Frontier
#1
Frontier
Anyone have info on how Frontier is coming along with their restructuring and is there and exit date for them to come out of Chap 11? Just sent my resume in to Lynx but I'm not sure how the mother ship is doing. Thanks and good luck to all.
#3
#4
Line Holder
Joined APC: Jul 2008
Position: Boeing 737 First Officer
Posts: 51
A couple of pilot friends from Frontier told me that Frontier reported loss of $33 million in April/May (thats without paying most of it's bills), cash is going fast & the markets are not willing to provide Frontier with additional financing & the furloughs announced are probably just the beginning.
I sure do hate to see it, but it looks like Chapter 7 unfortunately may be the only exit for Frontier.
Looks like this fuel crisis is going to eliminate a great pilot group and a good company overall. Times suck!
I sure do hate to see it, but it looks like Chapter 7 unfortunately may be the only exit for Frontier.
Looks like this fuel crisis is going to eliminate a great pilot group and a good company overall. Times suck!
#5
Gets Weekends Off
Joined APC: Jul 2007
Posts: 390
The problem with going BK nowadays is that no one wants to throw money into an airline when it's pretty obvious that the whole industry can't cope with fuel prices like they are now.
UAL could be in the same boat by the end of the year. Not much left to mortgage and little prospects for getting any kind of profit in the future. Not a whole lot of lenders who see that as a good risk.
The airline industry is in a high stakes game of "last man standing."
UAL could be in the same boat by the end of the year. Not much left to mortgage and little prospects for getting any kind of profit in the future. Not a whole lot of lenders who see that as a good risk.
The airline industry is in a high stakes game of "last man standing."
#6
New Hire
Joined APC: Jul 2008
Position: PIC
Posts: 8
Last man standing indeed
Seem like Frontier would be a good merger partner for someone smaller, like JBlue or AirTran, but I guess at this point it's just cheaper and easier to sit back and then buy the assets in a liquidation fire sale.
Seem like Frontier would be a good merger partner for someone smaller, like JBlue or AirTran, but I guess at this point it's just cheaper and easier to sit back and then buy the assets in a liquidation fire sale.
#7
Gets Weekends Off
Joined APC: Jan 2007
Posts: 118
I understand that after declaring Chapter 11, Frontier was given a 30 day moratorium on making their debt payments. As soon as that 30 day period was over, they began to make their payments again on schedule. So, if that is true, they have only enough cash to do this and to make their payroll and rents/leases which presumably were negotiated to lower amounts in Chapter 11.
#8
Gets Weekends Off
Joined APC: Jan 2007
Posts: 118
WheelsUp - You wrote
>>UAL could be in the same boat by the end of the year. Not much left to mortgage<<
I am told that United's umencumbered assets are greater than any of the other major carriers, except for American and Southwest. Have you heard differently?
None of the U.S.carriers have a bright prospect, but United's is bad mostly due to extremely poor (and greedy) management, in my opinion.
>>UAL could be in the same boat by the end of the year. Not much left to mortgage<<
I am told that United's umencumbered assets are greater than any of the other major carriers, except for American and Southwest. Have you heard differently?
None of the U.S.carriers have a bright prospect, but United's is bad mostly due to extremely poor (and greedy) management, in my opinion.
#9
WheelsUp - You wrote
>>UAL could be in the same boat by the end of the year. Not much left to mortgage<<
I am told that United's umencumbered assets are greater than any of the other major carriers, except for American and Southwest. Have you heard differently?
None of the U.S.carriers have a bright prospect, but United's is bad mostly due to extremely poor (and greedy) management, in my opinion.
>>UAL could be in the same boat by the end of the year. Not much left to mortgage<<
I am told that United's umencumbered assets are greater than any of the other major carriers, except for American and Southwest. Have you heard differently?
None of the U.S.carriers have a bright prospect, but United's is bad mostly due to extremely poor (and greedy) management, in my opinion.
This has nothing to do with management, product, or business strategy, only short-term liquid assets vs. short-term obligations. Again, it's simply about rapid bleeding out...nobody will have time to really re-engineer their business to adapt to the new price of oil.
Airways is probably weak on cash from the merger, AA because they didn't do CH.11 when it was all the rage.
Thread
Thread Starter
Forum
Replies
Last Post
HuronIP
Frontier
9
01-27-2008 08:11 AM