shootr
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- Nov 25, 2001
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Southwest Airlines has added a news release to its Investor Relations website.
Title: Southwest Airlines' Bid to Acquire Frontier Not Selected at Auction
Date: 8/13/2009 7:45:00 PM
For a complete listing of our news releases, please click here
Carrier's Refusal to Remove Labor Requirement Key in Decision DALLAS, Aug. 13 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV)confirmed today that its bid to acquire Frontier Airlines was not selected.Southwest submitted a bid of more than $170 million to Frontier Airlines onMonday, Aug. 10, 2009, in accordance with the procedures established in theU.S. Bankruptcy Court for the Southern District of New York.
"We said all along that we would only move forward on this deal if itproved to be the right decision for our Employees and financially prudent forour Company," said Gary Kelly, Southwest's Chairman of the Board, President,and CEO. "We have a mission to preserve and protect our Culture and the bestinterests of our Employees, Customers, and Shareholders. This was a greatopportunity that required us to act fast. A lot of people worked very hardwith every intention of making this work. We were fortunate to be in aposition to examine the acquisition to see if it was the right decision forSouthwest Airlines. We chose not to amend our bid to remove the laborrequirement, a key reason our bid was not selected. Our congratulations toRepublic Airways and Frontier Airlines."
As stated in its initial statement of interest on July 30, 2009, Southwestsaid there would be several contingencies to be resolved for a deal to gothrough. Key in its position, Southwest was not willing to remove the need forthe two Pilot Unions to reach agreement. Southwest says its Culture andrelationships with its Employees are too important to compromise.
"Southwest remains committed to serving the Denver market with our lowfares and excellent Customer Service," Kelly said. "We began serving Denver in2006 with just 13 flights and have grown to offer 112 nonstop daily flightstoday. We are very pleased with the response we have seen to our service andgrowth in Denver, and we will continue to compete vigorously in the market."
One of the contingencies in Southwest's proposal was that labor groupsfrom the two airlines would need to reach an agreement on how the two PilotUnions (SWAPA and FAPA) would work together. Despite a good faith and diligenteffort by all involved, including the top leadership of the Southwest AirlinesPilots Association (SWAPA) and the Frontier Airlines Pilots Association(FAPA), who labored long into the night, the two unions were not able to cometo an agreement before the auction deadline. As a result, Southwest's bid wasdeemed unacceptable.
Frontier filed for bankruptcy court protection in April 2008. Southwestsubmitted its initial indication of interest to acquire Frontier Airlines onJuly 30, 2009, which gave the carrier an opportunity to engage with Frontierin the due diligence required to determine the scope of a binding proposal.Southwest submitted a bid of more than $170 million to acquire Frontier onMonday, Aug. 10, 2009.
After 38 years of service, Southwest Airlines offers a reliable productwith exemplary Customer Service. Southwest Airlines is the most productiveairline in the sky and offers Customers a comfortable traveling experiencewith all premium leather seats and plenty of legroom. Southwest recentlyupdated its gate areas and improved its boarding procedure to make flyingSouthwest Airlines even more convenient and simple. Southwest Airlinescurrently serves 66 cities in 33 states, and announced service to BostonLogan, which begins Aug. 16, 2009, and to Milwaukee, which begins Nov. 1,2009. Southwest currently operates more than 3,200 flights a day and hasnearly 35,000 Employees systemwide.
www.southwest.com
No need for further discussion. I truly hope it works out for all of you.
Sincerely,
shootr
Title: Southwest Airlines' Bid to Acquire Frontier Not Selected at Auction
Date: 8/13/2009 7:45:00 PM
For a complete listing of our news releases, please click here
Carrier's Refusal to Remove Labor Requirement Key in Decision DALLAS, Aug. 13 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV)confirmed today that its bid to acquire Frontier Airlines was not selected.Southwest submitted a bid of more than $170 million to Frontier Airlines onMonday, Aug. 10, 2009, in accordance with the procedures established in theU.S. Bankruptcy Court for the Southern District of New York.
"We said all along that we would only move forward on this deal if itproved to be the right decision for our Employees and financially prudent forour Company," said Gary Kelly, Southwest's Chairman of the Board, President,and CEO. "We have a mission to preserve and protect our Culture and the bestinterests of our Employees, Customers, and Shareholders. This was a greatopportunity that required us to act fast. A lot of people worked very hardwith every intention of making this work. We were fortunate to be in aposition to examine the acquisition to see if it was the right decision forSouthwest Airlines. We chose not to amend our bid to remove the laborrequirement, a key reason our bid was not selected. Our congratulations toRepublic Airways and Frontier Airlines."
As stated in its initial statement of interest on July 30, 2009, Southwestsaid there would be several contingencies to be resolved for a deal to gothrough. Key in its position, Southwest was not willing to remove the need forthe two Pilot Unions to reach agreement. Southwest says its Culture andrelationships with its Employees are too important to compromise.
"Southwest remains committed to serving the Denver market with our lowfares and excellent Customer Service," Kelly said. "We began serving Denver in2006 with just 13 flights and have grown to offer 112 nonstop daily flightstoday. We are very pleased with the response we have seen to our service andgrowth in Denver, and we will continue to compete vigorously in the market."
One of the contingencies in Southwest's proposal was that labor groupsfrom the two airlines would need to reach an agreement on how the two PilotUnions (SWAPA and FAPA) would work together. Despite a good faith and diligenteffort by all involved, including the top leadership of the Southwest AirlinesPilots Association (SWAPA) and the Frontier Airlines Pilots Association(FAPA), who labored long into the night, the two unions were not able to cometo an agreement before the auction deadline. As a result, Southwest's bid wasdeemed unacceptable.
Frontier filed for bankruptcy court protection in April 2008. Southwestsubmitted its initial indication of interest to acquire Frontier Airlines onJuly 30, 2009, which gave the carrier an opportunity to engage with Frontierin the due diligence required to determine the scope of a binding proposal.Southwest submitted a bid of more than $170 million to acquire Frontier onMonday, Aug. 10, 2009.
After 38 years of service, Southwest Airlines offers a reliable productwith exemplary Customer Service. Southwest Airlines is the most productiveairline in the sky and offers Customers a comfortable traveling experiencewith all premium leather seats and plenty of legroom. Southwest recentlyupdated its gate areas and improved its boarding procedure to make flyingSouthwest Airlines even more convenient and simple. Southwest Airlinescurrently serves 66 cities in 33 states, and announced service to BostonLogan, which begins Aug. 16, 2009, and to Milwaukee, which begins Nov. 1,2009. Southwest currently operates more than 3,200 flights a day and hasnearly 35,000 Employees systemwide.
www.southwest.com
No need for further discussion. I truly hope it works out for all of you.
Sincerely,
shootr
