Jet Blue Airways Inc. is planning for a more secure future for its workers by
instituting a severance plan — just in case — a bidder attempts a hostile
takeover, Newsday reported Friday. The safety net for JetBlue workers,
however, is also designed to make it more difficult for a competitor to
acquire the discount airline. Industry analysts speculate that the new policy
maybe a harbinger that bids are just beyond the horizon for JetBlue. The
Deal's senior writer Lou Whiteman in early May
pointed
out that Frontier Airlines Corp. or perhaps Richard Branson's Virgin
America may be potential bidders whose system complement JetBlue's operations.
Delta Air Lines reportedly is also a heavy contender. Whoever the potential
bidder may be, they'll be inheriting an airline that until recently was the
darling of the industry. But rising fuel costs and takeoff snafus related to
weather conditions in the winter contributed to JetBlue's losses and a
nosediving stock price. —Gerald Magpily
See
story from Newsday
See
May 10 Dealscape entry
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