Allegiant Spirit Merger - happening s...

Allegiant Spirit Merger - happening soon?

Created by Merger mania on Jul 2, 2012

110 votes

Click on an option to vote

YES Allegiant needs to jump now to replace MD80's

YES Spirit's name is consumer & wall street mud

NO Just a rumor that they might

NO This would be bad for Allegiant

Who knows, might make sense!

Glad Frontier is not involved in this mess!

Midwest Traveler

United States

#1 Jul 2, 2012
Well there are more than one way to modernize a fleet when fuel costs are lower like they are now. Seems to me this is a good time do this merger. Keep the Allegiant name, and moderize the fleet with Spirit's newer Airbus's.

Holding companies and low cost models do not work.

Evidence of this is Republic Airways Holdings which almost caused the end of Frontier, and Global Aviation Holdings which almost has killed World Airways and North American charter business, and did successfully kill ATA.
Midwest Traveler

United States

#2 Jul 2, 2012
Additionally this would not be good for WN as any ULCC will siphon yields from the numbers and masses WN needs to transport to maintain a profit.

Even if these ULCC's do not compete in exactly the same cities. We know that low fare passengers will drive 50-100 miles to save a few bucks. WN found that with the WN effect already.
Spirited Away

United States

#3 Jul 3, 2012
Does Spirit have the resources to be the acquirer of Allegiant and take their name in a merger?

I always thought Allegiant was stronger.
Market Capitalization

Murfreesboro, TN

#4 Jul 4, 2012
Spirit 1.49 Billion
Allegiant 1.33 Billion

Outside equity interests in either to stir the pot? Who knows?

Obviously Spirit is not big enough to do this alone. It would have to be a stock equity swap with Spirit being in control, or it would be and outside investor who would steer the happenings.

Unless of course the higher ups at Spirit are ready to jump ship with any profit and robbery of the company they can as the writing does seem to be on the wall for the Spirit brand.

Market Capitalization however is not a 100% true reliable source of the real strength of a company and brand.
Market Capitalization

Murfreesboro, TN

#5 Jul 4, 2012
Could Indigo Partners & Oaktree Capital Management be getting cold feet in their investment at Spirit?
Market Capitalization

Murfreesboro, TN

#6 Jul 4, 2012
Fleet 44 - Allegiant
Fleet 42 - Spirit
Market Capitalization

Murfreesboro, TN

#7 Jul 4, 2012
By Comparison

SkyWest Inc. out of Utah has +710 aircraft.
Stuck on Spirit n Houston

North Las Vegas, NV

#8 Jul 10, 2012
You guys home yet?
Spirit supporter

Fort Lauderdale, FL

#9 Sep 23, 2012
I say keep the spirit name....we are growing and taking over and making more money than most!!!
Carlos Villar

Midlothian, TX

#10 Sep 23, 2012
What's the point. Both are independently profitable. Bigger isn't always better.

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