FAPA President, "Happy with the outcome."

shearedshaft

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UPDATE 2-Republic wins Frontier auction over Southwest


By Deepa Seetharaman
NEW YORK/ATLANTA, Aug 13 (Reuters) - Republic Airways Holdings won its bid to buy bankrupt Frontier Airlines Holdings Inc for $108.75 million after a day-long auction in bankruptcy court late Thursday.
Republic beat out heavy favorite Southwest Airlines Co who waded into the mix in late July and ultimately submitted a binding offer of $170 million.

Labor issues between pilots' unions at Southwest and Frontier played a part in bogging down a deal. An agreement between the two parties was a necessary condition of the Southwest bid.
"It was a long process that's not quite over but I'm happy with the outcome," said John Stemmler, president of the Frontier Airlines Pilots' Association, of Republic's win.
"It happens to be aligned with keeping more jobs and we're very pleased with that."
Republic improved upon its bid by agreeing to waive recovery rights on its $150 million general unsecured claim, a move expected to boost the distribution to Frontier's unsecured creditors by 94 percent, Frontier said in a release.
Indianapolis-based Republic was Frontier's largest unsecured creditor.
"Republic submitted the highest and best bid, which included substantial improvements from its original investment proposal," Frontier said in its statement.
LABOR ISSUES; THE 'NEW REPUBLIC'
Industry experts had by and large expected Southwest to win the auction, a move that would have grown its presence in Denver and allowed it to explore international routes.
Southwest said a key reason its bid wasn't chosen was because it chose not to remove a requirement calling for pilot unions at its company and Frontier to reach agreement.
Pilots for Southwest and Frontier were in talks until nearly midnight Wednesday, but seniority remained a major sticking point between the two groups.

Stemmler said FAPA and Republic's pilots, who are Teamsters, have not yet discussed senority terms.
Republic, which runs regional flights with large airline partners, first reached a deal to buy Frontier earlier this summer.

Its plan provides for Frontier and its subsidiary Lynx Aviation to operate as subsidiaries of the overall company.
"As the regional airline industry feels the pain of their network airline customers' challenges, many will watch the "New Republic" closely to see if this is the new model for the industry," said Oliver Wyman consultant Andrew Watterson.
Frontier, which filed for Chapter 11 bankruptcy protection in April 2008, said it expected to emerge from Chapter 11 in the autumn.
The case is In re: Frontier Airlines Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-11298.
(Reporting by Karen Jacobs and Deepa Seetharaman; editing by Carol Bishopric)
 

joevollers

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UPDATE 2-Republic wins Frontier auction over Southwest


Stemmler said FAPA and Republic's pilots, who are Teamsters, have not yet discussed senority terms.
Republic, which runs regional flights with large airline partners, first reached a deal to buy Frontier earlier this summer.


(Reporting by Karen Jacobs and Deepa Seetharaman; editing by Carol Bishopric)
OK... Not in the loop yet about this fact. The F9 pilots seriously don't have the seniority thing squared away with republic and they are excited? Please at least tell me they have the rights to all Denver flying even in the regardless of a/c type.

If they do not, then please explain why this is the better deal than SWA.
 

Quimby

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The pres. is happy with the deal (or no deal)......what about the rest of FAPA?
 

starchkr

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OK... Not in the loop yet about this fact. The F9 pilots seriously don't have the seniority thing squared away with republic and they are excited? Please at least tell me they have the rights to all Denver flying even in the regardless of a/c type.

If they do not, then please explain why this is the better deal than SWA.
Don't quite know yet, but i have been told that a favorable SLI was negotiated with RAH awhile back. I think DEN was to be put under a fence and that no RAH pilot could take a bus slot until all current F9 pilots are in the left seat...again, i could be wrong.
 

Cornelius

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The RAH deal is much better that the SWA deal.

Just wait till we see the facts in the next couple days.
 

MILF Hunter

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Don't quite know yet, but i have been told that a favorable SLI was negotiated with RAH awhile back. I think DEN was to be put under a fence and that no RAH pilot could take a bus slot until all current F9 pilots are in the left seat...again, i could be wrong.

I believe that rah contract says all flying is done one one seniority list. How could an agreement be made if the rjet pilots havn't negotiated.

can any rjet guys verify this
 

ATRCAPT

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I must say I'm glad it fell through. I didn't want to eat the sh!t sandwich, but I sure didn't want to feed it to anyone either. Good luck to you guys, I hope it works out for you.

Cheers
 

joevollers

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Don't quite know yet, but i have been told that a favorable SLI was negotiated with RAH awhile back. I think DEN was to be put under a fence and that no RAH pilot could take a bus slot until all current F9 pilots are in the left seat...again, i could be wrong.
So what happens if RAH gets rid of the buses?

I only ask b/c if there's no protection for that, then the bottom of the SWA list would look pretty sweet from my vantage point.
 

joevollers

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Tha same thing that would have happened to me if we got the SWA bid...I'd be out of a job.

You make that presumption about a company that has the strongest finances of the pax carriers, wants to grow by 10%, and has never furloughed ever?
 

Tanker Clown

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Upgrades? What's that? What is it now at SWA? Probably about the same i would guess.
Dude, I'm asking. You said that DEN is an all F9 joint until everyone upgrades. You mentioned it, not me. I'm a SWA hopefull, but would like to live in Colorado after I retire. I'd also like to upgrade pretty quick since I'm playing catch up in the airline industry due to military service. I just thought maybe getting on at Republic could get me out to Colorado sooner than waiting for SWA to open a DEN hub.
 

starchkr

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You make that presumption about a company that has the strongest finances of the pax carriers, wants to grow by 10%, and has never furloughed ever?
Ok, i'll post this again...SWA wanted only 80% of the planes which meant 80% of the pilots...which means i would have been on the street...which means that the company with "the strongest finances of the pax carriers" would have furloughed from day one. I may have said that in another thread though, so i'll give ya some lee way.;)
 

starchkr

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Dude, I'm asking. You said that DEN is an all F9 joint until everyone upgrades. You mentioned it, not me. I'm a SWA hopefull, but would like to live in Colorado after I retire. I'd also like to upgrade pretty quick since I'm playing catch up in the airline industry due to military service. I just thought maybe getting on at Republic could get me out to Colorado sooner than waiting for SWA to open a DEN hub.
Truthfully i don't know, i have heard good things from the RAH deal, but they could just be propaganda, we all know how that goes. MY "assumption" is that DEN is an all F9 place until everyone upgrades, i don't know for sure yet, but they will probably let us all know really soon what the wants are going to be from both sides(read that as "make them public"). From what i hear they may actually be very quick, but again, i don't truly know.
 

joevollers

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Ok, i'll post this again...SWA wanted only 80% of the planes which meant 80% of the pilots...which means i would have been on the street...which means that the company with "the strongest finances of the pax carriers" would have furloughed from day one. I may have said that in another thread though, so i'll give ya some lee way.;)
Look,

I have no dog in this hunt. At one point, I would have liked to work for either F9 or SWA b/c they both have had good cultures. I guess it's a cold hard choice you guys had to make, and you had to decide what's best for you. From my outsiders perspective though, I would let the culture of the company that would be on my next ID tip my decision that way. SWA may be ruthless in how they compete, but they take care of their own.

Good luck
 

Popeye0537

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According to BB he wants to operate F9 as a stand alone. He will probably sell 50% of F9 to another creditor and that will end all talks of intergration. I'm glad for the F9 guys, they still have a job and the future is in thier hands not WN.


Ha ha, hey Joe ask the ATA guys how well they got taken care of.
 
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instructordude

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Now that Republic owns Frontier when do guys think they will be hiring on the Bus and what will the minimums be??
 

Skyboy722

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According to BB he wants to operate F9 as a stand alone. He will probably sell 50% of F9 to another creditor and that will end all talks of intergration. I'm glad for the F9 guys, they still have a job and the future is in thier hands not WN.


Ha ha, hey Joe ask the ATA guys how well they got taken care of.
Your post is a complete contradiction. He will sell 50% of F9, kill all talks of integration, yet they still have a job and the future is in their hands??
 
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