Tragic Acquisition in 2024: Is Spirit Airlines’ Best Destination Going Bankrupt?
$Spirit Airlines(SAVE)$ dropped 47.09% on Tuesday trading.
The company encountered its first acquisition failure, as a federal judge blocked the sale to $JetBlue Airways(JBLU)$ on antitrust grounds. The deal was set to expire on January 28, but will automatically extend for six months.
Prior to this, SAVE's cash flow was not strong and its operations were poor, putting the company at risk of bankruptcy if it cannot find another buyer for acquisition. Additionally, there is a significant amount of medium- to long-term debt maturing in 2024-2025, posing a serious threat to the company.
This also has some impact on another acquisition case involving $Hawaiian(HA)$ .
However, regional airlines may face lower antitrust issues and both $Alaska Air(ALK)$ and Hawaiian Airlines are not low-cost carriers, which may lead to different pricing strategies and therefore a more favorable market outlook.
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- DouglasMalan·01-21This is devastating!LikeReport