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FAPA President, "Happy with the outcome."

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shearedshaft

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Apr 16, 2004
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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)
 
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.
 
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.
 
The RAH deal is much better that the SWA deal.

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

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