Further Airline mergers

It seems as if the big four in USA (DELTA, UNITED, AMERICAN, SOUTHWEST) will never be allowed to merge with one another. How about Spirit and Frontier? Or how about JetBLue and Hawaiian?

In the past few years, Delta Air Lines has taken a relatively unique route toward improving its position in foreign markets. The airline has invested money in several airlines across the globe, including Virgin Atlantic in the U.K., China Eastern in China, Gol in Brazil, and Aeromexico in Mexico.

In early 2015 Delta Air Lines and Aeromexico filed applications to set up a joint venture for flights between the U.S. and Mexico. Essentially, this structure would allow them to operate as a single airline on these routes.Shortly thereafter, Mexican regulators approved the proposed Delta-Aeromexico joint venture. The approval did come with some conditions. Most importantly, the two airlines will have to give up all eight of Delta's slot pairs at Mexico City's heavily congested airport.

Delta and Aeromexico have announced that they will accept these conditions. Assuming that the U.S. also approves the joint venture -- which is not guaranteed -- Delta and Aeromexico could begin cooperating later this year.

So there may be an opportunity for Volaris and Interjet to expand. Delta is pressuring Aeromexico to give up on the economy passenger to pursue more business class passengers.

Given the massive growth potential of the Mexican air travel market, there's room for multiple winners in the years ahead.

Volaris understandably is looking to expand into cities with significant Mexican American population

Volaris now serves 5 Texas airports (but still none in New Mexico, the state with the highest percentage Latino population in the USA). Volaris now flies to 24 cities in the USA plus San Juan PR.
http://www.volaris.com.mx/en/travel-with-volaris/our-destinations/cities-you-can-reach-with-volaris/

Interjet is flying to 8 USA destinations
https://www.interjet.com/mapa-destinos-interjet.aspx

Aeromexico has added a 4th European destination (Amsterdam)

Merge any airlines you want to, but please keep their computer systems separate.

Quote: Pacomartin

It seems as if the big four in USA (DELTA, UNITED, AMERICAN, SOUTHWEST) will never be allowed to merge with one another. How about Spirit and Frontier? Or how about JetBLue and Hawaiian?

I was thinking Jetblue and Alaska Airlines merging. Jet Blue seems to do well in the east and Alaska does well out west.

Quote: DRich

I was thinking Jetblue and Alaska Airlines merging. Jet Blue seems to do well in the east and Alaska does well out west.

Incompatible fleets. Jet Blue is all A320/1 and Embraer regional Jets. Alaska is all 737. But Alaska has the same problem with Virgin America, which it recently acquired.

We'll see how that goes.

Quote: DRich

I was thinking Jetblue and Alaska Airlines merging. Jet Blue seems to do well in the east and Alaska does well out west.

What about mergers across national lines? Particularly US, Canada and Mexico, but not to exclude Panama. International mergers seem to be the coming trend, particularly in Europe. British Airways and Iberia, Air France and KLM,

2004 - KLM Royal Dutch Airlines Acquired by Air France
2005-2007 - Lufthansa purchased Swiss Int'l Airlines
2008 - Lufthansa purchased 19% of Jetblue
2010 - International Airlines Group was formed by the merger of British Airways and Iberia

2009 - Avianca Merged with TACA in South America
2012 - LAN and TAM merged to form LATAM in South America

VivaAerobús is the smallest national Mexican airline with only 21 planes (19 Airbus with 2 B737s to be retired. It is partly owned by the founders of Ryan Air
Spirit Airlines also has an all-Airbus fleet of 87 planes.


VivaAerobús has terminated flights to 8 USA airports, and now currently only flies to George Bush Intercontinental Airport in Houston

Spirit Destinations in Mexico and Central America
Mexico
Baja California Sur Cabo San Lucas (Los Cabos International Airport)
Quintana Roo Cancún (Cancún International Airport)
State of Mexico Toluca (Lic. Adolfo López Mateos International Airport)

Central America
Costa Rica San José de Costa Rica (Juan Santamaría International Airport)
Guatemala Guatemala City (La Aurora International Airport)
Honduras San Pedro Sula (Ramón Villeda Morales International Airport)
Nicaragua Managua (Augusto C. Sandino International Airport)
Panama Panama City (Tocumen International Airport)
El Salvador San Salvador (Monseñor Óscar Arnulfo Romero International Airport)

Quote: Nareed

Incompatible fleets. Jet Blue is all A320/1 and Embraer regional Jets. Alaska is all 737. But Alaska has the same problem with Virgin America, which it recently acquired.

We'll see how that goes.

I'm surprised that Jetblue has Embraer's and doesn't contract that out to a regional carrier.

Quote: DRich

I'm surprised that Jetblue has Embraer's and doesn't contract that out to a regional carrier.

I'm not sure that Jetblue could predict how fast they would grow

On Apr 2013 the president and CEO of JetBlue Airways, David Barger , said he is “disappointed” with the carrier’s fleet of Embraer 190s and says the airline continues to struggle with maintenance costs on the 100-seat E-Jets. “We should never have been the worldwide launch customer of a new airplane,” David Barger said in an April 21 address to the Harvard Business School’s Aerospace & Aviation Club in Boston, adding, “We weren’t big enough.” Barger also expressed unhappiness with the Brazilian aircraft’s General Electric CF34 engines. “We’re not pleased with what we’re seeing on the Embraer [with] the GE motor,” he said. Barger, who stretched out deliveries of the E-190s after becoming CEO in 2007, stopped short of saying he regretted ordering the aircraft. He notes that the 190s are optimally sized for JetBlue’s expansion in Boston and other key growth markets.

Basically David Barger's predecesser ordered 100 of the Embraer's and they have been fairly dissappointed with them. As of right now they stopped deliveries at 60, but the contract still exists and they may be forced to take more of them from 2020 to 2022.

In October 2005, JetBlue's quarterly profit had plunged from US$8.1 million to $2.7 million largely due to rising fuel costs. Operational issues, fuel prices, and low fares, JetBlue's hallmark, were bringing its financial performance down. In addition, with higher costs related to the airline's numerous amenities, JetBlue was becoming less competitive. JetBlue experienced its first ever quarterly loss during the fourth quarter of 2005, when the airline lost $42.4 million, enough to make them unprofitable for the entire year of 2005. The loss was the airline's first since going public in 2002. The 60 Embraer jets were delivered from 19. Dec 2005 to 29. Oct 2013

Jetblues fleet of Airbus A321's began deliver on 07. Oct 2013. They received #30 on 20. Jul 2016, and are due to receive 2 more.

Of course giving speeches about the difficulties with an aircraft makes it difficult to sell them.

Quote: Pacomartin

Of course giving speeches about the difficulties with an aircraft makes it difficult to sell them.

I wonder specifically what their beef is. Given the widespread use of Embraer regional jets, it seems like a decent, quality product overall.

The times I flew in one (twice the same day), past the somewhat smaller interior and the 2-2 seating (which I like), it felt exactly the same as a bigger jet.

Quote: Nareed

I wonder specifically what their beef is. Given the widespread use of Embraer regional jets, it seems like a decent, quality product overall.

Jetblue was the launch customer of the 190 model, but the whole series has delivered over 1200 planes (of which Jetblue only operates 60).
Here is an early article that says that Embraer was only hearing complaints from Jetblue over particular problems.

Quote: 13 MARCH, 2007 BY: MARY KIRBY

https://www.flightglobal.com/news/articles/embraer-tackles-jetblue-e-190-software-glitches-212551/
Embraer tackles JetBlue E-190 software glitches
Manufacturer begins work on upgrade and prepares to talk to other operators
Embraer has begun upgrading software on JetBlue Airways' fleet of 26 E-190s, as persistent glitches continue to be experienced by the carrier.

Embraer declines to discuss the cost of the upgrade, pending an assessment of the level of materials and labour involved. But it has said all new-delivery E-190s will include the upgrade "to avoid future problems". It also says that although other operators of its E-170/190 aircraft have not reported the same problems as JetBlue, it is not clear whether they may eventually experience the same software issues. The manufacturer therefore expects to discuss the upgrade with its customers.

Quote: Pacomartin

Here is an early article that says that Embraer was only hearing complaints from Jetblue over particular problems.

Being the first to operate a type, means you have a good chance of discovering flaws that went past the very extensive testing. But it might also be something peculiar to Jet Blue's training and/or operations.