Frontier Airlines becomes Wholly Owned subsidary of Republic

[Whataburger]

I heard Virgin American was going to make a play. I don't think this is a done deal.

 

[Vegaspilot99]

I heard Virgin American was going to make a play. I don't think this is a done deal.

God I hope so...ANYTHING would be better than Republic.

 

[Noserider76]

5. RAH will not lose business with it's other mainline parnters. Delta contracts with Shuttle and Chautauqua. They do not contract with Republic, or the new Frontier side of ths business. No major partner has a contract with RAH's Frontier, and cannot dictate who or what Frontier does. If Frontier was rolled into the Shuttle America certificate, THEN United or Delta could throw a fuss and have a say, but as stated earlier, Frontier will be a separate certificate and entity. A new certificate is not grounds for breaking contract for any of our major airline partners. RAH flies for 7 airlines currently. That alone shows that flying for competing interests is allowed.

We'll see what happens there. The shell game to get around mainline scope protections is about to be tested. One seniority list and 5 certificates?

 

[Superpilot92]

We'll see what happens there. The shell game to get around mainline scope protections is about to be tested. One seniority list and 5 certificates?

I agree 100%!!!

 

[BlackPilot628]

We'll see what happens there. The shell game to get around mainline scope protections is about to be tested. One seniority list and 5 certificates?

And we will fight tooth and nail to make sure we keep it ONE LIST.

 

[crashpad]

First, let me answer your fears of this becoming another Midwest. This will not be another Midwest, and here is why. Midwest was/is losing aircraft, not because of Republic, but because of an inability to afford it's 717 fleet. RAH was contracted to replace the already-going-away aircraft. Frontier is not returning airplanes to the leasing agents, or at least that hasn't been said yet.

Now, in response to many of the above threads, this is how an RAH financed bankruptcy exit will work:

1. The RAH finance plan must get approved by the courts.

2. The RAH plan must be the "highest bidder" for the Frontier financing. Anyone else, including Delta or United or Skywest, could offer more money or a better plan and win the judge's favor. RAH is not already the de facto owner of Frontier, they are just the first to make an offer

But, assuming RAH's offer is apporved...

3. The RAH CBA requires that Frontier pilots be merged into our single master seniority list.

4. The original poster of this thread stated that RAH wants to operate Frontier as a separate entity. This is allowable and understandable from a business point of view, but realize that it pertains only to the business side of things. Frontier will be Frontier, but that does not guarantee who will be flying which airplanes. As said above, the Frontier pilots will be merged into the RAH seniority list. Things like fences are negotiated between the unions. Bedford will not decide that. The pilots will.

5. RAH will not lose business with it's other mainline parnters. Delta contracts with Shuttle and Chautauqua. They do not contract with Republic, or the new Frontier side of ths business. No major partner has a contract with RAH's Frontier, and cannot dictate who or what Frontier does. If Frontier was rolled into the Shuttle America certificate, THEN United or Delta could throw a fuss and have a say, but as stated earlier, Frontier will be a separate certificate and entity. A new certificate is not grounds for breaking contract for any of our major airline partners. RAH flies for 7 airlines currently. That alone shows that flying for competing interests is allowed.

6. Pay. What a loaded topic. Here is how that will go. The Airbus fleet is all above the 99 seat max pay scale that is part of the RAH CBA. ANy larger aircraft will require that a new payscale be enacted in a specified time frame. With this announcement, you can be sure that the union will begin that process ASAP. This you all know from the endless Midwest 190 threads. Now, when it comes to what rate is appropriate... The RAH union will be able to negotiate a good rate based on that fact that the current Airbus pay at Frontier still allows profit. Frontier has been profitable for 6 quarters now. There is no argument that current Airbus rates are unaffordable. With Midwest, the mainline pilots rates were arguably (though I don't agree, but we are talking business perspective here) contributing to the losses of the airline. Acquiring Frontier will greatly inprove RAH pilots' ability to get good pay for both seats on larger equipment.

7. The Q 400's. Who knows what will become of Lynx. One constant in the crazy ride known as Bedford's business plan is that he does not want props. He turned down the opportunity to fly the Q400 for Continental. But, Lynx will be owned by RhAH, which means those pilots will have to be merged into the RAH seniority list. However, the plan for a sustainable business upon exiting bankruptcy MAY call for Lynx aircraft to be sold off. This is a big wait and see item. I like the plane, but the guy writing the big checks does not seem to. His call, not mine.

8. The Teamsters, which have been poor representitives for RAH pilots over the years, is actually operating well for now. The trusteeship that has taken over the Local and thrown out the lazy and weak legal counsel has so far done a good job. These new guys have more teeth, and are much more willing to dig in for a fight with management. You can actually expect different results for once! There is a reason to hope.

9. RAH has pilots on furlough. However, I do not think that anything close to a "stapling" of the Frontier pilot group to the RAH seniority list will occur. RAH furloughs will likely stay on furlough, with the exception of perhaps a few pilots. Avoiding furlough is a bargaining chip the Frontier pilots will have to play. That may cost them some fences, or seniority on the new integrated list. Who knows. I do think that Frontier pilots will carry in longevity for pay purposes, as was the result of the Shuttle America merger. But again, all of that is up to the pilots to negotiate.

Best post on this whole thread. Very close to how this will play out IF Republic wins. This bidding has just begun

 

[Indy319FA]

We'll see what happens there. The shell game to get around mainline scope protections is about to be tested. One seniority list and 5 certificates?

How is it to be tested? I'm not saying I support this, but the contract language is what it is. It says nothing about holding companies. Seniority lists have nothing to do with this. A holding company is not an air carrier because it has no operating certificate. An air carrier is defined as having an operating certificate, so as long as the the 319s and 195s stay on the Republic or Frontier certificate, there is nothing that can be done until the contracts are renegotiated, or terminated early which will be very expensive and allow Bedford to stick Delta or United with leases on a bunch of 50 seat aircraft that are becoming liabilities anyway.

Bedford may be a lot of things, but one of them is not stupid when it comes to negotiating and enforcing contracts.

 

[N2264J]

There must be some severe neck injuries from the whiplash as comments went from "You can't make money with little jets" and "Everyone knows RJs are not profitable" to "Republic is going to do what?"

This is just too funny. Apparently, Wexford has enough money to buy another airline.

 

[GuppyWN]

$106 million is a steal.

Gup

 

[Popeye0537]

God I hope so...ANYTHING would be better than Republic.

WOW, this comming from an A$$ hat who applied at Compass, Mesaba, Lynx, Great Lakes and COULDN'T get hired! Even Ameriflight won't take you back......

Call me when you land a job BACK in aviation.