Originally Posted by
MatthewAMEL
Sold for $109M?
Isn't that $.18 on the $? Frontier is done.
The cost of the Airbuses on the market is $.52/$ And no labor issues to deal with.
I believe you are implying that Frontier was purchased by Indigo and Indigo intends on liquidated the assets.
First, the purchase price that Indigo paid was much lower than $109MM.
Second, the "$.18 on the $" reference implies that Frontier is somehow worth approximately a little over $500MM. Frontier has no market value today.
Third, the "cost of the Airbuses on the market is $.52/$" reference is illogical. Do you know how much Frontier paid for each individual airbus. Do you know how many airbuses Frontier owns vs leases?
Frontier harvested any remaining aircraft equity back in 2008-2009. Our CFO actually called the aircraft equity an "untapped piggy bank". Yes, he was a total idiot.
There is no resale value of Frontier today. Indigo is not in the aircraft sales business. Indigo would not have spent almost a year in negotiations with RAH and Barclays and Airbus NA and labor and other investors if all they wanted to do was host a fire sale.