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Reaching New Heights: The Analytics Behind the JetBlue-Spirit Airlines Acquisition
What does JetBlue gain strategically for the $3.6B proposed purchase, according to the data?
JetBlue surprised the business world by making an unsolicited $3.6B bid for Spirit Airlines after Spirit received an initial buyout proposal from Frontier Airlines this past February.
A quick surface-level reaction for anyone that has flown regularly might be that there’s not strong strategic overlap between the brands. JetBlue typically services main hubs with average flying customers. Spirit is known for catering to budget-conscious customers in sometimes out-of-the-way airports.
This thinking is backed up by commentary from the JetBlue President herself. Quoting from the WSJ article:
“At first glance you may not think we’d make a great pair,” Mr. Hayes and JetBlue President Joanna Geraghty wrote in a memo to employees. “When you dig deeper, you’ll realize we could be a perfect match.”
So, let’s dig deeper, using data. What makes this a perfect match (if anything)? What does JetBlue gain from the acquisition? What does a combined data and strategy view look like?
