SWA submits ONLY binding bid.....

[JumpJetter]

So if SWA submits the only bid...how does that change the dymanic?

UPDATE 2-Southwest submits $170 mln binding bid for Frontier

Mon Aug 10, 2009 3:09pm EDT
(New throughout; Adds details from Southwest announcement)
NEW YORK, Aug 10 (Reuters) - Southwest Airlines (LUV.N: Quote, Profile, Research, Stock Buzz) said on Monday it submitted a binding bid of more than $170 million for Frontier Airlines Holdings Inc (FRNTQ.PK: Quote, Profile, Research, Stock Buzz), at least $56 million more than its initial offer for the bankrupt carrier.
In a release, Southwest said it acquire about 80 percent of Frontier's existing fleet of 51 Airbus planes, plus all of Lynx, a regional carrier that operates 11 aircraft for Frontier.
A transition to Southwest's Boeing 737s and the retirement of Frontier's planes will occur over a period of 24 months.
Southwest said it intends to maintain "all existing markets" and add new nonstop routes from Denver that are not served by either carrier currently.
An auction for the Frontier is expected to commence on Thursday, August 13, Southwest said. Bankruptcy filings had indicated that the auction could occur as early as August 11.
"If our bid is successful, we will return to growth mode in the midst of a deep recession, expand our network in Denver to include many attractive destinations that we don't currently serve today, and offer Denver travelers a stable, low-fare airline," said Southwest Chief Executive Gary Kelly in a blog post.
In late July, Dallas-based Southwest said it was vying to buy Frontier for $113.6 million, besting an earlier bid from Republic Airways Holdings (RJET.O: Quote, Profile, Research, Stock Buzz). A court approved the Republic bid but left the door open for higher offers.
Calls to press representatives for Republic and Frontier were not immediately returned.
The president of Frontier's pilots union told Reuters no other binding offers were submitted for Frontier. The Frontier Airline Pilots Association sits on the carrier's committee of unsecured creditors.
Southwest shares fell about 2.2 percent, or 20 cents, to $8.91 on the New York Stock Exchange at mid-afternoon. Republic Airways was off 24 cents, or 4.04 percent, at $5.70 on Nasdaq. (Reporting by Deepa Seetharaman; Editing by Richard Chang and Steve Orlofsky)

 

[California]

nevermind

 

[starchkr]

YGBSM!!!!!

Have you been following any of this?!?!?!

Only bid?

You need to go read all the other threads on this topic!

Stemler made that statement long before SWA submitted their "binding bid" this morning. Whadya know, that makes "two" binding bids.

 

[BUDDHA145]

so I just wonder how the Judge will roll now!!!! jobs security for the whole Frontier group or MULA$$$ and save haven for a few pilots and fa's

 

[climb2slow]

My first response was 'nevermind' as well. But i'll take a crack at this anyways.
1. Nothing has changed.

2. Republic's binding bid occurred weeks ago, today was the end of probation for OTHER interested parties to submit binding bids.

In other words, it doesnt do anything to the dynamic until they actually win the bid.

 

[Vegaspilot99]

Hmmm...aircraft 11 still hasn't shown up. Lynx is still a 10 Q operation as of today.

 

[General Lee]

Didn't Gary Kelly tell the pilots that there will be no arbitration, so if the F9 pilots don't agree to something, "No Deal"? I would think that if a "binding offer" is accepted, then the F9 pilots would have a better chance of getting a "better" deal than a staple, and could threaten arbitration (Bond McKaskil bill). If it is a "binding" offer, then how could Kelly then take it off the table if SWAPA doesn't like it? And, most importantly, when do F9 (I mean SWA) A319s go to LBB from DEN?


Bye Bye--General Lee

 

[OK3]

I think the offer to buy them is binding, integrating them is not required though. IOW SWA will own them if they win the auction but it can be run as a separate company depending on what happens with labor support for the deal. This still leaves some negotiating to be done between SWAPA and FAPA to try and save F9 jobs. And no one gets my LBB overnights General, that is a show stopper.

 

[Richard Gozinya]

Didn't Gary Kelly tell the pilots that there will be no arbitration, so if the F9 pilots don't agree to something, "No Deal"? I would think that if a "binding offer" is accepted, then the F9 pilots would have a better chance of getting a "better" deal than a staple, and could threaten arbitration (Bond McKaskil bill). If it is a "binding" offer, then how could Kelly then take it off the table if SWAPA doesn't like it? And, most importantly, when do F9 (I mean SWA) A319s go to LBB from DEN?


Bye Bye--General Lee

None of this concerns you!

 

[General Lee]

None of this concerns you!

You sound pathetic, and can't even muster up an answer. This is HANGER TALK, dumbarse. It concerns EVERYONE. If you don't like it, LEAVE. (and go do 6 legs to ISP)


Bye Bye--General Lee

 

[MILPILOT17]

You sound pathetic, and can't even muster up an answer. This is HANGER TALK, dumbarse. It concerns EVERYONE. If you don't like it, LEAVE. (and go do 6 legs to ISP)


Bye Bye--General Lee

General, I really hate to do this, but once again I have to agree. Thanks for the entertainment and fly safe!

 

[luv2fly]

I think the offer to buy them is binding, integrating them is not required though. IOW SWA will own them if they win the auction but it can be run as a separate company depending on what happens with labor support for the deal. This still leaves some negotiating to be done between SWAPA and FAPA to try and save F9 jobs. And no one gets my LBB overnights General, that is a show stopper.

SWAPA has scope language that doesn't allow a separate airline to operate, but will allow a fence to occur if negotiated. The offer is binding, but has contingencies, much like a real estate deal. The deal is off if any (just a random list) of the following occurs: DOJ doesn't approve, SWA BOD rejects offer, SWAPA and FAPA can't come to an agreement...etc.

 

[MCOE175]

This is good news! I hope that SWA gets f9... But I have to wish the pilots good luck on the SWA interview.

 

[The Prussian]

Hmmm...six legs to ISP, or six diseases in Lagos.... ....


I'm sorry,...got side tracked...carry on....

 

[Porch]

This is good news! I hope that SWA gets f9... But I have to wish the pilots good luck on the SWA interview.

Reveal your info source regarding F9 interview @ WN please.... I don't believe that info has been released as of yet. Thanks

 

[MCOE175]

Read other posts on here and the original bid offer... Southwest in original statement at as the need arose they would be extended on oportunity to apply with SWA.

 

[Porch]

Read other posts on here and the original bid offer... Southwest in original statement at as the need arose they would be extended on oportunity to apply with SWA.

O, I thought you got the "official" language from the agreement... I believe that's where the info will come from. Not via posts on FInfo or original statements. I guess we will know factually when the verbiage comes out in the agreed contract if WN wins the auction... Hopefully! Thanks

 

[DH2WN]

SWAPA M&A committee confirms SWA and SWAPA have no requirement to merge pilot groups and all F9 employees can be legally scuttled after draw down of the F9 operation. If the judge likes this or not is another story.

 

[Porch]

SWAPA M&A committee confirms SWA and SWAPA have no requirement to merge pilot groups and all F9 employees can be legally scuttled after draw down of the F9 operation. If the judge likes this or not is another story.

I guess we'll see, nothing factual that I've seen.

 

[FDJ2]

I think the offer to buy them is binding, integrating them is not required though. IOW SWA will own them if they win the auction but it can be run as a separate company depending on what happens with labor support for the deal. This still leaves some negotiating to be done between SWAPA and FAPA to try and save F9 jobs. And no one gets my LBB overnights General, that is a show stopper.

I believe FAPA's PWA requires integration under these circumstances, as does SWAPA's. There has been no move to reject the FAPA PWA through an 1113c and I believe that SWA's bid probably ends that out at this point. As has traditionally been the case, furloughs and hiring after an acquisition is announced are considered "post constructive notice." So its likely that a snap shot of the seniority lists and category lists at this time or in the near future will probably be used when constructing the integrated seniority list, either through negotiations or through arbitration.