Frontier Hiring.
#6542
#6545
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Joined: Aug 2007
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#6548
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Joined: Aug 2014
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From: Airbus FO
I believe this management team has no intention to grow the airline as planned. They care about ONE thing, and that is; what can they do to make a dollar RIGHT NOW.
Biffle and Indigo don't give 2 *******s about this airline in 5 years.
Our CASM is somewhere under 6 cents. God forbid we keep a 5 year old A320 and our CASM goes from 5.7 to 5.8 cents. They're so effin' blinded by short term gain by replacing a CEO with a NEO that they are missing growth opportunities Allegiant and Spirit are moving in on, very rapidly.
I was optimistic about Frontier's future, but with every passing day, that optimism wanes.
Biffle and Indigo don't give 2 *******s about this airline in 5 years.
Our CASM is somewhere under 6 cents. God forbid we keep a 5 year old A320 and our CASM goes from 5.7 to 5.8 cents. They're so effin' blinded by short term gain by replacing a CEO with a NEO that they are missing growth opportunities Allegiant and Spirit are moving in on, very rapidly.
I was optimistic about Frontier's future, but with every passing day, that optimism wanes.
#6549
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Joined: Oct 2016
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I agree with most everything you said and it represents the traditional business model and investor that we are used to.
But private equity firms and their methods are a whole different ball game. I did some internet research on some of the new big PE players and their methods. Their goal is often huge short term profits while turning around a failing business, and not necessarily the long term health of the business.
They excel in stripping much of the business's value (and pocketing it themselves) while maintaining or increasing the value of the business for a future IPO or sale.
Growth is a long term investment in a company. It requires that money made today be reinvested in the company to increase its future value. Any money invested in future growth is money the PE firm can not put in its pocket now.
Indigo's motive is to put as much money in it's pockets as it can while maintaining or increasing Frontier's value for a future IPO or sale. Their goal or concern is not necessarily the long term health of Frontier or your future at an airline they won't be part of 5 years from now.
I hope that I am wrong and you are correct!
But private equity firms and their methods are a whole different ball game. I did some internet research on some of the new big PE players and their methods. Their goal is often huge short term profits while turning around a failing business, and not necessarily the long term health of the business.
They excel in stripping much of the business's value (and pocketing it themselves) while maintaining or increasing the value of the business for a future IPO or sale.
Growth is a long term investment in a company. It requires that money made today be reinvested in the company to increase its future value. Any money invested in future growth is money the PE firm can not put in its pocket now.
Indigo's motive is to put as much money in it's pockets as it can while maintaining or increasing Frontier's value for a future IPO or sale. Their goal or concern is not necessarily the long term health of Frontier or your future at an airline they won't be part of 5 years from now.
I hope that I am wrong and you are correct!
I am certainly not suggesting that they are indeed a benevolent organization but neither are most [I]for profit[I] organizations. They are likely quickly reinvesting profits to grow as quickly as possible. As another poster mentioned, growth - and more importantly revenue, are most certainly the greatest concern for Indigo. I will suggest that they are not remotely concerned about pocketing the net profits they are making today. Here is why: They paid $150,000,000 or so for Frontier out of bankruptcy. They know and believe in the ULCC model. If they simply pocketed the $120,000,000 in profit for the next three years they would stand to make $360,000,000 less the original $150,000,000 or $210,000,000. Nothing to sneeze at but the real money comes from creating a much larger and semi profitable airline. For example, in the IPO world of airlines, revenue (not profit) is the name of game. Grow, grow, grow. Valuations are regularly 2x to 3x revenue. So...if they can grow revenue to say $2 billion they stand to generate $4 to $6 billion for their investment of $150,000,000.
So long as they can, I submit that they will grow as fast as possible. Not a guarantee even with all the moons in alignment but where my money is.
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