Southwest Rumoured to Have Merger Talks with JetBlue or Breeze

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DALLAS- Speculation about a potential airline merger and acquisition by Southwest Airlines (WN) is gaining momentum after Chris Click, a board member of the airline’s flight attendants union, hinted at upcoming developments following an executive board meeting.

Click took to social media to share insights from the meeting, further fueling rumors about a possible merger or acquisition. He also ran a poll asking followers to weigh in on which airline Southwest might acquire, publicly backing Breeze Airways. However, most respondents favored JetBlue.

Southwest Merger with JetBlue or Breeze?

Breeze Airways led by aviation entrepreneur David Neeleman, has historical ties to Southwest through Neeleman’s previous sale of Morris Air to the airline before launching JetBlue.

For the past nine months, union leaders have increasingly fueled speculation that Southwest is exploring an acquisition. Click’s recent post adds to the growing chatter within the industry.

“Just wrapped up the February Executive Board meeting. Several important initiatives and issues were discussed. Keep an eye out for those communications,” Click wrote. He also teased a live session on February 18 and upcoming training in Oklahoma City, promising more insights soon.

Is it Viable or Random Talks?

Southwest Airlines pilot union engaged legal counsel last year, anticipating a potential acquisition. At the time, speculation centered on JetBlue, as it had before the pandemic. Investors believed Carl Icahn might push the struggling New York-based airline to sell. However, concerns over antitrust scrutiny from the Biden administration and fleet incompatibility made a deal unlikely, Viewfromthewing reported.

Since then, Southwest has undergone significant financial shifts, including selling aircraft and taking on debt to finance stock buybacks. The airline is navigating major operational changes, such as implementing assigned seating and reconfiguring cabins for premium seating.

Given these transitions, an acquisition appears unlikely, particularly under the influence of Elliott Capital-appointed board members.

Historically, Southwest has only acquired smaller competitors. The airline absorbed Muse Air after its founder, Lamar Muse, created a competing carrier, effectively eliminating the rival. Other acquisitions included Morris Air, assets from American Trans Air during its bankruptcy, and AirTran in 2011 after Southwest lost a bid for Frontier.

While no official confirmation has been made, industry observers are closely watching Southwest’s next move as acquisition talks gain traction.

Spirit Airlines Frontier Merger Failure

In a separate case, Spirit Airlines (NK) recently rejected a merger proposal from Frontier Airlines (F9), choosing to continue its Chapter 11 restructuring independently. This latest rejection marks the third time Spirit has declined Frontier’s acquisition attempts, reinforcing its commitment to financial recovery.

Frontier Airlines, based in Denver, recently proposed a $400 million deal to merge with Spirit. If accepted, the merger would have created the fifth-largest airline in the U.S., intensifying competition with the country’s dominant carriers. However, Spirit’s leadership determined the offer was inadequate and opted to advance its restructuring efforts.

Spirit CEO Ted Christie previously criticized the proposal as “woefully insufficient,” according to SEC filings. The rejection underscores Spirit’s strategic decision to focus on long-term financial stability rather than accept a deal it views as undervalued.

Frontier’s latest proposal follows two previous failed attempts. The first, in 2022, fell apart when JetBlue presented a competing bid, derailing the potential merger.

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