Strategy & Potential Buyers?
$Spirit Airlines (SAVE.US)$ still has $1 billion of cash, a 200+ plane fleet, a strong network infrastructure, and money owed to them from the Pratt Whitney engine problems. Spirit’s market cap is below $200 million in comparison to the $3.8 billion $JetBlue Airways (JBLU.US)$ was willing to pay for them as recently as 03/04/2024 when they dropped their appaeal and paid SAVE and additional $69 million break-up fee. $Frontier Group (ULCC.US)$ was willingly to pay $3+ billion in stock and cash with a $250 million break-up fee until their merger agreement was terminated in June 2022. Interestingly enough, Spirit’s debt and liquidity right now isn’t significantly different than it was when JetBlue & Frontier were in a bidding war for them. With interest rates dropping and a new administration that won’t oppose mergers likely to take office, I wouldn’t be surprised to hear a merger announcement before the end of the year.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Writer, Producer, Professor, Investor, and Protector of Animals—especially cats 🐈⬛
NOT a financial advisor
84Followers
52Following
538Visitors
Follow