Spirit Merger with Frontier
So excited about this deal. I kept telling people this was gonna eventually happen. Advisors are MS. Barc, and Citi. What are your thoughts on this?
I think this will be subject to some anti-trust suits, so we'll have to see. Going to a comparable bank to Citi/Barc and would have killed for this deal.
The NewsWire article says they'll make America's "most competitive ultra-low fare airline." Obviously mergers like this are anti-competition, but whatever.
The flying experience is going to reach all-time levels of shitty.
lmao, no shit, their business model is cost leadership / volume - aka the shitter the PF experience, the more accretive to PF cash flow
dude I use Spirit to fly because it is dogshit cheap and I love how shitty it is because it really makes you remember how little you paid, relatively speaking. However, I'll give you a very quick, intuitive and one-off analysis: the merger is not going to happen. I am convinced something like this is bound to get blocked by the FTC. Frontier and Spirit are universally known as the cheap and efficient airlines and they are the ONLY ones of their size, ranking and recognition. Unless some other tech company steals the spotlight, it is not going to go through.
Also, this is about as legally anti-competitive as it gets.
No offense, but how are you in IB but still fly Spirit?
money doesn't grow on trees moron
The company jet was unavailable.
Sorry for the dumb question but how is this anti comp? Wouldn’t it only be anti competitive if they then increase prices to normal airlines prices? Wouldn’t that be counter intuitive to what they are pursuing?
Yeah, and once they are merged they can do just that. In fact, if they don’t have any other low cost competition, I dont see why they shouldn’t
Are they really that low cost when you include all the extra fees? They have a different pricing model for sure, but for the average flyer I dont think the price difference is large enough to really make this all that anticompetitive.
My only thought here would be how much would the FTC take into consideration that these are two low cost carriers vs how much share this combination will have in the airline market overall. I know they'll consider what kind of impact this will have on consumers but I'm just not sure whether they'd consider the exact consumer segment which flies these two airlines vs any airline passenger distributed along all airlines. And sure I know the FTC will probably assess everything I mentioned but I wonder how well their anti-trust council will be able to argue that in the grand scheme of air travel, this deal isn't as competitive. Will be very interesting to see.
Agree with poster above this is looking DOA, feel bad for whatever analysts are about to get ground to the bone for this shit.
"We are thrilled to join forces with Frontier to further democratize air travel" - 100% trying to pander to the FTC lol.
Seriously though, M&A peeps, what is the over/under this passes?
"Democratize air travel"
Please god no, I enjoy hanging out in the Delta sky club and pay extra specifically so I don't have to see all the obese people still wearing pajamas get into fights at the discount air lines.
Dangerously based
Lounge bros are not a comp
i enjoy hanging out obesely in my pajamas in the lounge that i got into with my chase sapphire while flying spirit, drinking champagne and laughing at the corp fin analysts who arent taking advantage of the free booze
I bet working with the respective corporate dev team, boards, and CFOs of these dog chit shyster companies is an absolute nightmare for junior bankers. I am traumatized even imagining it.
lol. Obviously I, as an intern wish I could be an MD on this deal lol.
Lol this will not get blocked by the FTC….
Airline mergers have frequently been blocked by FTC in past and get extra scrutiny bc it’s a consumer facing oligopoly
do you live under a rock?
I didn't realize you could have an oligopoly on shittiness
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