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Instead Of Buying Spirit Airlines, JetBlue Should Exit The Airline Business

Jul 29 2022

If it’s true that JetBlue really faces the choice of grow or die, and this is the only way to grow, then they should be thinking about other ways to deploy their capital. There is nothing written in stone requiring JetBlue to grow in the airline business, or even to maintain their current airline operation. As a company JetBlue should find the most profitable ways to deploy its assets.

JetBlue should consider pivoting away from the airline business if they can’t earn a good rate of return in the airline business. Surely they’d even do better for shareholders by giving the cash used in the Spirit deal to Jack Bogle.

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