JetBlue CEO David Barger says that not only have they not received a non-disclosure agreement from American Airlines nor any contact regarding a merger, JetBlue does not want to merge with American Airlines.

Under any circumstances.  Barger says that JetBlue sees its future as a successful independent and not bringing any value to the table in a merger with an airline such as American.

I agree.  Purchase of JetBlue is an asset purchase, primarily, where American Airlines would suddenly be free to try to operate JetBlue routes with a cost structure exceptionally higher than JetBlue’s.  Even after a successful, stand-alone bankruptcy exit, AA is unlikely to be able to operate at the same cost level of JetBlue or even close to it.  So how does it win with JetBlue routes?

I like JetBlue still but I do think the airline has stagnated considerably since the departure of David Neeleman.  In fact, I think that JetBlue has missed opportunities just preceeding and after American Airlines’ bankruptcy filing.  Opportunities that I think Neeleman would have gambled on and won.  That said, the airline is profitable, successful and operating in its niche acceptably.  Barger isn’t wrong about not adding value to an airline such as AA.

Filed under: Airline News by ajax