And people say politics makes strange bedfellows. Have they ever dabbled in the world of aviation?
I guess all is fair in love and business. And perhaps the best business people leave emotion at the door.
Because frankly, if I am Frontier Airlines and again considering a merger with Spirit after having been spurned once, I’m not sure I could do it. But that’s why I’m not in business. And this is a business decision
Spirit is financially troubled and vulnerable right now, and Frontier sees an opening. Spirit may be having its share of difficulties but the airline is still the top low-cost carrier in the country, and there would be some upside to an acquisition. Frontier recognizes that.
This could be a merger that works for both airlines. It will save Spirit Airlines and enhance the power and reputation of Frontier, but it will be up to the Department of Justice to decide whether a merger tramples on the ground of antitrust law. It will be up to the Department of Justice to decide whether consumers still have a legitimate choice in low-budget carriers.
It will be interesting to see how this plays out from a pricing standpoint. Frontier originally offered $1.8 billion to merge until JetBlue became involved. But JetBlue’s offer of $3.9 billion was just too much to ignore.
It’s understandable, of course. It’s like going from the ugliest pearl or guy on the block to the prettiest. It was a no-brainer at the time for Spirit.
It could be a no-brainer now.
When you view it through the prism of previous airline mergers, this just makes sense. Right time and right place. Frontier has left emotion at the door. Spirit is sacrificing its forehand and its name but, hopefully, it is also saving thousands of jobs.
It would just make for strange bedfellows.
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