Southwest may make a bid for Frontier
07-30-2009, 06:29 PM
#101
New Hire
Joined APC: Jul 2009
Posts: 6
" Morris Air guys were were pay protected when they were hired, so when they were hired at the bottom of the SWA seniority list, they made (at a minimum) the same pay rates that they made at Morris. "
Not quite true. The Morris captains were pay protected, the FO's were not. For some of the high time flyers on the FO side it was a substantial short-term paycut.
All of the Morris Guys were offered a job at SWA. A few chose not to go. A few were fired off probation and the majority are still there. There were 2 who had previously been fired at SWA who got lucky.
Not quite true. The Morris captains were pay protected, the FO's were not. For some of the high time flyers on the FO side it was a substantial short-term paycut.
All of the Morris Guys were offered a job at SWA. A few chose not to go. A few were fired off probation and the majority are still there. There were 2 who had previously been fired at SWA who got lucky.
07-30-2009, 07:20 PM
#103
Gets Weekends Off
Joined APC: Dec 2005
Position: Left Seat
Posts: 1,105
I wouldn't be afraid that this was in Bedfords back pocket when he put the offer up to buy F9. He either puts a nice airline in his pocket on the cheap or he gets his money back. $100 million and change.
07-30-2009, 07:41 PM
#104
Gets Weekends Off
Joined APC: Jun 2006
Position: FO
Posts: 179
Originally Posted by STILL GROUNDED
I wouldn't be afraid that this was in Bedfords back pocket when he put the offer up to buy F9. He either puts a nice airline in his pocket on the cheap or he gets his money back. $100 million and change.
07-30-2009, 08:09 PM
#105
Gets Weekends Off
Joined APC: Feb 2007
Position: E-170
Posts: 842
Originally Posted by CHQ Pilot
Can you explain where people are coming up with a 100+ million to RAH? Not trying to be sarcastic; I'm just not understanding where the figures are coming from. There is the 40 million from the loan (which was essentially a refinance of previous debt) that gave RAH DIP rights which is secured. The BK judge awards that money out first and to any other secured creditors, of which there are many. RAH has a 150 million unsecured from claimed damages from the loss of the 170 contract. Since that is unsecured that is not a guarantee. I just don't see how RAH is guranteed 100+ million when they've only put 40 million in.
07-30-2009, 08:19 PM
#106
Where's my Mai Tai?
Joined APC: Aug 2006
Position: fins to the left, fins to the right
Posts: 1,723
Originally Posted by quimby
wrong......
07-30-2009, 08:22 PM
#107
Line Holder
Joined APC: Jan 2008
Posts: 40
Originally Posted by BoeingTanker
I don't believe that F9 has a say in this in the end. The Judge Drain makes the final call.
RAH's financial interest in F9 makes this an interesting situation. Not only are they a bidder, the are a creditor. And it is the creditors that the courts take care of in the end.
All sorts of twists and turns coming boys and girls, hang on, I don't think we have seen the last bid. Wonder what the final bids will be by Aug 10.
RAH's financial interest in F9 makes this an interesting situation. Not only are they a bidder, the are a creditor. And it is the creditors that the courts take care of in the end.
All sorts of twists and turns coming boys and girls, hang on, I don't think we have seen the last bid. Wonder what the final bids will be by Aug 10.
07-30-2009, 08:23 PM
#108
Gets Weekends Off
Joined APC: Jul 2009
Position: Downwind, headed straight for the rocks, shanghaied aboard the ship of fools.
Posts: 1,128
Say what you will, the Frontier pilots would have been better off if their pony was hitched to the RAH wagon. I've seen the word "Borg" tossed around on these boards to describe RAH. Give me a break, we're nothing compared to Southwest. If this bid is successful the Frontier pilots will be unemployed soon and another great airline will go the way of the dodo.
07-30-2009, 08:23 PM
#109
Gets Weekends Off
Joined APC: Dec 2008
Position: ERJ-170
Posts: 139
Originally Posted by Killer51883
the money is not a guarantee but even at getting a fraction of it your still going to come out with a fair chunk. i also think there is another 30 million-ish rah gave them as well
Dammit Jim, I'm a pilot not a banker!
07-30-2009, 08:32 PM
#110
Line Holder
Joined APC: Jul 2009
Posts: 43
look up Allegany Mohawk
Originally Posted by CHQ Pilot
Can you explain where people are coming up with a 100+ million to RAH? Not trying to be sarcastic; I'm just not understanding where the figures are coming from. There is the 40 million from the loan (which was essentially a refinance of previous debt) that gave RAH DIP rights which is secured. The BK judge awards that money out first and to any other secured creditors, of which there are many. RAH has a 150 million unsecured from claimed damages from the loss of the 170 contract. Since that is unsecured that is not a guarantee. I just don't see how RAH is guranteed 100+ million when they've only put 40 million in.
The unsecured creditors will get pennies on the dollar. The RAH plan of 108 million gave the unsecured creditors 10 cents on the dollar. So in theory the next bid by SWA should be higher. RAH will receive the $40 million Dip back plus interest and they will receive their 150 million at whatever rate the winner has planned. To reach 100 million the plan must be 40 cents on the dollar (and RAH must loose) which could happen if the bidding starts getting juicy especially if another bidder comes in but I doubt it.
Last edited by FreightK9; 07-30-2009 at 08:45 PM.
Thread
Thread Starter
Forum
Replies
Last Post
Lowtimer77
Regional
55
11-10-2008 06:10 PM
