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Originally Posted by ToiletDuck
(Post 438472)
Good thing you don't work here then because you're completely missing the boat on why BB is doing this. BB isn't buying stock in the company. He's loaning them money. If they pay then great we'll see benefits out of it. If they can't pay then guess who gets first call on the assets at rock bottom prices? Last time this happened with US airways BB got 170s and their gates which he now leases back to them and makes a nice chunk of change off. He's stated several times he has interest in assets at other companies. We'll just have to see which way he decides to play it. Frontier is still a great company that has potential. SWA isn't bullet proof and is a little worried itself on where it's money is going to come from. There's a reason they don't go into ATL.
Your right i don't work at republic and am happy where i am but i merely mentioned that if i did work for republic i would not be very comfortable with my company being a financial backer to F9. No one said Republic was becoming a shareholder and i am pretty sure everyone understands what this means. Last time BB did this was with USAirways which had a lot better brand recognition, market share, and better outlook. F9 is in a very difficult position with lots of competition, does not own its aircraft, and has a list of new creditors lining up. If BB is expecting to get assets during a liquidation he will be receiving pennies on the dollar for what might be worthless assets down the road. Past performance is no indicator of future success when it comes to investments. Don't kid yourselves into thinking everything he touches is gold... money can be lost. This is money that could be keeping your job secure down the road if this roll of the dice doesn't pan out. good luck |
Originally Posted by Bond
(Post 438578)
Well considering that most if not all of Frontier's aircraft are leased, I'm failing to see how RAH would benefit from this transaction. The gates might be of some value as SWA is planning on doubling their presence here, but I have to agree with the previous poster...I don't see the long term value of the transaction, poor guys at F9 are as good as gone...all the best to them.
You can't expect to understand everything about the business deal before it's released to public. There are a lot of ways this could go. What's a Q400 regional go for these days? |
Originally Posted by Bond
(Post 438578)
I don't see the long term value of the transaction, poor guys at F9 are as good as gone...all the best to them.
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Let me say it again. With credit card money flowing in, and the cash coming in from the financing F9 is going to be in better shape than most of the airlines. Most of their other financial ratios are very solid. Don't put a tombstone on them. They could be here long after XJet, Mesa, and few others that whose stock is selling at a similar point and would not have the near the recovery potential if they went into BK. Those poor guys at F9 are likely going to be flying long after some of those who have counted them out.
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Originally Posted by AirbornPegasus
(Post 438601)
Very few things in the world of aviation are nearly certain, but BB making money is one of them. He does not get into a deal unless it is a nearly sure bet. BB lost on Frontier, but this is going to make it all right. No one could see Frontier's Credit Card issue coming and that is what forced them into Bankruptcy. They have fixed that, will have more days of cash on hand than most airlines, be able to dump their worst routes, agreements, and leases (through BK). BB still has 12 170's sitting in PIT. If Frontier does not take them and they go under, BB picks up the gates and offers them (and of course the 170's) to another code share at a great price. Take it to the bank and draw interest on it. Our beloved Reverend will come out on top of this deal no matter how it shakes out.
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Just a correction, Frontier still owns a good portion of their aircraft and more importantly, they have a very good assets to liabilities ratio (which I can't remember right now, sorry), which is also something many airlines can't say right now.
All they have is a fighting chance, but they definitely shouldn't be counted out yet! |
Originally Posted by flyboyzz1
(Post 438844)
And which carriers are looking to pick up feed right now or in the near future?
Looking only at the near future catches you with your pants down. Have to plan for the long haul. I think this is a great move on RAH's part. |
Lets not forget that RAH needs some place to hide those profits before those darn pilots start thinking they can justify a pay raise in the new contract.
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also not to forget that rah is in on this deal with two other companies, not just themselves.
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Originally Posted by AirbornPegasus
(Post 438601)
Very few things in the world of aviation are nearly certain, but BB making money is one of them. He does not get into a deal unless it is a nearly sure bet. BB lost on Frontier, but this is going to make it all right. No one could see Frontier's Credit Card issue coming and that is what forced them into Bankruptcy. They have fixed that, will have more days of cash on hand than most airlines, be able to dump their worst routes, agreements, and leases (through BK). BB still has 12 170's sitting in PIT. If Frontier does not take them and they go under, BB picks up the gates and offers them (and of course the 170's) to another code share at a great price. Take it to the bank and draw interest on it. Our beloved Reverend will come out on top of this deal no matter how it shakes out.
Kind of like the CRJ deal with CAL, huh?:rolleyes: |
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