swa buying f9

[pilot05]

what is up?

 

[dougdrvr]

what is up?

The thick plotens
............................

 

[Tug Driver]

http://www.marketwatch.com/story/southwest-submits-proposal-to-buy-frontier-air-2009-07-30

 

[SennaP1]

Please, Please, Please.

 

[RobCat]

good luck

 

[Cheeta]

Please, Please, Please.

Careful what you "beg" for.....you might just get it.

ATA, Morris Air.........

Only a small % moves on to SWA list.

 

[StaySeated]

For the record, Morris air was acquired and their entire seniority list was stapled to the SWA list.

ATA ceased operation. After they closed their doors, SWA purchased some of their assets and gave their pilots a form of "preferential" interview. We all know how that worked out.

Neither of these cases are similar to F9.

 

[FO 4 Life]

You don't think F9 being bankrupt is similar to the ATA deaL? Wishful thinking I'm afraid.

 

[StaySeated]

It is very different.

ATA = didn't have capital to even enter Ch. 11 reorganziation. They filed Ch. 7 and ceased operations.

F9= obtained initial DIP and at least two exit financing proposals. Currently operating, with 8 months of profitable operations in a row. If neither exit financing proposals come to fruition, we will shut down.

Until then, the two situations are completely different. They both suck, but they are completely different.

 

[sshrae]

You don't think F9 being bankrupt is similar to the ATA deaL? Wishful thinking I'm afraid.

Southwest never made a bid to buy ATA, they just purchased some gates and started a code share to HI and maybe a few other places. I think they are very different. Not saying this is all good and no worries for f9, I am wondering if swa's motivation is just the gates in DEN, but a different deal altogether than the ATA agreement.

 

[FO 4 Life]

First, ATA didn't cease operations until 3+ years after SWA propped them up. For Frontier guys/gals I hope it will be different but I think SWA just wants the gates and some routes. They could just buy assets out of the bankruptcy.

Or, give money for Frontier to continue operations on city pairs not flown by SWA. As SWA expands, F9 routes decrease. ATA code shared to Hawaii, LGA and a few other places that SWA did not operate. Today, SWA operates to most of the cities ATA did (LGA, SFO, etc) except Hawaii.

 

[sshrae]

First, ATA didn't cease operations until 3+ years after SWA propped them up. For Frontier guys/gals I hope it will be different but I think SWA just wants the gates and some routes. They could just buy assets out of the bankruptcy.

I agree, the assets alone would yield more than they are offering to buy them for. 118 million is pretty cheap in my opinion. Those gates in DEN are not cheap.

 

[Minimaniac]

I am surprised that SWA offered just 5 million more. I would have imagined the offer would have been sweetened to level that RAH could not counter offer. But, I guess this is just an auction, and 5 million seems to be the incremental bid increase. Look for 118 from RAH shortly, followed by 123 from SWA, etc.

I don't know how much actual interest SWA has in F9, but it certainly benefits SWA to drain the resources of RAH, and raising the cost of F9 through auction is an easy way to do it.

 

[Indy319FA]

Funning thing is, if SWA is successful they have to cut Bedford a check for the financing Republic provided Frontier.

Typical Bedford. If he wins, he wins. If he loses, he still wins.

 

[sshrae]

Funning thing is, if SWA is successful they have to cut Bedford a check for the financing Republic provided Frontier.

Typical Bedford. If he wins, he wins. If he loses, he still wins.

He is going to need the money to stay afloat after his plan falls apart. That money is not going to last too long.