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Old Aug 13, 09, 5:58 pm   #1
 
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Republic WINS Frontier Bid

Just announced by Southwest, Republic Airways chosen as the winning bidder for Frontier.
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Old Aug 13, 09, 6:26 pm   #2
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More here:

http://www.streetinsider.com/Press+R...n/4875455.html

Congratulations F9 employees - I think this is a far better outcome for you.

And what do you know, I think the animal tails are here to stay!
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Old Aug 13, 09, 6:41 pm   #3
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Originally Posted by DenverBrian View Post
Congratulations F9 employees - I think this is a far better outcome for you.
I'm happy for the animals, but doesn't Republic now have the ability to sell any assets it wants to Southwest and just lay off the employees? Couldn't Republic sell the high-value assets for $300M or more and just shut down the airline, pocketing a quick profit of $100M or more? Or is there a legal impediment?
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Old Aug 13, 09, 6:56 pm   #4
 
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Hopefully this will strengthen F9--its brand and its employees' future. Good luck to Frontier and Republic. Hope things work out for the best
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Old Aug 13, 09, 7:25 pm   #5
 
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Originally Posted by nsx View Post
I'm happy for the animals, but doesn't Republic now have the ability to sell any assets it wants to Southwest and just lay off the employees? Couldn't Republic sell the high-value assets for $300M or more and just shut down the airline, pocketing a quick profit of $100M or more? Or is there a legal impediment?
Once the transaction is finalized, Republic will own Frontier, so Republic could sell anything to anybody they wanted.

But, Republic has stated they intend to operate Frontier as a stand alone operation. F9 employees feel they have a better future with this approach, rather than the alternative of being stapled to the bottom of the WN employee applications. Who can really say what will happen?
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Old Aug 13, 09, 8:51 pm   #6
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This is an unbelievable upset victory for Republic -- achievable only through the dysfunctional nature of pilot unions (which, of course, only exist through a quirk in the law that allows these professionals to unionize). This was a slam dunk winner for Southwest's shareholders AND employees, and it fell through their grasp because they essentially put it to a vote of their pilots. As we've seen time and again, pilots are incapable of rationally deciding seniority issues. There are countless examples, but Exhibit A is the infighting at US Airways between the old America West pilots and the old US Airways pilots, and now this is firmly "Exhibit B."

It's also a slam dunk win for Frontier's customers, who get to keep their above-average airline -- and more competition in DEN. Whether it's a win for Frontier employees is a harder question. I guess that's an individual question as to whether you'd have a job with a Southwest merger, and the unknowable prospects of Republic now running the business.

I feel sorry for everyone at Southwest, but when David beats Goliath, you have to smile.
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Old Aug 13, 09, 9:44 pm   #7
 
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I for one am happy that Republic won. WN would have just gutted F9 and eliminated a competitor. This way fares will stay low and I actually do like assigned seats and in seat TV.
More competition to WN is a good thing, also it does keep them honest.
Whether F9 will stay around will depend how Republic handles the company. I don't see any synergies yet between them and F9.
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Old Aug 13, 09, 11:17 pm   #8
 
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Wonder if Republic will improve the worthless Early Returns program? I'd sure like to be able to use miles to go somewhere other than Fargo on a Wednesday night!
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Old Aug 13, 09, 11:46 pm   #9
 
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What will Republic do differently to make F9 a profitable airline?
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Old Aug 14, 09, 12:26 am   #10
 
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Originally Posted by mcgahat View Post
What will Republic do differently to make F9 a profitable airline?
Do what it did to Midwest and cut routes/cities/jobs.
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Old Aug 14, 09, 5:42 am   #11
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Originally Posted by mcgahat View Post
What will Republic do differently to make F9 a profitable airline?
Supposedly F9 is profitable right now.
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Old Aug 14, 09, 7:21 am   #12
 
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Originally Posted by airshane View Post
Wonder if Republic will improve the worthless Early Returns program? I'd sure like to be able to use miles to go somewhere other than Fargo on a Wednesday night!
Amen, Early returns has become "No returns". I am an F9 Summitt but prefer WN. At least my companion pass and Rapid rewards "Returns" vs. a seat to El Paso on Thursday! (oh they just cut El Paso in Sept.) OK, Fargo or Billings? F9 has shown profitablity due to planes being sold, wage concessions, and route cutbacks. If Republic makes changes it will be with management not early returns. republic has no track record running anything but Regional airline.
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Old Aug 14, 09, 7:31 am   #13
 
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Quote:
Originally Posted by nsx View Post
I'm happy for the animals, but doesn't Republic now have the ability to sell any assets it wants to Southwest and just lay off the employees? Couldn't Republic sell the high-value assets for $300M or more and just shut down the airline, pocketing a quick profit of $100M or more? Or is there a legal impediment?
NSX is on to something, Republic has to be thinking exactly what is stated in the post. Remember that Republic got screwed by F9 when it took BK, they had a $150 mil claim in BK against F9 for breach of contract for regional air craft. What keeps Republic from gutting F9, goodwill towards the freaking animals? This saga isn't over, stay tuned...............
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Old Aug 14, 09, 9:00 am   #14
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Originally Posted by jaylenofan86 View Post
Do what it did to Midwest and cut routes/cities/jobs.
Republic does not own Midwest yet, Midwest was gutted under the supervision of their own management and subsequentlyTexas Pacific Group.
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Old Aug 14, 09, 9:03 am   #15
 
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Republic does not own Midwest yet, Midwest was gutted under the supervision of their own management and subsequentlyTexas Pacific Group.
Republic does own Midwest. The sale was finalized several weeks ago.
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