United Airlines CEO Scott Kirby says that they’re in discussions with another airline about acquiring assets.
“And as I look at assets, maybe they will, maybe they won’t come available. We’ve actually even had some discussions with one airline about buying some,” he said, but declined to provide further information or the identity of the company
This is either:
- Spirit Airlines: and would mean either gates at Fort Lauderdale – if they could get enough gates to build a strong operation that would meet a long-standing desire for United – or slots at New York LaGuardia, the other thing of value that Spirit has. That presumably becomes available only if the U.S. government doesn’t bail out Spirit.
- JetBlue: They would presumably be looking to buy New York JFK slots. United already expects to get some New York JFK slots from JetBlue as part of their partnership starting next year. That will allow United to return to the JFK market, which former CEO Jeff Smisek pulled out of.
Smisek misunderstood the value – saw United losing money on the flights there, but not realizing they would lose business from high value customers on the West Coast who didn’t want to fly to Newark and they’d lose relevance for a segment of New Yorkers would wouldn’t be as attracted to United’s credit card.
Update: another possibility is Southwest Airlines who is leaving Chicago O’Hare and currently uses gates M2/M5 in terminal 5 and I believe those are preferential use (not common use). Those would be very inconvenient gates for United.
Kirby says they’ve had discussions with one airline, which surprises me – that they haven’t had discussions with both Spirit and JetBlue. We know there have been discussions with Spirit, because United already bought gates from Spirit at Chicago O’Hare, after American Airlines bought gates there from Spirit.
Regardless, this is an unprecedented time for mergers and acquisitions frenzy in the industry, directly involving the President of the United States – Kirby raised the possibility of buying American Airlines with President Trump, Trump is discussing having the federal government acquire Spirit, and American is talking deals with Alaska Airlines.
Here’s the full interview with Kirby:
(HT: Enilria)
(Insert “Why not both?” meme here.)
He looks like a clown with those athleisure sneakers and the suit, with pants that don’t even fit. What a wholly unserious person.
other airlines are making those same calls.
The difference between Kirby and everyone else is that Kirby is incapable of keeping his mouth shut because he desperately wants to be seen as the smartest guy in the room even though he just copies other people’s strategies.
Tim
What if UA bought Delta’s SkyPeso program? Some mathematically challenged people actually seem to think that SkyPesos are valuable!
Jon
you can’t stand that DL actually got a far better loyalty and credit card contract than UA
AND
DL carries far more corporate traffic than UA – and corporate travelers (or anyone that has their tickets paid for by someone else) accept the loyalty points as a bonus.
I have to agree with Tim Dunn’s comment in this case. It seems like every week we hear Kirby announce something.
It’s definitely JBLU that Kirby is after.
He doesn’t want JetBlue. They haven’t made a profit for years and over $9 billion in debt.
He only wants gates and slots at JFK.
As a Fort Lauderdale resident, I’d love it if UA ramped up service at FLL to give a better alternative to the horrid AA hub at MIA.
I wonder if it’s Alaskas A321s? In exchange for earlier Boeing Delivery slots maybe?
One has to think outside the box.
Wow. You can’t make this stuff up.
TIM DUNN is criticizing Kirby for wanting “to be seen as the smartest guy in the room.”
The irony police are on their way, Tim.
This magachud is so short and so small. It’s one of the reasons why his so absolutely pathetic. A short white man with a complex is a dangerous and pathetic thing.
I can’t wait till it all comes crashing down for the short “king”.
Try and “beat” AA all you want kirby but is ok will always be taller.
@Tim Dunn as someone who spent 18 years traveling for work, those points were not a bonus, there were something I factored into the calculus of my compensation. Explain how it’s a bonus to get points for traveling on my own time at all hours of the day and night, on weekends and holidays just to serve corporate overlords who fly first class on a 2-hour flight while they force the rest of us into coach for a six hour flight and then expect us to do work on the plane.
No, not a bonus. Not when companies expect so much from their employees.
agree w/ your rationale and that is a common response but the point still remains that when someone else pays for your ticket and dictates on whom you travel and how their travel money is spent, you receive the benefit although relatively small.
and the calculus is different in how loyalty programs are valued depending on who pays for it. The party that pays for corporate travel generally has no interest in the loyalty program.
@Denver Refugee — Por que no los dos? (Excellent memes, sir.)
Presumably JetBlue or maybe part of Spirit. Or he’s just blowing hot air.
@George Nathan Romey — Now THAT’s an idea! United hot air balloon service!
It’s Alaska. No conflicts. Gets Seattle back for a base, improves fares to Hawaii by reducing traffic. No DOJ issues.
@Tim Dunn and others butt hurt about Kirby’s ability to generate free media space $$$; He was asked a direct question and answered it.
Every airline that can afford looking at fire sale assets should be looking at the potential or their leadership should be questioned .
He was asked if United was.
This isn’t a news story..
“CEO LOOKS TO BUY SOMETHING”…. ok?