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Southwest may make a bid for Frontier

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Southwest may make a bid for Frontier

Old 07-30-2009, 10:41 AM
  #31  
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Originally Posted by Ralphie View Post
Although our plans may vary as we work our way through this process, we wanted to share with you our present plan as we envision it. Frontier would continue to operate independently and separately for a period of time with its Airbus aircraft and personnel. We do not intend to integrate the Airbus into our Boeing 737 fleet. As we are able to retire Airbus aircraft, we will add Boeing 737 aircraft. Over time, Frontier Employees would be hired into Southwest as needed to support our fleet growth and expanded operations. There are many details to be worked through, but we are confident that the effort will be worthwhile. We are also confident that our bid, if successful, will boost low-fare competition and benefit consumers in Denver and other cities our expanded network will serve.
This sounds like southwest may offer preferential hiring to frontier guys as they lose their jobs. Based on that, they don't intend to integrate the pilot lists. As the Airbus goes away, those affect pilots can then likely interview and be hired to the bottom of the southwest list. Hopefully there will be language in the buyout stating that southwest HAS to hire them, and not just interview. This is the end of F9 if southwest wins. We'll see how good or bad it is for the current employees.
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Old 07-30-2009, 10:46 AM
  #32  
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Originally Posted by ToiletDuck View Post
If this goes through RAH is going to get a very fat check in the mail. Yet again BB will prove his abilities to earn a buck.
I wouldn't be counting the money just yet. RAH is not guranteed anything beyond their own investment except what the bankruptcy court decides. This is a bankruptcy auction, not RAH selling Frontier. The court's obligation is to the investors (of which RAH is a claimant); not the employees of Frontier, not the city of Denver, or RAH.

RAH is an unsecured creditor for 150 mil (was previously 260 mil) as a condition of the 40 mil loaned in March. They filed a damage claim for breaking the contract, but they are not owed any money other than what they have put in (the DIP is secured).
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Old 07-30-2009, 10:56 AM
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Originally Posted by Oldfreightdawg View Post
Or way better than TWA treated Ozark, or NWA treated Republic, or Delta treated Western, or North Central treated Huges Air West, or...
Let's hope the SWA pilots break the traditional airline pilot mode of "doing onto others and splitting".

Considering Frontiers situation though, even transfer to SWA at the bottom is proabably a good deal. I would think at the very LEAST, the Frontier pilots would get more then just an interview, but guaranteed employment as postions arise (and theirs dwindle).

Hey, if SWA can't snag them, many at Eagle would be thrilled to leave AMR. Most here can only imagine a utopia of not having the APA open the upper basement door once a day and throwing down a metal plate of maggot covered rice and beans and bucket to poop in. A class company (though not without small issues) like SWA would be a breath of fresh air over here and I envy the Frontier pilots for having that interest and option. Maybe in a year or so, new dynamics will make us sellable and we can finally cut our shackles and see the sunlight.
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Old 07-30-2009, 10:57 AM
  #34  
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I know I'd much rather have SWA sign my paycheck than some sleazy CEO from a place like Republic. If the Frontier guys survive the takeover they would at least earn a decent wage for their work not sure about the kind of dough Republic would pay but I have a real good idea.
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Old 07-30-2009, 11:02 AM
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Originally Posted by cgtpilot View Post
I know I'd much rather have SWA sign my paycheck than some sleazy CEO from a place like Republic. If the Frontier guys survive the takeover they would at least earn a decent wage for their work not sure about the kind of dough Republic would pay but I have a real good idea.
The real loser will be UAL. The last thing they need is to run out of Denver like a loudly whimpering Chihuahua with their tail between their legs...........I suppose they could roll over and play dead, but either way Animal control is on the prowl.
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Old 07-30-2009, 11:02 AM
  #36  
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Originally Posted by Waldo11 View Post
I got two dogs in this fight and I have no clue how this will play out.....
I'm hoping its better. I'd rather see Frontier absorbed by SWA than operated by RAH anyday. Only question I have is about Lynx...I'm guessing SWA would sell Lynx off. Skywest perhpas??? Who knows.
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Old 07-30-2009, 11:05 AM
  #37  
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Originally Posted by CHQ Pilot View Post
I wouldn't be counting the money just yet. RAH is not guranteed anything beyond their own investment except what the bankruptcy court decides. This is a bankruptcy auction, not RAH selling Frontier. The court's obligation is to the investors (of which RAH is a claimant); not the employees of Frontier, not the city of Denver, or RAH.

RAH is an unsecured creditor for 150 mil (was previously 260 mil) as a condition of the 40 mil loaned in March. They filed a damage claim for breaking the contract, but they are not owed any money other than what they have put in (the DIP is secured).
From what I understand the $150mil has already been agreed to and is part of the bid pkg that RAH made for F9. Any other bid will have to include that amount. I could be wrong as I'm a little fuzzy on the details but to my understanding if someone outbids RAH BB still gets a nice check.
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Old 07-30-2009, 11:09 AM
  #38  
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From what I can see Republic can buy Frontier for 108 million but anyone else would have to top the 108 million plus somewhere in the neighborhood of 200 million. SWA would smarter to let Republic buy it and low ball them. It would be cheaper to do it that way.
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Old 07-30-2009, 11:09 AM
  #39  
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Originally Posted by eaglefly View Post
The real loser will be UAL. The last thing they need is to run out of Denver like a loudly whimpering Chihuahua with their tail between their legs...........I suppose they could roll over and play dead, but either way Animal control is on the prowl.
Lol F9 could paint a United plane on the tail of an airplane...

I think animals againts the canyon blue would look pretty good
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Old 07-30-2009, 11:10 AM
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I actually think this is good for UAL.

Denver essentially has 3 hubs and is over served. If WN can eliminate a competitor and consolidate some routes, the yields in DEN will go up, which is good for both WN and UA. Hopefully the F9 guys get to get on at WN.
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