Is JetBlue Out of the Merger Picture?

JetBlue Airways, which had its Northeast Alliance with American Airlines disbanded and its merger attempt with Spirit Airlines effectively blocked by a federal court, might not be out of the picture when it comes to collaborations with other airlines.

The Beat of Hawaii is reporting on an old aviation rumor that Alaska airlines, which recently merged with Hawaiian Airlines, is interested in acquiring JetBlue Airways.

It would appear to be difficult from a regulatory standpoint but the synergies also might be there.

Aviation is a very insular business, and this has been talked about for years. Alaska Airlines is strong on the West Coast, Hawaiian Airlines practically owns the skies in Hawaii, and JetBlue is the king of the northeast. If they were to merger and becomes a three airline conglomerate, it could be a powerhouse that covers almost every geographical region of the world. Especially with Alaska Airlines already making plans for the Pacific Rim, Hawaii getting the Asian market and JetBlue now going to Europe.

JetBlue has long maintained that the only way for it to grow is to expand and to expand through mergers and acquisitions. It is looking to break into the top four and join American, United, Delta and Southwest as the biggest domestic airlines.

There will be regulatory approval challenges of course, but the incoming Trump administration seems more amenable to airline mergers than previous administrations.

A merger could provide consumers with more options, including in Hawaii.

But it could also be viewed as more daunting and complex than previous merger attempts. JetBlue has struggled in that regard, but Alaska has proven to be successful with collaborations with Virgin America eight years ago and now Hawaiian.

And Alaska Airlines said it has big plans for Hawaiian Airlines.

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