Judge approves purchase of Frontier
#11
I think the whole situation is a lot more complicated than all the figures being thrown around. The key points are that Frontier is in bankruptcy, a judge presides over any purchase, and creditors are the sole issue. A judge can throw out any Republic deal if a better one comes along that is more beneficial to creditors. With that said, RAH is a major creditor and will be compensated if another offer comes along, but it is not a black and white issue of RAH receives XXX amount of money if Frontier is sold to some one else. That is up the the bankruptcy court to decide.
#17
I have no idea what SWA has in the cards for Frontier, but I think I'm safe to say that RAH does not have the current Frontier going forward. The only thing BB knows is Embraer and a fee per departure structure. He is a highly intelligent man but he doesn't know anything about running a self sufficient airline. CHQ used to run their own ground ops and they were great at it, but BB found the cheaper solution was to outsource. That is what he did, even in the mecca of Indianapolis. Great employees were put on the street because he found a cheaper alternative. F9 is gone either way, yet the paths are greatly divergent. RAH probably has a shell type option with E190s and everything outsourced to another party while SWA has an operation where F9 slowly disolves into the larger company. There is no crystal ball, but the one lone party left out is Lynx. Lynx was part of the deal for SWA, but what becomes of them is yet to be known. SWAPA has even alluded that the pilots of Lynx may be brought in to the SWAPA seniority list to prevent a whipsaw (talk about a windfall), but if I was a betting man I would say that scenario wouldn't play out (but that doesn't mean anything the way I end up on bets). The end result is Frontier will never be the same, no matter which way it goes.
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