Can a merger of competing airlines improve customer choice and lower prices? History suggests, time and again, the answer is no. But that did not stop Avianca from suggesting that a buyout of Viva would do precisely that.
merger
Spirit takes a pass on JetBlue’s buyout offer
Spirit Airlines sees a merger with JetBlue as unattainable. Not for lack of interest, mind you. JetBlue’s cash offer of $3.6 billion still stands. But doubts around the likelihood of regulatory approval have Spirit’s Board of Directors recommending that it continue to move forward with the previously planned Frontier merger instead. Assuming even that can get past regulators.
A JetBlue-Spirit merger almost certainly means higher fares
JetBlue’s arrival in a new market typically sees fares charged by other carriers drop. Where JetBlue and Spirit overlap, however, it is inevitable that fares will rise. They have to in order for JetBlue to realize the net benefits it proposes.
JetBlue proposes a Spirit buyout, besting Frontier’s bid
JetBlue finally formally announced its long-anticipated service between Boston and London to launch this summer. And, in a twist no one really expected, that turns out to be the smaller news item for the carrier this week. The New York Times reports that JetBlue made a $3.6bn stock offer for Spirit Airlines, besting the deal announced by Frontier in February.
Frontier, Spirit announce plans to merge
Frontier Airlines and Sprit Airlines intend to merge, creating a new 5th largest airline in the US.
Scratch another IFC player from the commercial market
The Dubai Air Show provided plenty of positive news in the in-flight entertainment and connectivity world this week, but also some bad news. A second player is now out of the commercial aviation connectivity business.
Viasat, Inmarsat to merge, creating connectivity behemoth
Consolidation finally arrived to the in-flight connectivity world, and it arrived in a massive way. Viasat agreed to buy Inmarsat in a deal valued at $7.3 billion. Subject to typical regulatory and closing conditions, the companies hope to close the transaction in the second half of 2022.
IFPL and Cobalt Aerospace announce merger
Passenger interface specialist IFPL Group is expanding its portfolio of offerings with the acquisition of Cobalt Aerospace. Together, the two companies will offer customers a broader range of products and services that will allow operators to enhance their in-flight passenger experience offering.
LATAM scraps A350 fleet
LATAM never could really figure out what to do with its fleet of A350s. And now the fleet is no more. The company plans to remove the A350 from its Brazilian operations effective immediately.
Regulators squash Transat/Air Canada merger plans
Questions about the impact to competition hampered the proposed Air Canada/Transat merger from its announcement. Ultimately they killed the deal.