Frontier Airlines becomes Wholly Owned subsidary of Republic

[flynryan15]

The only saving grace is the article unless a better offer surfaces. Can Jet Blue make a play?

 

[ATRCA]

I'm not in the least bit concerned that RAH is going to become some kind of powerhouse in the industry. We're talking about an RJ operator latching on to a very small and hardly profitable National airline. The new airline will face tremendous competition and if RAH were to in fact lose code share contracts they would be hard pressed to finance their new "Major" airline for long.

This is positioning, nothing else. A small Bus operator in DEN is hardly going to produce a "game changer" if you will.

 

[lowlycfi]

Where are they going to fly them to? Does Republic know anything about marketing an airline? What about selling tickets?

Probably about as much as ACA/Independence and ExpressJet did, and those didn't work out to great.

By the way, I like the quote from Gen. McAuliffe.

 

[flynryan15]

I'm not in the least bit concerned that RAH is going to become some kind of powerhouse in the industry. We're talking about an RJ operator latching on to a very small and hardly profitable National airline. The new airline will face tremendous competition and if RAH were to in fact lose code share contracts they would be hard pressed to finance their new "Major" airline for long.

This is positioning, nothing else. A small Bus operator in DEN is hardly going to produce a "game changer" if you will.

Hope you are right!

 

[Headfake14]

Regarding a play by Jetblue. I haven't heard anything around the playgrounds here about us aquiring or buying into another carrier. Doesn't mean it hasn't been talked about during 'skunk works' meetings. But I don't see it happening right now.

We are getting ready to dig in with SWA in BWI and we're still at it with VX in JFK and IAD.

 

[jmreii]

I might be a conspiracy theory nut case, but what is to stop Republic from adding something like a A330? Then shifting all Ejets to their own airline, and almost overnight becoming a stand alone airline.

Money talks, everything else walks!

 

[ATRCA]

Hope you are right!

What if I'm wrong? What will that mean? Even if Frontier successfully emerges from BK with RAH supplying the cash what exactly should the rest of us take issue with? I'm just not all that afraid of RAH and the Reverend. Why is everyone else so enamored with this. So they own a small Airbus operator? What's the problem?

 

[flynryan15]

What if I'm wrong? What will that mean? Even if Frontier successfully emerges from BK with RAH supplying the cash what exactly should the rest of us take issue with? I'm just not all that afraid of RAH and the Reverend. Why is everyone else so enamored with this. So they own a small Airbus operator? What's the problem?

The problem could be them combining the small Airbus operator with their Ejets. Overnight they have a 200 plus aircraft airline with labor cost that would bring a tear to Frank Lorenzo's eye!

 

[ATRCA]

The problem could be them combining the small Airbus operator with their Ejets. Overnight they have a 200 plus aircraft airline with labor cost that would bring a tear to Frank Lorenzo's eye!

Perhaps but they have no market share. They have no stand alone route structure. They have no infrastructure to support a massive successful "start up" National airline. It takes a lot more than equipment to sustain a major stand alone airline operation. In order to do this, RAH would need to cut itself off from it's only revenue stream which is contract feed. Are you suggesting they will simply cease providing contract feed and over night start this "big" new airline. I just don't see it. Even if they did, the track record for such operations is hardly something to lose sleep over.

 

[aewanabe]

And why exactly should the RP pilots give a crap or "hold their heads lower than a Mesa pilot" because of the Reverend's actions again?

PS all you kiddies with CL65 in your profile ranting about E-Jets killing the mainline are hilarious. Especially those who fly the -700 or -900.

 

[~~~^~~~]

Where are they going to fly them to? Does Republic know anything about marketing an airline? What about selling tickets?

It just bought that ability.

 

[flynryan15]

Perhaps but they have no market share. They have no stand alone route structure. They have no infrastructure to support a massive successful "start up" National airline. It takes a lot more than equipment to sustain a major stand alone airline operation. In order to do this, RAH would need to cut itself off from it's only revenue stream which is contract feed. Are you suggesting they will simply cease providing contract feed and over night start this "big" new airline. I just don't see it. Even if they did, the track record for such operations is hardly something to lose sleep over.

Like I said I am probably thinking crazy talk here.

 

[Lampshade]

Wonder if this might violate one of the mainline carriers' scope clauses. I seem to remember that was one of the ways UAL worked to kill Indy Air. Indy could not operate the 320's because they violated UAL scope, but UAL would not release ACA (parent of Indy Air) from their obligations for express service, unless ACA paid very high penalties to get out. This effectively bled ACA dry. Does this look like a possibility? 'Cause RP needs to be stopped.uke:

Peace.

Rekks

I was thinking the same thing but most major contracts have been gutted from the glory days of 2003. It would be interesting to see all the majors take umbrage to this move.

 

[~~~^~~~]

I'm not in the least bit concerned that RAH is going to become some kind of powerhouse in the industry. We're talking about an RJ operator latching on to a very small and hardly profitable National airline. The new airline will face tremendous competition and if RAH were to in fact lose code share contracts they would be hard pressed to finance their new "Major" airline for long.

This is positioning, nothing else. A small Bus operator in DEN is hardly going to produce a "game changer" if you will.

I see several airlines now positioning like vultures watching the carcass of United Airlines. The only reason Virgin America exists is to try to push United over the edge so Branson can increase the viability of Virgin Blue across the Pacific.

If United fails, this is a game changer for Republic, which is the only game Bedford is playing. Also, if United fails, SkyWest is in a perilous situation. They would lose 40% of their revenue overnight and it would cost them more than a billion to build what Republic just got for a debt exchange and a little cash. Regardless, we can see that the US domestic market is going to remain extremely competitive and if any profits are to be made on the loss of United's lift, it will be on transoceanic routes where Delta, Virgin and others already have networks in place to enjoy the marginal revenue increase.

Ironically, I do not see this as the end for Frontier. Because Republic is about the only airline where the pilots have fought for good scope, Frontier is unlikely to be whipsawed against Republic. This is actually a lot better scenario for the pilots than if Frontier had bought Republic and ALPA's scope applied to the transaction.

Another point. ALPA argues that these RJ's can't be flown by majors because they simply are not profitable. Yet, we see an RJ operator buy up two distressed "majors" with their profits.

This could still be shot down at the Courthouse. The Bankruptcy Court has to sign off on this. WORST CASE SCENARIO would be a non union carrier like SkyWest comes knocking with a plant to operate Frontier as an alter ego (even if only to greenmail Republic). SECOND WORST CASE an ALPA carrier jumps into the fray and their crappy ALPA scope allows for Frontier to operate as an alter ego. We will see what happens.

United has great people and for them, I hate what I see in these tea leaves.

HEATHROW, England, June 22 (Reuters) - Virgin Atlantic [VA.UL] will take delivery of 10 new Airbus A330-300 aircraft between now and 2012, allowing it to expand while awaiting delivery of Boeing Co's (BA.N) troubled 787 Dreamliner.
The 25-year old airline, controlled by Richard Branson's Virgin Group, told Reuters ahead of an official announcement at Heathrow airport that the aircraft were worth $2.1 billion.
"This will help us with future growth, taking us to new destinations such as Beijing and Vancouver," Branson told a news conference on Monday. "We have had some good years and have accumulated some cash."....
Branson said conditions were so bad one or two big carriers may go bust and pleaded with governments worldwide not to bail them out and to allow younger airlines to take their place.
"Carriers with older planes, with a cost base out of control, should not necessarily last forever," he said. "As old trees come down, new saplings start growing."

 

[Lear70]

In order to do this, RAH would need to cut itself off from it's only revenue stream which is contract feed. Are you suggesting they will simply cease providing contract feed and over night start this "big" new airline. I just don't see it. Even if they did, the track record for such operations is hardly something to lose sleep over.

Why, EXACTLY, would RAH have to do this?

Explain to me WHY any other airline can cancel their ASA with RAH because RAH owns the controlling share of another, competing airline?

These regionals already provide feed to competing airlines within their own organization. Why would they suddenly have to STOP now? Unless you know something I don't about non-compete clauses in their ASA, I don't see anything that would require them to cease providing contract feed while simultaneously managing an already-existing major airline.