Its on!!! (swa @ den)

[USMC319]

Are you serious?

They dropped their debtor in possesion. You're saying they didn't lose anything? Really?

No sour grapes at all. Enjoy Republic. Owned by a regional. I never thought I'd see the day.

Redflyer65,
They did NOT drop their DIP, nobody ever claimed that. In a nutshell; RAH filed a $260mm claim against F9 for dropping their RJ contract. Frontier later agreed a reduced claim of $150mm, which was accepted by the BK judge. RAH leveraged that claim to beat the SWA bid for F9. The beauty of it for Bedford was that it was money never spent, money never lost, money that didn't exist except on the books for unrealized profits of a contract that no longer existed. If SWA prevailed in winning Frontier, RAH would have collected about 12 cents on the dollar for their claim or about $18mm. Instead they got an airline that makes about that much every month in operating profits. No sh!t. What would you do? Plus the day they close the deal they will get 100% of their DIP financing paid back.

For the record, on October 1st, RAH will purchase 100% of the "new" shares of FAH. Frontier Airlines, Inc (a wholely owned FAH subsidiary) will remain an independent and stand-alone airline. Obviously RAH will be able to protect their investment and have influence of FAH as well as its other wholely owned subsidiaries that include the "Regional Airlines" you speak of. In any case there is expansion on the horizon. New bases. Aircraft on order. Furloughs expected to be back on property by summer. Improved CBA in place including raises. I would have been happy with a fair SWA integration but that wasn't on the table and many more furloughs appeared iminent, so most of us are happy with what we got. We'll see.

 

[airlinepilot]

Bedford didn't change his original bid, and he went into the bidding process not really knowing if there would be other players. Sounds like you are wrong.


Bye Bye--General Lee

They didn't change their original bid but they did waive a $150 million unsecured claim they had with Frontier. This was not part of the original deal. It was a last minute thing they did which meant they were actually giving the stock holders, etc more total return $$$$ than SWA

 

[vixin]

It was 450 current and active apps. To be active it must be updated every 6 months. Not the 750 previously mentioned.

 

[N1atEcon]

This thread is dumber than the UAL to not make it through winter thread.
What is up with this place lately? Is there a contest going on to see who can come up with the dumbest post?

 

[redflyer65]

Makes sense USMC. I hope it works out for you guys. I still have friends there and they thought the SWA thing would have been better, but everyone has their own take on it.

I'm most concerned that Bedford will just roll the F9 product into a regional airline with the associated pay rates. I would hate to see that happen and feel like every mainline job needs to be protected in this environment.

Good luck guys.

 

[NWaviator]

AAG will just roll over and let you guys come in to GEG. Although we will have 3-4 RJ's just sitting around they won't do a thing. Enjoy the new routes.

 

[Twin Daddy]

I love F9 and wish all the best.. except Genital Lee. Whoops, better run, got twelve more legs to fly before my 8 hour LBB overnight!

Bye Bye!

 

[Skyboy722]

Frontier Airlines, Inc (a wholely owned FAH subsidiary) will remain an independent and stand-alone airline.

You'll have a legal battle with IBT on this one, if not already, as integration is in thier contract.

In any case there is expansion on the horizon. New bases. Aircraft on order. Furloughs expected to be back on property by summer. Improved CBA in place including raises. I would have been happy with a fair SWA integration but that wasn't on the table and many more furloughs appeared iminent, so most of us are happy with what we got. We'll see.[/

QUOTE]

I still find it amazing that some of you expect to get raises out of Bedford. I wish you the best of luck, really, and I hope you prove me wrong. But I know Bedford better than that.

 

[USMC319]

QUOTE]
I still find it amazing that some of you expect to get raises out of Bedford. I wish you the best of luck, really, and I hope you prove me wrong. But I know Bedford better than that.[/QUOTE]

Be "amazed" as much as you like. We just passed a TA that extends our CBA 3 years and gives us raises above and beyond the pre-concessionary rate as well as job protections. Now, as to the future, anything can happen. We could be sold (50.1%), the future could be fantastic, the future could be sh!tty. Nobody knows, not even the soothsayers here on FI.

 

[Dan Roman]

QUOTE]


Be "amazed" as much as you like. We just passed a TA that extends our CBA 3 years and gives us raises above and beyond the pre-concessionary rate as well as job protections. Now, as to the future, anything can happen. We could be sold (50.1%), the future could be fantastic, the future could be sh!tty. Nobody knows, not even the soothsayers here on FI.

This looks like a pretty realistic perspective. I have nothing against SWA and it's a very good airline. But it seems to me some of their employees here got pretty offended because you guys didn't want to be tacked onto the bottom of their list. You guys coming out of BK will be a much healthier airline and a very strong competitor. I can't see people choosing SWA over F9 given equal fares.
Good luck