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Frontier IPO and being a listed stock: Good or bad for customers?

Frontier IPO and being a listed stock: Good or bad for customers?

Old Apr 6, 21, 12:16 am
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Frontier IPO and being a listed stock: Good or bad for customers?

I'm sure it's good for executive compensation and they'll try to use it to motivate employees just like ValuJet did (back in the days when people thought company stock could make them rich as just a regular employee...ENRON was a wake-up call there).

From a CUSTOMER perspective, though, I lean toward it being a bad thing. Wall Street tends to pressure toward short-term profits and a no-stone-unturned mentality with fees-for-everything, which we're seeing an awful lot of with Spirit. You can also expect constant comparisons among analysts in profitability between the ULCCs, even though there are myriad ways to make a quarter look good (like deferring a refleeting) where you trade the long term for the short term.

A notable difference between Frontier and Spirit is that the former has an elite program that takes the worst edges off the ULCC experience for the most-frequent flyers, while the latter resists forgoing any fee revenue from anyone and doesn't value loyalty much at all. The Wall Street types have ruined businesses before (remember Yahoo Auctions?) by pressuring changes that management should have resisted but didn't. They're also notorious for rewarding short-term thinking and punishing longer-term moves.

Fortunately there's a model in the industry in Southwest that's so far resisted constant pressure from Wall Street to impose baggage and other fees and be more like the legacy carriers. It's because they're NOT like that that a lot of people, especially families on vacation, will fly them. But it takes a strong management to stand against the pressure, and frankly those doing the pressure might not know or care much about the company or industry.

What say u? Good thing or beginning of the end?
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Old Apr 6, 21, 7:52 am
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I would point out that AIrtran was a good profitable airline with low fares and reasonable perks for frequent flyers. It was ultimately bought by Southwest for reasons I could never quite figure out.
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Old Apr 6, 21, 9:31 am
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Doubtful it matters to a customer. Unlikely to affect pricing or services.

But, it does give F9 access to the capital markets for growth and that is a customer advantage for sure.
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Old Apr 12, 21, 3:38 pm
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Will bring some discipline to management, but ultimately I don't see it affecting passengers much. I am wondering if they will shift their focus somewhat away from Denver as that would personally affect me, but I could see it making sense for them to get out of this uber competitive market.

With the beginning of the glory days of leisure travel coming the timing makes sense, but surely in the next 5 or so years there will come a reckoning where the investment world holds their feet to the fire for not appealing to business travelers. At all. I have status on Southwest, United and Frontier and its so night and day at the front of the lines for each how many elites the other two have. Most Frontier flights I'm boarding with maybe 2 or 3 others.
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Old Apr 13, 21, 1:20 pm
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Originally Posted by willy702 View Post
With the beginning of the glory days of leisure travel coming the timing makes sense, but surely in the next 5 or so years there will come a reckoning where the investment world holds their feet to the fire for not appealing to business travelers. At all. I have status on Southwest, United and Frontier and its so night and day at the front of the lines for each how many elites the other two have. Most Frontier flights I'm boarding with maybe 2 or 3 others.
I had status on Frontier but their constant route roulette caused them to no longer serve the places I wanted to go. I would still happily fly them when appropriate. Having more access to
capital may help them grow but it also may be Indigo wanting to cash out, like they did with Spirit before they bought Frontier.
The only way they get more access to capital, except for the direct issue of new stock, is by borrowing money
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