Republic WINS Frontier Bid
Aug 13, 2009, 6:26 pm
#2
FlyerTalk Evangelist
Join Date: Feb 2003
Location: Denver, CO, USA
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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!
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!
Aug 13, 2009, 6:41 pm
#3
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
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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?
Aug 13, 2009, 7:25 pm
#5
Join Date: Sep 2000
Location: Denver, Colorado
Programs: DEN: WN or UA, AA LT Gold, VIA Preference Preferred
Posts: 1,550
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?
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?
Aug 13, 2009, 8:51 pm
#6
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,422
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.
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.
Aug 13, 2009, 9:44 pm
#7
Join Date: May 2005
Programs: UA
Posts: 1,775
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.
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.
Aug 13, 2009, 11:17 pm
#8
Join Date: Sep 2008
Location: Denver, CO
Programs: UA Gold, WN Cargo, HHonors Diamond, Hyatt Globalist, Marriot Lifetime Platinum
Posts: 94
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!
Aug 14, 2009, 7:21 am
#12
Join Date: Nov 2007
Location: Downtown Denver
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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.
Aug 14, 2009, 7:31 am
#13
Join Date: Nov 2007
Location: Downtown Denver
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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?
Aug 14, 2009, 9:00 am
#14
Original Member and FlyerTalk Evangelist
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Location: Kansas City, MO, USA
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Aug 14, 2009, 9:03 am
#15
Join Date: Jan 2007
Location: Chicago
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