Frontier Airlines

[johnsonrod]

There is some history between the management teams (an incestuous industry). Not speculating here, but it is true that Ben Baldanza, the CEO of Spirit, formerly worked for David Siegel, CEO of Frontier, while Siegel was commanding USAirways (before being merged with America West to stave off imminent liquidation and unemployment for thousands of pilots).

Again, no speculation. Who knows, maybe the two can work out a deal since they know each other quite well.... Having similar fleets is a starting point.

 

[fam62c]

I still can't see what Frontier has that is of significant enough value to make another airline want to buy it and pay for duplicate components (brand name, operating certificate, employees with years of service, facilities and equipment, etc.) that are not needed. Also, Frontier is not enough of a significant competitive threat to anyone else to warrant buying the company to eliminate a competitor.

I think we are looking at a private equity company or some other type of investment group that wants a whole airline or some type of deal where the airline is going to be parted out. If this were another airline like Spirit, JetBlue or VA this deal could have been done long ago at a lower price when the industry was weaker.

 

[Dart]

Interesting!!!

Spirit Airlines Announces Sale of Common Stock by Indigo
MIRAMAR, Fla., July 29, 2013 (GLOBE NEWSWIRE) -- Spirit Airlines, Inc. (Nasdaq:SAVE) announced today the public offering of 12,070,920 shares of common stock by certain existing stockholders affiliated with Indigo Partners LLC ("Indigo"). Upon completion of the offering, investment funds affiliated with Indigo will no longer own shares of common stock of Spirit Airlines. The company will not receive any proceeds from this offering. Barclays is acting as the sole underwriter for the offering.
The shares of common stock are being offered pursuant to the Company's existing shelf registration statement filed with the Securities and Exchange Commission (the "SEC") on July 31, 2012. A final prospectus supplement describing the terms of the offering will be filed with the SEC and, when available, may be obtained from the SEC's website at www.sec.gov or from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, Telephone (888) 603-5847 or by e-mailing [email protected].
In connection with the offering, the Company also announced that Messrs. William A. Franke and John R. Wilson have informed the Company that upon completion of the offering, they expect to resign as directors at the next board meeting, presently scheduled for August 7, 2013. Upon Mr. Franke's resignation, the Company's board intends to elect Mr. H. McIntyre Gardner, a director since 2010, as Chairman of the Board.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction

 

[i fly boxes]

There is some history between the management teams (an incestuous industry). Not speculating here, but it is true that Ben Baldanza, the CEO of Spirit, formerly worked for David Siegel, CEO of Frontier, while Siegel was commanding USAirways (before being merged with America West to stave off imminent liquidation and unemployment for thousands of pilots).

Again, no speculation. Who knows, maybe the two can work out a deal since they know each other quite well.... Having similar fleets is a starting point.

Don't forget about Ted Christie who is cfo at spirit and was at frontier before his two month stop at pinnacle.
It's going to be spirit or allegiant I think. Spirit to grow or allegiant to compete

 

[Toobdrvr]

Regarding ^^^^^, it has been said time and again, the new equity investor will NOT be another airline. Hopefully an entity with airline experience, but not an airline. I reserve my right to be proven wrong on this, but I' m fairly confident.

Yeah, like they did a few years back when they insisted that Lynx pilots take concessions along with the mainline folks, but only negotiated snapback provisions for themselves.

To keep the record straight, we were in no position to bargain concerning the Lynx pilots, a battle we lost during the formation of Lynx itself ( but that's a different story). All we did was require that ALL other employee groups participate in concessions if we were to participate. What else should we have done, borne the burden alone? As far as snap backs ( which I will be SHOCKED if that ever actually happens), we were only in a position to negotiate our own terms. The Lynx pilots were represented by another Union (TWU I think?), who had the responsibility for their group. All other F9 work groups participated in concessions. Was that our fault, too?

 

[SAABaroowski]

Dumb question, I am sure the answer is out there somewhere but if F9 is sold, or purchased by Indigo (which it looks like) wasn't there some kind of seniority integration issue? Or would it just stay status qou (RAH pilots in their list), And the F9 guys just stay F9 guys etc?

 

[Captain Morgan]

F9 guys stay F9 guys... Gals too! There's a little more to it but basically that's the gist.

 

[StaySeated]

Dumb question, I am sure the answer is out there somewhere but if F9 is sold, or purchased by Indigo (which it looks like) wasn't there some kind of seniority integration issue? Or would it just stay status qou (RAH pilots in their list), And the F9 guys just stay F9 guys etc?

I am pretty sure this will be a topic of yet another IBT lawsuit against the Frontier pilots (the IBT likes to pick and choose who they represent based upon whatever serves the IBT best). The Eischen Award provides more than one mechanism to unwind the SLI, but the real justification is actually a lot more simple and obvious. Regardless, it is probably going to be an interesting 2013-2014 for the Frontier pilots.

This separation isn't going to be Christmas morning full of gifts and eggnog. Even some of the best case scenarios include a healthy serving of suck.

 

[SAABaroowski]

Got it, wish you folks all the best. I would much rather have Indigo making decisions than Bedford

 

[StaySeated]

I would much rather have Indigo making decisions than Bedford

I think this is mostly true. Indigo doesn't really want to operate an airline as evidence by their experience with Spirit. They made an investment, achieved a return on that investment, and punched out.

We have been catching a pretty violent beat-down at Frontier since the spring of 2008. This separation is more than likely the first step towards an IPO and then another Merger. Again, no one really knows what is going to happen but when you review Indigo's history as well as the ULCC landscape you get a little insight into what is likely to happen.

Then again we could find out next month that the deal doesn't happen (less and less likely with today's Indigo/Spirit announcement as well as the delay in the RAH shareholder meeting next month).