Will Republic Survive?

[bigbird]

Do you think Republic will survive? They have big odds against them.

 

[Anonymous2]

A lot of peeps will probably lean towards the answer that would be no. But my guess is as good as yours. The dice will keep rolling until someone goes bankrupt.

 

[Jetjockey]

Just because everyone hates them and wants them to fail, doesn't mean they will.

 

[N1atEcon]

Just because everyone hates them and wants them to fail, doesn't mean they will.

Just look at how long it took for MESA to become what it is. Their stock once hit $22.75 about 15 years ago, today it closed at a measly .07 cents. OUCH!

 

[maxblast72]

Just look at how long it took for MESA to become what it is. Their stock once hit $22.75 about 15 years ago, today it closed at a measly .07 cents. OUCH!

Mesa didn't take on SWA and Airtran with their own branded operations. You have to admit, Bedford has a set of big balls.

 

[GuppyWN]

Remind me in 5 years that Bedford didn't have to raise the bid last year or that maybe Gary should have.

It'll be interesting.

Gup

 

[maxblast72]

Gup, Gary did the right thing. You guys will get your DEN market without Frontier and without worrying about integrating Frontier labor just like Airtran will still get MKE without the Midwest labor integration problems that would have come about if Airtran's 2007 buyout attempt would have been successful.

 

[CitationLover]

It'll last as long as the other carriers continue to subsidize the branded operation.

 

[michael707767]

It'll last as long as the other carriers continue to subsidize the branded operation.

There lies the problem. I don't see any majors continuing their association with Republic beyond the current contract.

 

[rider850]

There lies the problem. I don't see any majors continuing their association with Republic beyond the current contract.

Don't fool yourself. I could see a Dallas based company allowing Republic to fly 100 seat jets for them.

 

[AA717driver]

Don't fool yourself. I could see a Dallas based company allowing Republic to fly 100 seat jats for them.

You mean a Ft. Worth-based carrier...

TC

 

[rider850]

n

Yep. That is what I meant.LOL

 

[CitationLover]

There lies the problem. I don't see any majors continuing their association with Republic beyond the current contract.

Thats laughable at best. The upper brass COULD CARE LESS who flies their domestic (and eventually international) routes. Frontier/Midwest is a niche carrier and doesn't threaten ALL airlines evenly, thus they will CONTINUE to provide feed to the majors, especially if the continued operation SAVES them money by lowering OVERALL labor costs. For example: AMR could care less about reducing overall DEN/MKE revenue as they are smaller markets for them. In addition, CHQ allows them to whipsaw ALL aspects of Eagles operations to maintain lower costs.

The same logic can be applied to DAL/UAL. If they can reduce labor costs by 10% and use the new Frontier/Midwest as an example, I think they get their money's worth on the subsidy they pay to RAH.

 

[Anonymous2]

Gup, Gary did the right thing. You guys will get your DEN market without Frontier and without worrying about integrating Frontier labor just like Airtran will still get MKE without the Midwest labor integration problems that would have come about if Airtran's 2007 buyout attempt would have been successful.

I don't think tran will get mke. I think ultimately, swa will get mke. You may as well say rah is out, but to me, tran doesn't really have a place in this picture either. Swa may just let tran spend all the $$ to eliminate rah from mke, then they (swa) will pounce on tran. I could be wrong, after all its just speculation. Its just my view on the way things may play out.

 

[Secret Squirrel]

Then why hasn't SWA forced "Tran" out of BWI, MCO, FLL, TPA, MDW, ETC?

 

[BoilerUP]

Yes, Republic will survive.

 

[Yuppyguppy]

no....they are DOA

 

[Jetjockey]

Yes, Republic will survive.

Survive, that remains to be seen.............thrive I seriously doubt. Enjoy the wave while its lasts.

 

[StopNTSing]

Then why hasn't SWA forced "Tran" out of BWI, MCO, FLL, TPA, MDW, ETC?

SWA doesn't "force" anyone out of anywhere. They price their product at an appropriate level for them. If others can compete with that, then knock yourselves out.

 

[maxblast72]

SWA doesn't "force" anyone out of anywhere. They price their product at an appropriate level for them. If others can compete with that, then knock yourselves out.

If that is true, SWA will never force Airtran out of anywhere as Airtran's CASM is about 10% lower than Southwest's.