SAVE’s Parts Are Greater Than Its Sum
$Spirit Airlines(SAVE.US$ has $1.3 billion of cash on hand, a $69 million payout from $JetBlue Airways(JBLU.US$ , more total assets than liabilities, a 100+ orderbook of exclusively Airbus (no Boeing mess) that are now worth up to 30% more than their original contracts due to new plane shortages if they want to sell rather than take possession, a huge settlement payout coming from Pratt & Whitney over engine issues that will ground planes—at a time Spirit is cutting non-performing routes anyway to return to profitability.
Before $JetBlue Airways(JBLU.US$ made a hostile takeover bid, $Spirit Airlines(SAVE.US$ had offers from Frontier, Allegiant, and Sun Country.
Regardless, with SAVE’s current market cap of only $468.57 million, someone outside the airline business (think Arkhouse and Brigade with Macy’s) could buy the float, take the $1.369 billion, liquidate SAVE’s assets to cover the liabilities, make off with over $900 million, and tell the DOJ to go F themselves for killing Spirit 🍻
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