56 replies to this topic

[PullUp]

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

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

Siegel ran continental express.

[BoeingBoy]

You're right - thanks for correcting my error.

Jim

[dash8roa]

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

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

I think siegel took usairways through chapter 22,I mean chapter 11 twice.Then he left with 4.5 million,not bad for failing miserably!

[swamt]

Are you kidding me?? How much more can this company screw the employees?? Not only did Frontier move all the labor force and headquarters out of Denver, once they did relocate, they are "once again" laying off, yet again, more employees, after they (employees) moved in order to stay with the company. How F'd up is this? Now you see what a greedy company, Frontier, gets for going for the highest bidder, Republic, instead of the much more stable companies bid from Southwest. I really hope Southwest will step in and put a bid in to aquire Frontier and maybe stop the BS the employees are enduring. I believe the article below is only about half what the total layoffs will end up being. 120 of 230 of reported layoffs this year and early next year in MLK. Here's the article:
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Frontier to cut another 120 jobs in Milwaukee
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The Business Journal by Rich Rovito, Reporter
Date: Thursday, November 10, 2011, 4:29pm CST..

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Rich RovitoReporter - The Business JournalEmail | Twitter
Frontier Airlines .. plans to cut 120 positions in Milwaukee in early January, the airline revealed in a mass layoff noticed filed Thursday with the Wisconsin Department of Workforce Development.

Frontier, which is owned by Indianapolis-based Republic Airways Holdings Inc. .. (Nasdaq: RJET), stated in the notice that the cuts will be made between Jan. 6 and Jan. 13 and involve employees at General Mitchell International Airport in Milwaukee, as well as the airline’s maintenance facility, 555 W. Air Cargo Way.

The Department of Workforce Development and the Milwaukee HIRE Center will provide outplacement services for affected workers.

The planned cuts are the second major layoff announced by Frontier in recent months. Frontier, which has been reducing service at Mitchell, announced in September that it would eliminate 213 jobs in Milwaukee between Nov. 14 and Nov. 23.

The airline operates main hubs in Milwaukee and Denver and a secondary hub in Kansas City.


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[swamt]

Recieved this this morning:

Southwest could buy Frontier Airlines from Republic cheaper than in 2009 (AMR, LUV & RJET)


Southwest Airlines buys cheap and Frontier will be Bargain


By Jonathan Yates

Published: November 11, 2011 4:57:50 AM PST




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Rating



StockHQ:

RJET
$4.03+$0.08+2.03%

AMR
$2.27+$0.09+4.13%

LUV
$8.21+$0.10+1.23%






Southwest Airlines (NYSE: LUV) could be the big winner as Frontier Airlines is put on the auction bloc by Republic Airways Holdings (NASDAQ: RJET) as it seeks to avoid the likely fate of Chapter 11 for American Airlines (NYSE: AMR).

Ironically, Republic Airways bested Southwest Airlines for Frontier Airlines in 2009, after it filed for bankruptcy. But higher fuel costs and competition from Southwest AIrlines now has Republic Airways looking to sell Frontier Airlines. The announcement earilier this week made Republic Airways a top gainer, definitely an unusual position for the company as the stock has been decimated in 2011. Republic Airways is now at $3.95, down from a year high of $8.50.

It was competition from Southwest Airlines that mortally wounded Frontier Airlines at its Denver hub. Now the acquisiton of Frontier Airlines would greatly augment the presence of Southwest Airlines at Denver. Buying Frontier also does away with a major competitor of Southwest Airlines in the discount sector of the market.

Frontier Airlines has appeal to Southwest Airlines in many other areas. First, and foremost, it will be a cheap acquisition. As detailed in previous articles on www.smallcapnetwork.com, "Southwest AIrlines Stock is Ascending through Shrewd Acquisitions, like Warren Buffett and Berkshire Hathaway," Southwest Airlines buys low. It also brings many A-320s to Southwest Airlines. Before recently buying Airtran, Southwest Airlines only flew Boeing-737s.

It has been a difficult year for the airlines industry. Lower passenger traffic from The Great Recession and higher fuel costs have been very damaging. Some analysts expect to see American Airlines file for bankruptcy in early 2012 as the stock now is at $2.18 a share, down from a year high of $8.89. . But the new year could see another acquistion for Southwest Airlines, again done at a bargain price.

[buscador]

swamt, on 11 November 2011 - 10:46 AM, said:

Recieved this this morning:

Southwest could buy Frontier Airlines from Republic cheaper than in 2009 (AMR, LUV & RJET)


Southwest Airlines buys cheap and Frontier will be Bargain


By Jonathan Yates

Published: November 11, 2011 4:57:50 AM PST




1
Print Email

0 Comment(s) - Post a Comment

Rating



StockHQ:

RJET
$4.03+$0.08+2.03%

AMR
$2.27+$0.09+4.13%

LUV
$8.21+$0.10+1.23%






Southwest Airlines (NYSE: LUV) could be the big winner as Frontier Airlines is put on the auction bloc by Republic Airways Holdings (NASDAQ: RJET) as it seeks to avoid the likely fate of Chapter 11 for American Airlines (NYSE: AMR).

Ironically, Republic Airways bested Southwest Airlines for Frontier Airlines in 2009, after it filed for bankruptcy. But higher fuel costs and competition from Southwest AIrlines now has Republic Airways looking to sell Frontier Airlines. The announcement earilier this week made Republic Airways a top gainer, definitely an unusual position for the company as the stock has been decimated in 2011. Republic Airways is now at $3.95, down from a year high of $8.50.

It was competition from Southwest Airlines that mortally wounded Frontier Airlines at its Denver hub. Now the acquisiton of Frontier Airlines would greatly augment the presence of Southwest Airlines at Denver. Buying Frontier also does away with a major competitor of Southwest Airlines in the discount sector of the market.

Frontier Airlines has appeal to Southwest Airlines in many other areas. First, and foremost, it will be a cheap acquisition. As detailed in previous articles on www.smallcapnetwork.com, "Southwest AIrlines Stock is Ascending through Shrewd Acquisitions, like Warren Buffett and Berkshire Hathaway," Southwest Airlines buys low. It also brings many A-320s to Southwest Airlines. Before recently buying Airtran, Southwest Airlines only flew Boeing-737s.

It has been a difficult year for the airlines industry. Lower passenger traffic from The Great Recession and higher fuel costs have been very damaging. Some analysts expect to see American Airlines file for bankruptcy in early 2012 as the stock now is at $2.18 a share, down from a year high of $8.89. . But the new year could see another acquistion for Southwest Airlines, again done at a bargain price.

Unfortunately for the little people at F9, the pilots ruined a career and a chance at a well run company in SWA, I would be more than shocked if SWA would pull the trigger on this deal before the dust settles on the FL deal,,, may be too little too late for the rest of the F9 employees who lost out because of Pilot arrogance...curious to know what the F9 pilots think now of those few arrogant Pilots that snubbed SWA...

[signals]

I've said it many times before and believe that this is the result of a vicious WN attack against F9. WN wanted F9 when it was in BK, but the judge awarded it to Republic...REMEMBER?

The end will justify the means and I'm betting that LUV will WN this one because it means more gates at Datlanta! Now lets see if we get a spin

[signals]

buscador, on 12 November 2011 - 11:39 PM, said:

Unfortunately for the little people at F9, the pilots ruined a career and a chance at a well run company in SWA, I would be more than shocked if SWA would pull the trigger on this deal before the dust settles on the FL deal,,, may be too little too late for the rest of the F9 employees who lost out because of Pilot arrogance...curious to know what the F9 pilots think now of those few arrogant Pilots that snubbed SWA...

Don't know what F9 pilots had to do with it. I read the judge awarded F9 to Republic, even though WN outbid them. The only threat I could see from the pilots would be because WN announced it would replace all their Airbus with American-made Boeing!