Southwest buying another airline? Carrier downgraded on M&A speculation
Southwest Airlines was downgraded from "buy" to "hold" by an investment bank based on speculation that it might look to solve its 737 Max issue through an acquisition. Southwest has hundreds of 737 Max planes--grounded since March-- on order through Boeing. "An acquisition by Southwest motivated by a desire to diversify away from the Max creates significant risks in the near term for LUV," Stifel analysts said in a Monday research note speculating whether Alaska Air Group and JetBlue Airways could be M&A targets. Southwest recently extended Max-related cancellations until Feb 2020, meaning the carrier will be hampered by the grounding well into Q1 2020. Southwest is famous for its all-737 fleet. But if the Max grounding persists, the carrier might be forced to buy another airline. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-10-22/unaligned/southwest-buying-another-airline-carrier-downgraded-on-m-a-speculation
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Southwest buying another airline? Carrier downgraded on M&A speculation
Southwest Airlines was downgraded from "buy" to "hold" by an investment bank based on speculation that it might look to solve its 737 Max issue through an acquisition. Southwest has hundreds of 737 Max planes--grounded since March-- on order through Boeing. "An acquisition by Southwest motivated by a desire to diversify away from the Max creates significant risks in the near term for LUV," Stifel analysts said in a Monday research note speculating whether Alaska Air Group and JetBlue Airways could be M&A targets. Southwest recently extended Max-related cancellations until Feb 2020, meaning the carrier will be hampered by the grounding well into Q1 2020. Southwest is famous for its all-737 fleet. But if the Max grounding persists, the carrier might be forced to buy another airline. <br/>
