutions to save thousands more jobs in a way that also expands New Yorkers’ travel options.”

You know what Chuck -- this was a shrewd move for AA to put Humpty (US Airways) back together again after its great fall. And do it on the cheap. And do it while having the ability to walk away from jetBlue if it did not like what jetBlue might be doing somewhere across its business. Yes, at any time AA could take its toys and go home all the while leaving jetBlue with little. Talk about the freedom to exit.

Words like juggernaut were used to describe a combined Frontier and Spirit. Really? When I was first asked my description was YAWN! Just a bigger similar product. Maybe disciplining fares in some markets but there are just not that many left. Or, making sure that the new entrants will struggle to get traction?

The reporting of the jetBlue - Spirit possibility is like reading the news in 2010. All the same reasons are being offered as to why a merger is good or bad. You know: IT systems are not compatible; a bigger #5 airline will be better able to compete with the Big 4; cultures are complicated as if cultures between jetBlue and AA and/or Frontier are perfectly compatible; it will lead to higher prices and lower wages - WOW; and of course, seniority integration will be difficult.

Cynical - yep!

The arguments being put forward about jetBlue's costs going even higher because they would have to raise Spirit's wages are mind numbing. Are the experts telling us that Spirit and Frontier would NOT have had to do the very same to attract pilots and other skilled and less-skilled workers in order to fund their growth story? The competition for a workforce will be the most important issue in front of this industry for at least the next 24 months.

Some airlines will need to tell one hell of a story to DOJ. All airlines will need to tell potential employees why their airline will provide for a much better career path than joining another carrier.

It is 2022. A catharsis has exposed much that is wrong with the industry. Why are we not asking questions like the best one offered in the press thus far about defining a "unique rivalry"?

Much more to come about product competition and other thoughts nobody wants to write about. Gotta stop, the Masters is on.

#swelbar