Frontier DIP congrats

[lowecur]

The initial post made it sound as if this financing would save the airline, the problem is that the DIP financing guys will make a profit when Frontier gets shut down.

Let me know how that works? Giving them a commitment of $75M for DIP + $100M for 79% of the stock in the new private entity. That would be like shooting themselves in the foot.

imp:​

 

[Poahi]

... The $75 million commitment ...is a significant vote of confidence in ... business plan," "Industry data supports our conclusion that when given a choice, ... prefer Frontier over the competitive options. ... Although Frontier has been buffeted by ... certain other issues, "

Certain other issues? I guess the question is - will the $75 Million be enough to fund a turf war with WN? This is the classic David v. Goliath scenario. Hold on and good luck because WN is about to start buffeting a whole lot more....

 

[airlinepilot]

$75 Mil is a drop in the bucket these days. You have to wonder if the new private company is not going to sell the part(s) and save the rest for Spirit. 75M is very cheap for ownership and I wonder if you won't see other bidders. Sorta like the deal Air Tran tried to do with ATA. It's going to be interesting.

 

[eaglesview]

It is sad how many of you guys actually sound as though you are hoping fronteir goes away. That is pathetic. Hopefully all goes well and the tail stays. PS I am not a fronteir employee.

 

[Poahi]

It is sad how many of you guys actually sound as though you are hoping fronteir goes away. That is pathetic. Hopefully all goes well and the tail stays. PS I am not a fronteir employee.

You might direct your comment to the SWA Board of Directors....

 

[eaglesview]

You might direct you comment to the SWA Board of Directors....

Last I checked they didn't post here.

 

[Larcifer]

It is sad how many of you guys actually sound as though you are hoping fronteir goes away. That is pathetic. Hopefully all goes well and the tail stays. PS I am not a fronteir employee.

Unless you haven't figured it out yet we cannot all stay. Somebody has to go away in order for the rest to survive. Dog eat dog.

P.S. I am a F9 employee.

 

[hockeypilot44]

If Frontier makes it, it will be after more voluntary paycuts. Management will come back for more. They always do. Frontier will not be the same Frontier.

 

[TAWS]

We will not continue to lose $22 million per month. If that were the case nobody would give us DIP and expect anything in return. You will notice that over $10 million of the loss is from Republic which is now out of the equation.

Off the top of my head we have about $110 mil restricted cash another $100 mil or so unrestricted. Add to that $75 mil DIP plus another $100 mil equity purchase upon BK emergence. ALSO not included is the revenue gained from the sale of the remaining 9 of the original 11 airplanes offered for sale. Maybe another $100 mil or so but I have no idea on that one.

Cutting capacity by 17% will obviously hurt revenue but a closer look at the numbers going forward reveals a significant reduction in expenses, and therefore losses, and right now it's all about stopping the bleeding. Operating losses will be significantly lower going forward especially in the area of fuel expense (going into the fall). That won't show up in the next few months numbers.

Our CASM x-fuel should be about 5.5 cents. That's pretty low and much lower than SWA whose CASM with and without fuel is increasing dramatically. It would appear that our goal is to hang tough and stem the bleeding. We have numerous revenue enhancement initiatives beginning in the fall. We can hold our own against SWA with their present Denver growth strategy. If they begin to raise fares that's bonus for us.

As always the wildcard is fuel. If it comes down we're golden. If not...........

Where on the balance sheet does it say how much the revenue was from the Republic operation?

I only see operating expenses. Has the revenue side of the equation already been factored in?

 

[ClassG]

I have a ton of confidence writing this:

I know MANY who fly for Frontier. They would have given their first born to work for Frontier, and they would give their first born to save that company. Because they respect themselves, each other as a group, and the PEOPLE they work with. Once it's saved though, you can bet they'll DEMAND everything back.

Not exactly your airline "regulars" over there. They're a little dif'rent.....In a good way.

Keep fighting F9. Things are looking UP!

(As always, someone will have to say "No self-respecting pilot group would allow themselves to be talked into a pay cut." Here's one that may have resulted in real "goodwill" - at least enough to attract a serious investor.)

ClassG