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JetBlue And Alaska Airlines: A Superior Match? (NASDAQ:JBLU)

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JetBlue And Alaska Airlines: A Superior Match? (NASDAQ:JBLU)


Laser1987/iStock Editorial through Getty Photos

Popping out of earnings season, I discovered JetBlue (NASDAQ:JBLU) to be one of many least likeable airways. Whereas pilot shortages are a actuality for lots of airways, some actually handled it higher than others to execute their summer time schedules. From all airways’ earnings I lined or adopted, JetBlue had the weakest response to pilot shortages seeing options in early retirements, lease returns and upkeep.

how JetBlue has been dealing with issues, I’ve seen little cause why the corporate ought to embark on a mission to amass Spirit Airways (SAVE) for which I foresee important hurdles to combine the airline if the takeover ever receives a inexperienced mild. One airline that had quite a lot of points these days with sustaining schedule is Alaska Airways (NYSE:ALK). Ironically that’s an airline that may very well be a greater match for JetBlue than Spirit Airways.

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A tough integration path

There are numerous the reason why I don’t assume that JetBlue and Spirit Airways are a very good match. I’ve described these in a report printed in April 2022. JetBlue intends to combine Spirit Airways into its airline, however I foresee important challenges integrating an ultra-low-cost service equivalent to Spirit Airways into the JetBlue model particularly given how lengthy it has taken for JetBlue to finish its personal cabin overhaul program. On prime of that, one can surprise how helpful it’s for JetBlue to amass one other service and attempt to combine it, whereas it presently is going through important challenges flying all its plane.

I don’t view JetBlue and Spirit Airways as airways which are appropriate. Nonetheless, there are two the reason why a mix does make sense. Evaluating the fleets, earlier evaluation demonstrated that taking a look at turbofan suppliers for the prevailing fleet and future deliveries JetBlue and Spirit Airways are literally appropriate.

JetBlue and Spirit Airlines routes

JetBlue and Spirit Airways routes (FlightConnections/The Aerospace Discussion board)

The opposite cause why it is sensible for JetBlue to bid for Spirit Airways has little to do the airways being appropriate or not, however has every part to do with JetBlue taking out a competitor permitting it to hike fares. The route networks of Spirit Airways and JetBlue are considerably related. From Fort Lauderdale, Miami and Orlando, there are connections with South America and the Caribbean whereas passengers might be fed into the airports in Florida from varied cities from Boston and New York, and there even are some direct flights to the Caribbean. JetBlue however operates to South America and the Caribbean from Boston, New York and Fort Lauderdale.

By taking up Spirit Airways, JetBlue is strengthening its place alongside the East Coast and extra notably in Florida on the routes to South America and the Caribbean, that are excessive yield routes for JetBlue. So, JetBlue is just making an attempt to strengthen its pricing energy available in the market. JetBlue is now providing $30 per share as an alternative of $33 per share. For traders not curious about what occurs to Spirit Airways and are simply on the lookout for probably the most worthwhile manner out, the JetBlue supply sounds superior. Nevertheless, given the challenges JetBlue already faces now with crew shortages and investigation into their North East Alliance one can ponder whether a takeover will probably be authorized and whether or not a mix will create a greater airline for traders and shoppers.

Alaska Airways, a greater match?

Alaska Airlines Boeing 737 MAX 9 airplane

Alaska Airways Boeing 737 MAX 9 (The Boeing Firm)

JetBlue just isn’t giving up on Spirit Airways and the tone to amass the airline has turn out to be hostile towards its board. I even have doubts about JetBlue being on the successful finish of this. That itself just isn’t a nasty factor as a result of there’s one thing like driving up the worth simply to let the competitors pay extra. That doesn’t appear to be the case now, however I’m positive JetBlue additionally is aware of that gaining regulatory approval will probably be tough and is hoping for Frontier Airways (ULCC) to make a counter supply paying greater than it supposed to do.

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The large query is: If JetBlue can’t mix with Spirit Airways, which airline is an effective match? At this second, no airline has expressed any intention to mix with JetBlue however years in the past JetBlue and Alaska Airways have been engaged within the acquisition of Virgin America. At stake was the transcontinental power that Virgin America had.

Whereas there presently aren’t any plans for Alaska Airways and JetBlue to workforce up, and that is all speculative, I can see why Alaska Airways and JetBlue would finally be a very good match if consolidation within the airline trade is ready to proceed. JetBlue is taken into account a low-cost service whereas Alaska Airways generally is listed as a low-cost service and in some circumstances just isn’t. The very fact is that 2019 income per accessible seat-mile confirmed an 8.4% greater income for Alaska Airways however a have a look at seat maps gives the look that Alaska Airways doesn’t have the extra comfy product. In my opinion, Alaska Airways is a low-cost service similar to JetBlue.

Indirectly, an Alaska Airways-Jet Blue mixture may very well be an enchancment in passenger expertise. For example, JetBlue affords the Mint enterprise class product with full flat mattress seats whereas Alaska Airways doesn’t. Unifying the model towards the higher journey expertise may deliver flat mattress seats to Alaska Airways. By way of plane sorts, there is a distinction. Alaska Airways has just lately opted for a fleet simplification specializing in the Boeing 737 MAX and Embraer 175 whereas JetBlue will shift its focus to Airbus A320neo household plane and the Airbus A220.

So, a mixed airline could be working 4 plane households but it surely must be famous that the Embraer 175 doesn’t function within the mainline. A low-cost service that operates plane from varied producers just isn’t extraordinarily widespread however I may see a mix of Airbus A220/A320neo household plane and Boeing 737 MAX work.

JetBlue and Alaska Airlines routes

JetBlue and Alaska Airways routes (FlightConnections/The Aerospace Discussion board)

By way of the community issues could be fascinating. Whereas a Spirit-JetBlue mixture would largely be overlapping and thereby get rid of competitors, an Alaska-JetBlue mixture could be complementary. JetBlue is targeting the East Coast whereas Alaska Airways is targeting the West Coast with main home transcontinental connectivity from Seattle, Portland, San Francisco and Los Angeles.

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I imagine {that a} JetBlue-Alaska mixture would face much less regulatory scrutiny than a JetBlue-Spirit mixture. Nevertheless, a JetBlue-Alaska mixture does nothing to guard yields in JetBlue’s routes to South America and the Caribbean.

Is it doable?

The large query after all is… will it occur? I imagine {that a} mixture does make sense, however the financials look very totally different. Alaska Airways has a market cap of $5.9 billion whereas JetBlue has a market cap of $3.3 billion, so JetBlue is the smaller fish on this case. JetBlue was providing $3.6 billion for Spirit Airways, so any transfer on acquisition would virtually definitely must be Alaska Airways buying JetBlue. At a 20% premium, which is what Frontier affords for Spirit Airways, the worth tag for JetBlue could be round $4 billion or $12.35 per share. Nevertheless, if we apply the premium on the share worth earlier than JetBlue shares tanked we’d get to $17.40 per share or between $5.5 billion and $5.6 billion.

Conclusion

I foresee main challenges for JetBlue to amass Spirit Airways. The board of Spirit Airways has a robust desire for combining with Frontier Airways and JetBlue has turned hostile on the takeover and is providing $30 as an alternative of $33 per share now. With the overlap within the routes, I don’t fairly see how JetBlue wouldn’t be going through challenges getting a takeover authorized, and even when there will probably be an approval, I foresee a years-long technique of overhauling cabins to offer clients with a unified cabin product. Moreover that, JetBlue ought to doubtless be specializing in getting its personal operations so as as an alternative of trying to purchase one other airline.

If JetBlue doesn’t handle to take over Spirit Airways I may see it taking place that the airline will additional innovate its merchandise providing in the identical manner it did when it misplaced the bidding warfare for Virgin America. On the identical time, I additionally imagine that Alaska Airways may doubtlessly be a very good companion for JetBlue. There presently is nothing that factors in the direction of talks or plans for these airways to merge, however with a complementary community with sturdy transcon home connectivity I do see alternatives for a JetBlue-Alaska Airways mixture.



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Alaska

How Alaska highlighted a record-breaking Pan Am cyclist’s journey through the Americas

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How Alaska highlighted a record-breaking Pan Am cyclist’s journey through the Americas


While Bond Almand can’t pinpoint exactly when he found out about the Pan Am cycling challenge and the record time it’s been completed in, it was something he’s dreamed about for the past decade.

“It’s always been the pinnacle of sport for me,” he said. “A lot of people think the Tour de France is the pinnacle of cycling, but I’ve always been attracted to the longer riding and this was one of the longest routes in the world you could do, so that’s what really attracted me to it.”

The Dartmouth College junior, who grew up near Great Smoky Mountains National Park in Tennessee, set out on Aug. 31, 2024, and completed the challenge Nov. 15. Almand set a record time with more than nine days to spare. The Pan Am route goes from the most northern point in North America to the most southern point in South America and can be traversed either way.

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His desire to attempt to make history brought him all the way to the shores of Prudhoe Bay in Alaska to embark on his long-awaited journey.

“It starts in Alaska, which is somewhere I’ve always wanted to go,” Almand said. “I’d never been to Alaska before and Latin America was an allure to me too because I know a little bit of Spanish, but not that much, so that exploration aspect was an allure as well.”

His stay in the 49th state wound up being longer than he had originally planned, by an additional three days.

“When TSA searched my bike box when I was flying up, they took everything out and failed to put everything back in, so I was missing a piece to my bike when I got to Prudhoe Bay and was stuck there for a couple of days waiting for the new part to come in,” Almand said.

With plenty of time on his hands, Almand walked around town, which mostly consisted of a gravel road, and hitchhiked back and forth to meet people.

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“There’s only like, one place to eat in town, at the Aurora Hotel, so I spent a lot of time there eating at the buffet but I spent a lot of time staring at the tundra,” Almand said.

When his bike part finally arrived and he set out on his adventure, the first leg was his most memorable.

“Alaska was incredible, probably one of my favorite sections for sure,” Almand said. “It was pretty good weather. I went through Brooks Range first, which was just so beautiful. It was fall, so it was turning colors and the aspen were all bright yellow.”

He rode through a little bit of snow in the Brooks Range, enjoyed seeing wildlife and was stunned riding through the Alaska Range and gazing upon Denali.

It only took him around 4 1/2 days to bike through the state, and even though he’s seen mountains of similar and even greater magnitude, having been to the Himalayas in his previous travels, he particularly appreciated his experience in Alaska.

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“Being able to bike through the mountains instead of just flying to Nepal and seeing mountains made it really special,” Almand said. “The further south I got in Alaska got super remote, especially closer to Tok, and that was pretty incredible.”

He said that the most fun part of his journey was Alaska because that was when he was his freshest and he got to take in beautiful scenery and was fortunate enough to get good weather.

“But also Colombia was super exciting,” Almand said. “Like Alaska, there’s some really incredible mountains in Colombia and also beautiful culture and incredible food.”

The best meal he had during his travels was the tamales he ate while biking through pineapple fields in Mexico.

“It was in the middle of nowhere and there was a lady selling pineapple chicken tamales,” Almand said. “She was picking them right out of the field and cooking it right in front of me. Those tamales were so good.”

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Almand’s 75-day ride was significantly faster than the previous record of 84 days, which was held by Michael Strasser. While Almand’s mark appears to be accepted in the bikepacking world, he didn’t have it certified with Guinness. He said that was partly due to cost and partly due to their standard for certification.

“They have a lot of stipulations around the record,” he said. “They have their own measurement, one of which is you have to have witnessing signatures every single day and you have to have live tracking and all these other rules.”

As far as the most challenging portion of his journey, it came while he was traveling through Canada. He had to brave cold rain and strong headwinds, which continued when he got to the Lower 48 and through South America.

“When you’re cycling, headwind is one of the worst things you can have because it slows you down a lot,” Almand said. “From Peru until the finish, I had headwinds pretty much every single day.”

Setting smaller goals for himself along the way helped him push through, including testing both his mind and body. But the biggest motivator was the ultimate goal of achieving his dream, which was more within reach the more he persevered.

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“I’ve been dreaming the entire trip for so long that quitting was never an option,” Almand said. “Quitting would’ve been the hardest thing for me to do because I wouldn’t have been able to go home and live with myself having just walked away from it.”





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Cunard’s Alaska 2026 Voyages feature Queen Elizabeth sailing roundtrip itineraries from Seattle

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Cunard’s Alaska 2026 Voyages feature Queen Elizabeth sailing roundtrip itineraries from Seattle


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2026 season also features eight Panama Canal voyages, ranging in length from 20 to 42 days

VALENCIA, Calif., Jan. 8, 2025 /PRNewswire/ — Luxury cruise line Cunard has unveiled its highly anticipated Alaska 2026 program, offering travelers the chance to embark on an unforgettable adventure through one of the world’s most awe-inspiring destinations.

Between May and September 2026, Queen Elizabeth will sail 15 roundtrip voyages from Seattle, ranging from seven to 12 nights. Guests looking for a longer vacation that combines contrasting destinations can enjoy extended voyages of up to 42 nights, taking in the majestic landscapes of Alaska, the tropical beauty of the Caribbean, and the iconic Panama Canal.

An additional highlight to Cunard’s 2026 season is eight voyages through the famed Panama Canal, unlocking enticing destinations and experiences. A coveted voyage experience, these sailings bring guests close tropical jungles as the ship glides through 50 miles of locks and waterways between the mighty Atlantic and Pacific oceans. With so much to enjoy onboard and ashore, guests can admire the famed engineering marvel, unwind in the spa, or experience a variety of onshore adventures.

Cunard’s 2026 program on Queen Elizabeth features visits to 31 unique destinations across 16 countries, including highlights such as Colón, Panama, and Bridgetown, Barbados. Voyages are available to book from 5 a.m. PT on January 8, 2025, and guests can claim up to $800 onboard credit per stateroom* for bookings made between January 8 and March 26, 2025.

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This Onboard Credit allows guests to indulge in Cunard’s signature luxury, whether that means unwinding with a spa treatment, savoring fine dining, or enjoying exceptional shore experiences. Highlights include the opportunity to witness humpback whales in their natural habitat as Queen Elizabeth sails through Alaska’s glacier-filled fjords.

Alaska highlights

Queen Elizabeth’s voyages invite travelers to immerse themselves in a world of tidewater glaciers and mirror-like waters, where each day in port offers guests the freedom to step ashore and explore somewhere new.

Whether it be Ketchikan, with its vibrant totem poles, Juneau, where famous gold mines put this historic city on the map, or Haines, a prime destination for kayaking, Alaska is an adventurer’s paradise.

And not forgetting the beautiful UNESCO World Heritage Site of Glacier Bay National Park and Hubbard Glacier, two gems in the Alaskan crown.

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Prices for a 10-night Seattle roundtrip to Alaska (Q620) in July 2026 currently start from $2069 per person based on two sharing a Britannia Balcony stateroom.

Katie McAlister, President of Cunard, said: “Alaska is a truly unique destination, and we’re delighted to return with our 2026 program. Sailing through its spectacular fjords and seeing the immense glaciers is an experience like no other. On board, guests can sip regionally inspired cocktails, enjoy cuisine influenced by local flavors, and hear fascinating stories from renowned explorers. These voyages promise to create unforgettable memories, and we can’t wait to welcome our guests on board Queen Elizabeth.”

For more information about Cunard or to book a voyage, contact your Travel Advisor, call Cunard at 1-800-728-6273, or visit www.cunard.com.

For Travel Advisors interested in further information, please contact your Business Development Manager, visit OneSourceCruises.com, or call Cunard at 1-800-528-6273.

Notes to Editors
*Up to $800 Onboard Credit per stateroom ($400 per person) is based on reserving a Queens Grill Suite on voyages for 10 to 20 nights. Guests reserving a Britannia stateroom receive up to $400 per stateroom Onboard Credit. Onboard credit amounts vary by voyage length and category booked. Visit Cunard.com for full terms and conditions.

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About Cunard
Cunard is a luxury British cruise line, renowned for creating unforgettable experiences around the world. Cunard has been a leading operator of passenger ships since 1840, and this year celebrates an incredible 185 years of operation. 2025 is a momentous year in Cunard’s history, which will be marked with several iconic land-based events and special Event Voyages. The Cunard experience is built on fine dining, hand-selected entertainment, and outstanding White Star service. From a partnership with a two-Michelin starred chef, to inspiring guest speakers, to world class theatre productions, every detail has been meticulously crafted to make the experience unforgettable. A pioneer in transatlantic journeys and round world voyages, destinations sailed to also include Europe, the Caribbean, Alaska, the Far East and Australia.

There are currently four Cunard ships, Queen Mary 2, Queen Elizabeth, Queen Victoria and new ship, Queen Anne, which entered service in May 2024. This investment is part of the company’s ambitious plans for the future of Cunard globally, with the brand now boasting four ships in simultaneous service for the first time since 1999. Cunard is based at Carnival House in Southampton and has been owned since 1998 by Carnival Corporation & plc. www.cunard.com (NYSE/LSE: CCL; NYSE:CUK).

Social Media
Facebook: www.facebook.com/cunard
Twitter: www.twitter.com/cunardline
YouTube: www.youtube.com/wearecunard
Instagram: www.instagram.com/cunardline

For additional information about Cunard, contact:
Jackie Chase, Cunard, [email protected]
Cindy Adams, [email protected]

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Alaska sues Biden administration over oil and gas leases in Arctic refuge

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Alaska sues Biden administration over oil and gas leases in Arctic refuge


U.S. President Joe Biden delivers remarks from the Rose Garden of the White House in Washington, U.S., November 26, 2024. 

Nathan Howard | Reuters

The U.S. state of Alaska has sued the Biden administration for what it calls violations of a Congressional directive to allow oil and gas development in a portion of the federal Arctic National Wildlife Refuge.

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Monday’s lawsuit in the U.S. District Court in Alaska challenges the federal government’s December 2024 decision to offer oil and gas drilling leases in an area known as the coastal plain with restrictions.

The lawsuit said curbs on surface use and occupancy make it “impossible or impracticable to develop” 400,000 acres (162,000 hectares) of land the U.S. Interior Department plans to auction this month to oil and gas drillers.

The limits would severely limit future oil exploration and drilling in the refuge, it added.

“Interior’s continued and irrational opposition under the Biden administration to responsible energy development in the Arctic continues America on a path of energy dependence instead of utilizing the vast resources we have available,” Republican Governor Mike Dunleavy said in a statement.

Alaska wants the court to set aside the December decision and prohibit the department from issuing leases at the auction.

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The department did not immediately respond to a request for comment. A spokesperson for the Bureau of Land Management declined to comment.

When combined with the department’s cancellation of leases granted during the waning days of Donald Trump’s presidency, Alaska says it will receive just a fraction of the $1.1 billion the Congressional Budget Office estimated it would get in direct lease-related revenues from energy development in the area.

The lawsuit is Alaska’s latest legal response to the Biden administration’s efforts to protect the 19.6-million-acre (8-million-hectare) ANWR for species such as polar bears and caribou.

An October 2023 lawsuit by the Alaska Industrial Development and Export Authority contested the administration’s decision to cancel the seven leases it held. Another state lawsuit in July 2024 sought to recover revenue lost as a result.

Drilling in the ANWR, the largest national wildlife refuge, was off-limits for decades and the subject of fierce political fights between environmentalists and Alaska’s political leaders, who have long supported development in the coastal plain.

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In 2017, Alaska lawmakers secured that opportunity through a provision in a Trump-backed tax cut bill passed by Congress. In the final days of Trump’s administration, it issued nine 10-year leases for drilling in ANWR.

Under Biden, two lease winners withdrew from their holdings in 2022. In September, the interior department canceled the seven issued to the state industrial development body.



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