Could Southwest Buy JetBlue To Solve Growth Limit Imposed By Boeing 737 MAX Grounding?
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January 22, 2020 - by Michael Goldstein for forbes.com
Southwest Airlines is profitable but has a growth problem created by the continued grounding of its 34 Boeing 737 MAX aircraft (of 301 on order). Could Southwest get out of the box by buying JetBlue—in particular, that airline's order book of Airbus A321neo aircraft?
If Southwest is sick of waiting for the 737 MAX to be declared safe to fly, why not just order some planes from Boeing' competitor? Unfortunately, Airbus has a backlog of 3200 aircraft to deliver.
If Southwest buys JetBlue, it will also get its place in line for A321neo deliveries.
Such is the modest proposal put forth by Stifel airline analyst Joe DeNardi.
In a recent update, he called JBLU a buy, claiming "As Boeing's Stock Goes Down, JetBlue's Should Be Going Up." He put a target price on JBLU stock, currently around $19.15 a share, at $26.
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