RAH to aquire Frontier
 

Just read this and am wondering what exactly it means.

Frontier Airlines lines up bankruptcy exit plan - Yahoo! Finance

Republic to buy Frontier
 

Republic Airways to Serve as Equity Sponsor for Frontier’s Exit from Bankruptcy




Republic Airways Holdings (NASDAQ/NM: RJET) announced today that it has agreed to be the equity sponsor of Frontier Airlines’ plan of reorganization. The plan, which is subject to bankruptcy court approval and various conditions, would allow Republic to purchase 100% of the equity in the reorganized company for $108.75 million.

If approved and completed, the plan will result in Frontier’s successful exit from Chapter 11, at which point it would become a wholly owned subsidiary of Republic Airways, alongside the other Republic operating companies: Chautauqua Airlines, Republic Airlines and Shuttle America.

“Thanks to the hard work of its employees, Frontier has made tremendous strides during its restructuring process, recently posting its sixth straight monthly operating profit despite challenging economic conditions,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “Adding Frontier to the Republic portfolio of operating companies is an opportunity for both companies to build on recent successes and strengthen the Republic organization for the benefit of all stakeholders.”


Frontier’s proposed plan of reorganization was filed today with the U.S.

Bankruptcy Court for the Southern District of New York. Frontier has also filed a motion to approve the investment agreement with Republic, which is subject to higher and better proposals under a court-supervised auction. A hearing at which Frontier will seek court approval of the investment agreement and proposed auction procedures has been scheduled for July 13, 2009. Frontier currently expects to conclude the auction process and emerge from Chapter 11 during the fall of 2009.

The proposed plan of reorganization provides for general unsecured creditors to receive $28.75 million in cash. An additional $40 million of the sale proceeds would be applied as repayment of the outstanding DIP loan.

Frontier Airlines Holdings, Inc. is the parent company of Denver-based Frontier Airlines. Currently in its 15th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing approximately 5,000 aviation professionals. Frontier Airlines' mainline operation has 51 aircraft with one of the youngest Airbus fleets in North America. Frontier Airlines' mainline operations offer 24 channels of DIRECTV® service in every seatback along with a comfortable all-coach configuration. In conjunction with a fleet of ten Bombardier Q400 aircraft operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.), Frontier offers routes to more than 50 destinations in the U.S., Mexico and Costa Rica. In November 2006, Frontier and AirTran announced a first-of-its-kind integrated marketing partnership that offers travelers the ability to reach more than 80 destinations across four countries with low fares aboard two of the youngest fleets in the industry. For more in-depth information on Frontier Airlines, please visit its Web site at FrontierAirlines.com : http://www.pr-inside.com/images/icons/link.gif .

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 101 cities in 37 states, Canada and Mexico through airline services agreements with seven U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect, Mokulele Airlines and US Airways Express. The airlines currently employ approximately 4,500 aviation professionals and operate 212 regional jets.

In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risk factors disclosed in the Company’s most recent filing with the Securities and Exchange Commission.


Republic Airways HoldingsCarlo Bertolini, 317-484-6069

Last I heard RAH is buying Compass. I guess RAH is buying everyone these days...

Wow - the student becomes the master.

It seems that RAH would buy Frontier, and run the airline as a subsidiary.

I certainly hope this doesn't adversely affect the Frontier guys (QOL, pay, etc.) Bedford is a penny pincher after all.

What does this mean for Shuttle America and Delta?

What does it mean for Frontier and Lynx??

SkyWest better hurry up and snatch up AirTran, United, and Virgin.

We just received a letter from our union basically stating that Republic is demanding "unlimited scope relief" and many other changes to our current CBA....

"Republic has indicated that they plan to operate Frontier as a separate fenced off company and not merge seniority lists."

Thats is because they will throw out our current rates and happily put a RAH FO on a $36/ hr rate on the Airbus.

Frontier is such a great company and it makes me sick to have any affiliation to Republic Holdings. Not to speak out of anger, but I would rather not have a job then become the new low in Airbus pay/QOL/ect....

It looks like the airlines are paying to much for feed these days if they have the cash for this.

RAH=cancer of the industry

Unreal, now we can expect to see these RAH guys flying A-320's for $5 more an hour than the 170's........................

Sad Sad Sad, I hope FRONTIER guys shut that place down, is it really worth it anymore?

I don't know what Bedford is thinking throwing this cash around like this. He must think when times turn around he'll be buying his way into becoming one of the largest airlines in the nation. On the other hand, its one thing to operate a feed airline with guaranteed profit and another to actually compete.

I feel bad for you F9 guys who are now going to be just another arm of Republic. If that scope gets thrown out its going to be a massive whipsaw.

The RAH Borg roll on. Prepare to be assimilated.

Whipsaw?
 

How would it even work? Will RAH still be able to keep their lift contracts in place with Delta?

Unreal, He can spend all this money, yet he cant pay 190 guys more than 50 seat pay, what a disgrace............

Unbelievable Republic is probably going to combine midwest and frontier into one eventually and all of a sudden they will be flying airbus's and 190's

I'm pretty certain that all RAH pilots must be on the same seniority list and not just run as a subsidiary company.

He can... but why would he when the pilots agree to work for such low wages.

Joey,

That's WHY he can spend money for acquisitions. If he doesn't have to pay pilots squat, he makes more profit.

Yeah you can bet all of his major partners will be upset that they're financing their future competitor. I know when XJT started branded Continental wasn't too happy and put the pressure on for the new CPA.

I suppose Republic is betting their contracts will get thrashed through bankruptcies of the majors in the fall and is preparing the lifeboats by making their own business opportunities now.

Yes, that is correct; there WILL, at some point, be a seniority list integration.

Exactly what I was thinking.

Bedford isn't as stupid as some might think.

The "other" side that I am hearing is that MKE will be the new Frontier base, as the Frontier brand will remain in tact. I could go in circles with this, it is best for me to go grab a beer and start reciting the "remember when" stories...

exactly. that and look for another job.

I dont think anyone is calling him dumb, just a sneaky low-life who in the end will whave RAH pilots flying Airbus for $110/hr CA pay

This will get interesting. I bet the keyboard warriors get this thread shut down in 20 pages

Which partners will go BK? UAL & YX?

Good Luck Frontier Guys. BB & his train of destruction roll on. :(

i bet CAL, UAL, DAL, and USAIR wont be very happy that they're supplementing cheaper ticket prices at a direct competitor.

It is a lot harder than I thought to not take this personal and look at RAH with a cold shoulder. Any other regional I wouldn't be so bummed, it would be ignorant to think anything positive will come out of this, the history of RAH doesn't lie.....back to the beer

well put. (opening another beer)

Wow soon to be one big happy Republic family.

Do not cave on scope relief, the RAH pilots will simply complain about "big bad management forcing them to fly A318's for $37/hr, but we're in negotiations".

I for one vote for a seniority integration of 100% staple of RAH pilots to F9 list, too bad it's illegal now.

Perhaps, but they'll be more interested in figuring how they can just as skillfully undermine employees careers to improve their bottom line. Bedford is probably their hero right now. They will be taking notes!

Onfinal

Then it's time to change history.

I mean really................... burn the place down (legally),

Dang, thats a good one...very inspirational!

Oh, how nice a staple to the bottom would be, I know its illegal, but lets ride on the quote and "change history!"

beer 4

or you could just roll over and complain like most pilots and say "wow is me". The game is changed and RAH is in negotiations so it's time to force managements hand and get you guys a worth while contract.

I'm sure it would be so much better if expressjet or eagle bought you guys. riiight :rolleyes:

The puzzle pieces so far.

http://www.republicairways.com/image...tions/map1.pdf

Route Map - Frontier Airlines

Free market really sucks when it frees us from QOL and better paying jobs! Whose idea was that to deregulate this industry!?

As far as stapling the RAH list under Frontier... remember TWA... things can get ugly... hope he keeps the F9 guys separate to protect their QOL and salaries... but I bet we can expect 190's with animals on their tails next year... and one of them will be Sesame Street's "cookie monster"...

Why are they moving my cheese!!!????!!!???

Hmmm
 

In all honesty, even though I work for Republic, I must admit that this makes me a little sad. Bigger jets and not bigger paychecks.......:(