Frontier Airlines gets $40 million DIP Financing

[UND_Sioux]

Should say Republic takes other airlines money and gives to Frontier. Cooking the books yet again.

More like "other airlines give money to RAH for a product, and RAH can do whatever the he!! they want with their money".

 

[starchkr]

Ummmm...not to rain on everyone's parade, but this was announced many moons ago when the DIP financing deal was made last summer. We received a total of $70 million from RAH, the first $30 delivered on the spot and then this second $40 million to be delivered at a later date, apparently the date is now.

I do however wonder why we are taking it, all we have heard from the company was how we had no intention of taking the second part, and then also why the judge needs to approve it since he already did when the original DIP offer was accepted. Maybe we turned it down the first time and are now going back to take it this time...who knows.

 

[TAWS]

Who will be the largest creditor, when you exit BK?

Is Airbus owed money? (I haven't looked at any of the information). BTW, Midwest would have closed it's doors already were it not for the financing that RAH provided. Were they making a deal with the devil? Probably.... Is F9 making a similar deal? Probably......
Either way, if F9 took the only other DIP offer that existed last summer, they would most likely have been broken up by now. You still receive a paycheck don't you?

BB is no idiot and I'm sure there will be a significant payback.

 

[ROSWELL41]

Who will be the largest creditor, when you exit BK?

Is Airbus owed money? (I haven't looked at any of the information). BTW, Midwest would have closed it's doors already were it not for the financing that RAH provided. Were they making a deal with the devil? Probably.... Is F9 making a similar deal? Probably......
Either way, if F9 took the only other DIP offer that existed last summer, they would most likely have been broken up by now. You still receive a paycheck don't you?

BB is no idiot and I'm sure there will be a significant payback.

Will that payback involve E-190's flying alongside the Airbus fleet at F9?

 

[Horrido]

Best of luck to you guys...we really got the short end of things after Republic bought in at Midwest...I got furloughed with 12 years of seniority. Hope your final result goes much better...too many experienced folks losing there jobs to RJs these days. With the economy in the pooper its just that much worse.

 

[j41driver]

More like "other airlines give money to RAH for a product..."

What product is that?? We're in a service industry. We provide services, not products.

 

[TAWS]

Best of luck to you guys...we really got the short end of things after Republic bought in at Midwest...I got furloughed with 12 years of seniority. Hope your final result goes much better...too many experienced folks losing there jobs to RJs these days. With the economy in the pooper its just that much worse.

Many of our guys have alot of experience - we have many ex military fliers, who ten years ago would have gone right to UAL, DAL, etc...
It sucks that you got furloughed, with so much invested in your career, but the word that I've heard, is that Midwest is and has been for a number of years, an organizational nightmare.... Their mngt is a train wreck.
Our mngt is ruthless and doesn't give out loans for nothing. Should Midwest fail, you can bet that Republic will be first in line to take the choicest pickings e.g. LGA slots, etc..

 

[~~~^~~~]

This should be re-written to say, Republic takes money from US Air, Delta & United and uses that money to help keep their competitor alive, enabling the lowering of revenues.

I like Frontier, don't get me wrong. They are a great airline. I just don't think my employer should be bailing them out when we have our own kettle of fish to work on.

 

[Yuppyguppy]

You don't know what the he!! you are talking about. Without DIP (Debtor in Possession) financing, there is no exit from bankruptcy. Frontier goes bye-bye. RAH already flew under Frontier colors, and I doubt that it will happen again in the near future if ever. Since Republic has some cash, and there is no additional flying in the near future, maybe investing it in a good airline so it can stay running and maybe emerge from all of this with a product that can make some money in the future is a good thing. It seems like a win-win to me.

win-win...hmm just like midwest was a win win...FU!

 

[TAWS]

This should be re-written to say, Republic takes money from US Air, Delta & United and uses that money to help keep their competitor alive, enabling the lowering of revenues.

I like Frontier, don't get me wrong. They are a great airline. I just don't think my employer should be bailing them out when we have our own kettle of fish to work on.

How about your employer tells you how to spend YOUR money?
The first thing you're going to say is .......? That's right, "it's my money, I earned it and I'll do whatever I want with it!"

How is Republic any different? They are in the business of making money, period! Whether or not you or I agree with their methods, atleast they are proactive about creating opportunities for themselves, unlike some other airlines out there.