Franke sees U.S. budget airline consolidation
01-20-2015, 02:22 PM
#23
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Joined APC: Jan 2010
Position: Airbus
Posts: 630
Originally Posted by gringo
Delta showed their hand.
Screen grab from the Delta 95 non-incident out of ATL the other day clearly shows what Momma D has in mind for us...
Screen grab from the Delta 95 non-incident out of ATL the other day clearly shows what Momma D has in mind for us...
01-20-2015, 03:12 PM
#24
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Joined APC: Dec 2012
Position: Airline Enthusiast
Posts: 134
I'd like to say I know more than I've posted, but my friend is no longer with F9. He was aware of the outsourcing before his departure and from what he could gather a move to CLE could be in the works. I'm on my own now to try and figure it all out.
01-22-2015, 07:53 AM
#26
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Joined APC: Jan 2010
Position: Airbus
Posts: 630
The Delta Spirit thing was a joke. Personally I think it was funny. Two completely different markets and clients. It would be like Wallmart and Macy's merging. Not going to happen.
Frontier and Spirit is interesting. People make too much out of the fact that we operate different engines. Not a problem because pilots, A&P's and dispatch can all be trained in the differences. A slight increase in cost because of extra spare parts is it. American and USAirways operate Airbus aircraft with two different engines and it hasn't been an issue.
Frontier and Spirit is interesting. People make too much out of the fact that we operate different engines. Not a problem because pilots, A&P's and dispatch can all be trained in the differences. A slight increase in cost because of extra spare parts is it. American and USAirways operate Airbus aircraft with two different engines and it hasn't been an issue.
01-22-2015, 08:34 AM
#28
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Joined APC: Dec 2009
Position: Airplane
Posts: 2,385
Originally Posted by Grumpyaviator
He doesn't SEE a merger as much as he NEEDS a merger. The Frontier deal has not turned out like he thought and he needs an out.
This!
Frontier offers nothing to Spirit other than a brand name and a somewhat loyal customer base. Frontier is pulling back from being Denver-centric, they fly most of the same routes and haven't fully developed their ULCC model. They do have Airbus order slots, but so does Spirit, they have an experienced pilot group where most have been there for quite awhile, but the expense of bringing in ready made Captains is much higher than bringing in new hires and promoting from within.
I'm sure Frontier (Indigo) would love a merger or to be bought by someone, but I see no reason for Spirit to do it.
I think it's more likely a regional-centric airline like JetBlue or Alaska buy Frontier rather than Spirit. And neither have shown any interest or notable acquisition of airlines. Mr. Franke is just trying to drum up interest.
01-22-2015, 08:50 AM
#29
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Joined APC: Mar 2014
Posts: 46
Originally Posted by Grumpyaviator
He doesn't SEE a merger as much as he NEEDS a merger. The Frontier deal has not turned out like he thought and he needs an out.
I don't feel the need to defend Frontier's position- it is what it is, and everyone's free to speculate on what will happen.
I REALLY don't feel the need to defend Franke. He's a big boy, got his own motivations.
But after 12 mos, what do you see that leads to your observation? I'd be particularly interested in your vantage point and qualifications?
I'm not a restructuring expert, but it seems like a year isn't very long....
01-22-2015, 08:59 AM
#30
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Posts: 46
Originally Posted by Lobaeux
^^^^^^^^
This!
Frontier offers nothing to Spirit other than a brand name and a somewhat loyal customer base. Frontier is pulling back from being Denver-centric, they fly most of the same routes and haven't fully developed their ULCC model. They do have Airbus order slots, but so does Spirit, they have an experienced pilot group where most have been there for quite awhile, but the expense of bringing in ready made Captains is much higher than bringing in new hires and promoting from within.
I'm sure Frontier (Indigo) would love a merger or to be bought by someone, but I see no reason for Spirit to do it.
I think it's more likely a regional-centric airline like JetBlue or Alaska buy Frontier rather than Spirit. And neither have shown any interest or notable acquisition of airlines. Mr. Franke is just trying to drum up interest.
This!
Frontier offers nothing to Spirit other than a brand name and a somewhat loyal customer base. Frontier is pulling back from being Denver-centric, they fly most of the same routes and haven't fully developed their ULCC model. They do have Airbus order slots, but so does Spirit, they have an experienced pilot group where most have been there for quite awhile, but the expense of bringing in ready made Captains is much higher than bringing in new hires and promoting from within.
I'm sure Frontier (Indigo) would love a merger or to be bought by someone, but I see no reason for Spirit to do it.
I think it's more likely a regional-centric airline like JetBlue or Alaska buy Frontier rather than Spirit. And neither have shown any interest or notable acquisition of airlines. Mr. Franke is just trying to drum up interest.
I can see this point of view if you're sitting at Spirit.
Only part I'm not sure I agree with is Franke's need to merge.
He made a killing on your IPO, and he's setting himself up again. Frontier is in an arguably better position than Spirit was prior to restructuring, and he's got the blueprint. You may argue Frontier has competition in you that didn't exist when you were getting your act together, but it's a big market out there. ULCCs make up 20+% of the euro market, <5% in the US.
The endgame will be interesting...
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