Pretty sure he is on the record as saying it didn’t work well. So I don’t get how Southwest is incompatible but Jet Blue is.Īsk Doug Parker how much fun it was running a network with zero between Phoenix and Charlotte if you think hubs on coasts and zero between them work. Southwest serves Mexico, Hawaii and Central America now, just like Alaska. Alaska’s F model (standard domestic F) is totally different from Jet Blue’s (transcon lie flats and all-Y just like Southwest), and t FF programs are also totally different (if anything Rapid Rewards is closer to Mosaic), so I don’t see why that’s a barrier for one but not the other. The lounges are something NEITHER Jet Blue and Southwest do. Alaska’s network complements Southwest in the Pacific Northwest and California more than Jet Blue’s tiny little hub in Long Beach + hubs on the other coast. Alaska’s fleet has a lot more in common with Southwest (mostly 737) than Jet Blue (all-Airbus). Its style and company profile do not present any viable merger candidates in the United States. #Allegiant vs southwest airlines reviews freeFrom a single cabin of service to free checked baggage to no redeyes to an aversion to aircraft diversity, Southwest is a lone star airline that dances to the beat of a different drum. At nearly every level, the business models of JetBlue and Alaska are different than Southwest’s. The idea that Southwest would merge with JetBlue or Alaska is fanciful at best and delusional at worst. We believe we’re getting closer to that point and could arrive there if reports about a MAX production cut materialize. If Boeing announces further MAX return-of-service delays and/or a 737 MAX rate cut, that would increase risk to Southwest of a multi-year constraint on its capacity.Īt some point, that risk becomes strategically unacceptable to Southwest. With a complementary narrowbody feet, Alaska Airlines and JetBlue are best positioned to absorb or be absorbed by Southwest.įearing this, Stifel, a major investment banking firm, downgraded Southwest yesterday with the following warning:Īn acquisition by Southwest motivated by a desire to diversify away from the Max creates significant risks in the near term for LUV… Thus, Southwest will merge or acquire another carrier in order to stem the flow to its competition. Problematically for Southwest, the eventual re-certification of the 737 MAX may not re-balance the current trajectory. 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. As the 737 MAX problems continue and Southwest is forced to cancel an increasing number of flights (as more deliveries are deferred), the financial implications grow. Southwest has over 100 737 MAX on order, with growth plans built around that aircraft. Rumors are swirling that Southwest Airlines may solve its lingering Boeing 737 MAX problem by acquiring another airline.
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