56 replies to this topic

[Dont call me Shirley]

http://online.wsj.co...=googlenews_wsj

Republic Airways Holdings Inc. on Tuesday announced plans to dispose of its loss-making Frontier Airlines business, sparking a rally in the stock of what some analysts had once viewed as the industry's next candidate for bankruptcy protection.

[BoeingBoy]

Not to belittle you - that was in the headlines today - but Republic started talking about this 2-3 months ago and it's actually contractual. In the last "realignment" agreement with the pilots (and possibly other groups) Republic is required to become a minority holder of Frontier by 2014.

Jim

[USA320Pilot]

Republic Surges Most Since 2009 With Frontier Airlines Set for Separation

Steps under study in a second round of restructuring at Frontier include selling flight slots at DCA that Bedford said today were valued at $80 million, and 10 E190s.

Click here to read the story.

[SparrowHawk]

Selling assets is NEVER a positive sign.

Does anyone know if the 319/320's at Frontier are powered similarly to US?

Still think Dougie should dust off his rolodex and get the money lined up to buy Frontier out of BK because IMO that's where they are headed and IMO it will be sooner rather then later.

[necigrad]

SparrowHawk, on 08 November 2011 - 11:13 PM, said:

Does anyone know if the 319/320's at Frontier are powered similarly to US?

East used CFM engines and West IAE. There's only two powerplants, so yes ;-).

[PullUp]

SparrowHawk, on 08 November 2011 - 11:13 PM, said:

Selling assets is NEVER a positive sign.

Does anyone know if the 319/320's at Frontier are powered similarly to US?

Still think Dougie should dust off his rolodex and get the money lined up to buy Frontier out of BK because IMO that's where they are headed and IMO it will be sooner rather then later.

It would not be smart to buy a DEN hub. It would not be smart to buy old airbus aircraft.
It would be smart to buy DCA slots and perhaps 190's for a cheap price.
Cheers

[BoeingBoy]

SparrowHawk, on 08 November 2011 - 11:13 PM, said:

Selling assets is NEVER a positive sign.

While you're right, right now RAH is only studying selling DCA slots and 10 E-190's. All they've definitely done is return 2 E-190's to the leasor while taking delivery of 2 from Embraer, and deferred delivery on 4 more - keeping the E190 fleet basically constant. They've also signed agreements with Airbus for 80 A320neo's but I haven't seen a breakdown of firm orders, orders subject to confirmation, or options. It seems only natural, if RAH is going to completely spin off F9, to not get a bunch more E-190's when he might not have a place to fly them a few years from now.

Despite Bedford's spin that Frontier has been put on sound footing and it being time to let it go, I do think he discovered that F9 was too much to swallow. Running a "real" airline where you have all the risk is far different from running a RJ fee for departure operation where almost all the decisions and risk belong to the contracting partner. I remain convinced that that was Siegel's downfall - he came to US from running Eagle where he mostly did what AA said since AA paid the bills and took the risks. He just wasn't prepared for actually having to run an airline with all the decisions and risk that that entails. So he did what he knew - get/contract a bunch of RJ's for US.

Jim

[Dont call me Shirley]

BoeingBoy, on 08 November 2011 - 11:51 PM, said:

...Running a "real" airline where you have all the risk is far different from running a RJ fee for departure operation where almost all the decisions and risk belong to the contracting partner. I remain convinced that that was Siegel's downfall - he came to US from running Eagle where he mostly did what AA said since AA paid the bills and took the risks. He just wasn't prepared for actually having to run an airline with all the decisions and risk that that entails. So he did what he knew - get/contract a bunch of RJ's for US.

Jim

Great post, Jim!! There is a world of difference indeed.