Does JetBlue Need...or Even Want...a Deal?

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Aug. 27 (Bloomberg) -- Bloomberg’s Cristina Alesci and George Ferguson discuss the possibility of JetBlue being a takeover target. They speak on Bloomberg Television's “Taking Stock.” (Source: Bloomberg)

Why with this make sense?

Do they need this component?

Rex they have been trailing this index of major airlines for a couple of years.

It is the widest since 2006. being a cheap is not a reason to buy something.

You still buy it on sale.

It is not clear how it really does make sense.

Jetblue has the lower margin business.

The leisure traveler.

What is going to make a difference for some of these large airlines is going to be the business traveler.

That is where they're going to get a money.

That is an issue.

From a cost standpoint , there is a culture clash in terms of cost.

It cost jetblue $.11 per seat per mile to operate.

With american and the industry average, you are looking at $.13 to $.14. you follow this for a long time.

Does this make any sense?

Should we expect them to be taken out anytime soon?

I do not see the rationale for adding it to american or u.s. air.

As christina mentioned, jetblue going after a lot of leisure travel.

They are trying to find the business traveler more.

They have a base out of jfk.

They have a good base out of boston.

America has presence of there.

I do not know that this round of the network reticular be well.

I do not see a lot of the good rationale.

It would the really hard to get jetblue inside of this.

That love and sing -- that .11 cent seat will be hard to generate inside american.

You mentioned culture.

It is a very different culture.

Jetblue is a company hampered by what we have seen with a lot of the older ones.

They like that they do it differently.

You hit this huge.

From the top down to the bottom.

They really have a different approach.

It is not like they are really struggling.

The already have a ownership with american.

They need to decide what they want to be.

You want to go deep into the middle class.

We could see them go deeper.

Are people saying this is likely that we could see this happening?

Not necessarily.

You would expect that bankers will always talk up prospects for a deal.

It is kind of 50-50. what will be interesting is what happens to u.s. air.

For then the situation is much more leak if the merger does not go through.

They want to be on top.

They cannot do that alone.

If they do decide to go it alone, they would have to do a series of much smaller mergers.

They have not really worked it out historically.

What does happen to u.s. airways?

Let's assume some of this plays out.

I think you are right.

They have a problem.

They are not sitting on very good business hubs.

This text has been automatically generated. It may not be 100% accurate.

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