Republic Questions
12-04-2013 | 08:20 AM
#1061
Gets Weekends Off
Joined: Jul 2007
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“Under the terms of the stock purchase agreement, which has been approved by the Company’s board of directors, the buyer will acquire all of the outstanding shares of Frontier in a transaction valued at approximately $145 million, of which $36 million (subject to certain adjustments under the purchase agreement) is to be paid in cash for the equity of Frontier and the balance is indebtedness that will be retained by Frontier. As part of the transaction, under a separate agreement, the Company will assign to Frontier all of the Company’s rights under agreements relating to the Company’s Airbus A320neo order for additional cash consideration.”
12-04-2013 | 08:25 AM
#1062
Gets Weekends Off
Joined: Jul 2007
Posts: 143
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The Morality of the American Airlines Chapter 11 Reorganization
12-04-2013 | 08:35 AM
#1063
Underpaid...
Joined: Nov 2010
Posts: 2,101
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From: French-Canadian
Nope,try again:
“Under the terms of the stock purchase agreement, which has been approved by the Company’s board of directors, the buyer will acquire all of the outstanding shares of Frontier in a transaction valued at approximately $145 million, of which $36 million (subject to certain adjustments under the purchase agreement) is to be paid in cash for the equity of Frontier and the balance is indebtedness that will be retained by Frontier. As part of the transaction, under a separate agreement, the Company will assign to Frontier all of the Company’s rights under agreements relating to the Company’s Airbus A320neo order for additional cash consideration.”
“Under the terms of the stock purchase agreement, which has been approved by the Company’s board of directors, the buyer will acquire all of the outstanding shares of Frontier in a transaction valued at approximately $145 million, of which $36 million (subject to certain adjustments under the purchase agreement) is to be paid in cash for the equity of Frontier and the balance is indebtedness that will be retained by Frontier. As part of the transaction, under a separate agreement, the Company will assign to Frontier all of the Company’s rights under agreements relating to the Company’s Airbus A320neo order for additional cash consideration.”
12-04-2013 | 11:24 AM
#1064
Line Holder
Joined: Sep 2006
Posts: 928
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It doesn't take very long for a person who's been around the block a time or two to realize a disorganized, dysfunctional mess after only a few days. I certainly did, but in my case, it had been a while since RJET had done any new hire training of note and I mistakenly let them off the hook for that reason, not realizing that ever aspect of life/work at RJET would be the same.
I know of very few people who work at RJET that would say that it's not a poorly-run company. Perhaps instead of implying that this person was a "problem child," one should be congratulating his remarkable perceptivness.
...and yes, he clearly did himself a favor.
12-04-2013 | 11:39 AM
#1065
Line Holder
Joined: Sep 2006
Posts: 928
Likes: 2
I believe that was two years ago.
RJET, without the ability to pass Frontier's losses and operating costs on to the FFD side via, among many other things, pro-rate contracts with itself, will be at least a $25-35 million dollar a quarter winner, even with an industry-leading pilot contract.
I think that this is why the company is suddenly so hot to lock the pilots into a new CBA....they don't want us to see the books of a Frontier-free quarter.
An RJET bankruptcy should be the last thing on anyone's "worry list."
Now, don't mistake my rebuff of the bankruptcy notion as an endorsement of RJET for employment. It is not a good place to work.
12-04-2013 | 12:03 PM
#1066
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Joined: May 2013
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Why, so he can saddle himself with a two-year training agreement?
It doesn't take very long for a person who's been around the block a time or two to realize a disorganized, dysfunctional mess after only a few days. I certainly did, but in my case, it had been a while since RJET had done any new hire training of note and I mistakenly let them off the hook for that reason, not realizing that ever aspect of life/work at RJET would be the same.
I know of very few people who work at RJET that would say that it's not a poorly-run company. Perhaps instead of implying that this person was a "problem child," one should be congratulating his remarkable perceptivness.
...and yes, he clearly did himself a favor.
It doesn't take very long for a person who's been around the block a time or two to realize a disorganized, dysfunctional mess after only a few days. I certainly did, but in my case, it had been a while since RJET had done any new hire training of note and I mistakenly let them off the hook for that reason, not realizing that ever aspect of life/work at RJET would be the same.
I know of very few people who work at RJET that would say that it's not a poorly-run company. Perhaps instead of implying that this person was a "problem child," one should be congratulating his remarkable perceptivness.
...and yes, he clearly did himself a favor.
12-04-2013 | 12:33 PM
#1067
Gets Weekends Off
Joined: Mar 2011
Posts: 116
Likes: 0
From: Underemployed!
Nope,try again:
“Under the terms of the stock purchase agreement, which has been approved by the Company’s board of directors, the buyer will acquire all of the outstanding shares of Frontier in a transaction valued at approximately $145 million, of which $36 million (subject to certain adjustments under the purchase agreement) is to be paid in cash for the equity of Frontier and the balance is indebtedness that will be retained by Frontier. As part of the transaction, under a separate agreement, the Company will assign to Frontier all of the Company’s rights under agreements relating to the Company’s Airbus A320neo order for additional cash consideration.”
“Under the terms of the stock purchase agreement, which has been approved by the Company’s board of directors, the buyer will acquire all of the outstanding shares of Frontier in a transaction valued at approximately $145 million, of which $36 million (subject to certain adjustments under the purchase agreement) is to be paid in cash for the equity of Frontier and the balance is indebtedness that will be retained by Frontier. As part of the transaction, under a separate agreement, the Company will assign to Frontier all of the Company’s rights under agreements relating to the Company’s Airbus A320neo order for additional cash consideration.”
I'm not sure what to think. Articles like this one from April mention $1 billion in debt and lease obligations, but the recent sale articles make no mention of such a large amount. So is the bulk if that debt the lease obligations, or is RAH assuming additional debt and hoping no one notices? Like I said, I have no idea, but the numbers just don't seem to add up from what was reported in April vs. today.
Indianapolis-based Republic bought Frontier out of bankruptcy in 2009 for $109 million, plus the assumption of $1 billion in debt and aircraft lease obligations.
A prospective buyer might pay up to $50 million for Frontier, then invest up to an additional $150 million to recapitalize the airline. It would also take on the carrier's debt, placing the total value of the deal at roughly $1 billion, according to Dow Jones.
A prospective buyer might pay up to $50 million for Frontier, then invest up to an additional $150 million to recapitalize the airline. It would also take on the carrier's debt, placing the total value of the deal at roughly $1 billion, according to Dow Jones.
12-04-2013 | 01:30 PM
#1068
Gets Weekends Off
Joined: Aug 2006
Posts: 511
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I'm not sure what to think. Articles like this one from April mention $1 billion in debt and lease obligations, but the recent sale articles make no mention of such a large amount. So is the bulk if that debt the lease obligations, or is RAH assuming additional debt and hoping no one notices? Like I said, I have no idea, but the numbers just don't seem to add up from what was reported in April vs. today.
12-04-2013 | 01:48 PM
#1069
Underpaid...
Joined: Nov 2010
Posts: 2,101
Likes: 0
From: French-Canadian
Two investment firms interested in Frontier Airlines - The Denver Post
I'm not sure what to think. Articles like this one from April mention $1 billion in debt and lease obligations, but the recent sale articles make no mention of such a large amount. So is the bulk if that debt the lease obligations, or is RAH assuming additional debt and hoping no one notices? Like I said, I have no idea, but the numbers just don't seem to add up from what was reported in April vs. today.
Either way, it baffles me how many bad decision after bad decision Bedford is allowed to make, and the RJET BOD continues to retain him as CEO. I'd be furious if I were an investor.
I'm not sure what to think. Articles like this one from April mention $1 billion in debt and lease obligations, but the recent sale articles make no mention of such a large amount. So is the bulk if that debt the lease obligations, or is RAH assuming additional debt and hoping no one notices? Like I said, I have no idea, but the numbers just don't seem to add up from what was reported in April vs. today.
Either way, it baffles me how many bad decision after bad decision Bedford is allowed to make, and the RJET BOD continues to retain him as CEO. I'd be furious if I were an investor.
12-04-2013 | 02:27 PM
#1070
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Joined: Dec 2007
Posts: 790
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Republic Questions
the billions of debt are from emb 170 and 145 financing. most of the 145s and all of the 170/5 fleet are owned. they are financed through purchase financing and the debt is secured by the airplanes as collaterals. froentier doesnt have this, therefore no purchase fianancing.
most likely indigo will use the same method as spirit and will utilise operating lease financing, instead of purchase lease financing.
in the case of rah aircraft, they can always go abck to the banks and reduce the amount of debt and align them with current values of aircraft. the same way they did with 145s last year.
most likely indigo will use the same method as spirit and will utilise operating lease financing, instead of purchase lease financing.
in the case of rah aircraft, they can always go abck to the banks and reduce the amount of debt and align them with current values of aircraft. the same way they did with 145s last year.
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