Helix Investment Research
Long only, special situations, contrarian, growth

Spirit Airlines: A Solid Derivative Play On The US Airways-American Airlines Deal

On November 12, the Department of Justice, US Airways (LCC), and American Airlines (in conjunction with several state attorneys general) announced that they have reached a settlement in relation to the merger of US Airways and American Airlines, clearing the way for the two airlines to merge. Investors greeted the news positively, as this helps ensure that capacity growth across the industry has been subdued. For many investors, the logical choice has been to buy shares of the legacy carriers, with the belief that continued industry consolidation will allow them to continue healing their balance sheets and moving towards sustainable annual profitability in the mold of Southwest (NYSE:LUV). However, one airline has outperformed all others in

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