RAH buys Midwest!!!

[airplane wizard]

Sad to see Midex go down the toilet. What a great airline they used to be.

 

[stall022]

Seems like all they did was buy TPG's interest in the company...or what’s left of it. TPG is a short term investing company; they invest money expecting a return in less then 2 years. RAH paid for some ground equipment, the Midwest brand, gates and slots that Delta/NW didn't want. Basically the Vultures had finished with the carcass and tossed it to RAH.

 

[Lear70]

Vultures.

Carcass.

I somewhat doubt that TPG made any money off buying a carrier and selling it at an almost $100 Million loss within that 2 years.

 

[lookin4better]

RAH pilots are high fiving each other now ( not exacly sure why--- they just get more planes to fly at disgusting wages for the rest of their careers. )

.... Bedford, is starting a new airline ( after all the RAH feed contracts are cancelled ) that will fail miserably.....Indy Air II....

How are the RAH pilots not taking jobs from other pilots?? The are replacing pilots with their HORRIBLE pay.... wow.... WOW!

I will be happy to see that place fail in a few years, thats for sure.

 

[CitationLover]

Vultures.

Carcass.

I somewhat doubt that TPG made any money off buying a carrier and selling it at an almost $100 Million loss within that 2 years.

That's chump change compared to what Washington Mutual cost them..........

 

[stall022]

I somewhat doubt that TPG made any money off buying a carrier and selling it at an almost $100 Million loss within that 2 years.

The true gain or loss will never be known. How much did TPG make by the sale of Midwest assets?

 

[Indy319FA]

.... Bedford, is starting a new airline ( after all the RAH feed contracts are cancelled ) that will fail miserably.....Indy Air II....

I will be happy to see that place fail in a few years, thats for sure.

Having worked at both places, the simliarity ends with the fact that both of these are regional airlines. Love him or hate him, Bedford has been smarter than Kerry Skeen in setting this up. Bedford will be able to keep his revenue flow while building his new airline because of the multiple certificates. Republic's mainline partners can cancel the contracts, but it will cost a lot of money and they will be stuck with the aircraft Bedford doesn't want. Also he will be able to use the middle management expertise at Midwest and Frontier to build this new company.

As far as Bedford goes, I respect his ability as a hard as nuts businessman, but the way Republic treats its employees leaves a lot to be desired. However, if you think this is going to implode like Indy Air, you are going to be severely dissappointed. In terms of business smarts, Skeen and Moore couldn't come close to hanging with Bedford on one of his worst days.

 

[CitationLover]

The true gain or loss will never be known. How much did TPG make by the sale of Midwest assets?

The sale was pure book profit for TPG since they already wrote off the loss for Midwest.

 

[contrail67]

they obviously are trying to start a new airline... I mean right? Crazy stuff.

Going up against United and SWA in major markets= BK down the road for Republic.....

STUPID.

 

[lookin4better]

Going up against United and SWA in major markets= BK down the road for Republic.....

STUPID.

Yup...duuuuuumb.

 

[Indy319FA]

Going up against United and SWA in major markets= BK down the road for Republic.....

STUPID.

Who says these aircraft/bases have to stay where they are? Last time I checked you can move these things around. You guys are a trip. If you really think Bedford will leave these assets where they are going to lose money then you are foolish. Also, (and I say this with sadness in my heart) from a pure business perspective, UAL is getting weaker and weaker. If they go back into bankruptcy, then it will not be as pleasant as the last time around. SWA is a different matter, however.

My guess is he will slowly shift these aircraft and assets to areas that are more lucrative when the dust settles.

 

[contrail67]

and now Bedford has Republic in a HUGE amount of debt...I would not be too cheerful about this at all. Anytime a regional has done this in the past...and tried to go against a Major airline, the regional has been silenced.....and eliminated.

 

[MINIME]

I don't blame pilots for strategic business decisions CEOs make. The RAH pilots didn't write the check. I doubt Bedford asked them for their opinion.

That being said, they may now have been handed an opportunity to uphold this profession or to further contribute to its deterioration. How? By not getting wide-eyed over the prospect of flying bigger airframes at the expense of those currently flying them.

Sooner rather than later, most of you will have a chance to voice your opinions via a vote, as to how the compensation on larger airframes should be set. Oh yeah...it's coming. I hope that most of you, if not all of you, will vote to keep the payscales where they are or to actually improve them.

I hope you guys don't chase the carrots. Your decisions will have a huge impact on this industry. May I suggest you start by looking at the new Jetblue 190 and Airbus payscales.

 

[Lone Star]

RAH pilots are high fiving each other now ( not exacly sure why--- they just get more planes to fly at disgusting wages for the rest of their careers. )

.... Bedford, is starting a new airline ( after all the RAH feed contracts are cancelled ) that will fail miserably.....Indy Air II....

How are the RAH pilots not taking jobs from other pilots?? The are replacing pilots with their HORRIBLE pay.... wow.... WOW!

I will be happy to see that place fail in a few years, thats for sure.

I'll be sure and save this post for my 14 month old to read some day, and tell him that somebody wished his dad would not have a job so I couldn't put dinner on the table for him to eat. Real classy man. Nobody is over here high fiving. We didn't know anything about this until we saw it on the internet. So in your opinion we at RAH should all quit our jobs to make things right.

 

[Browntothebone]

I don't blame pilots for strategic business decisions CEOs make. The RAH pilots didn't write the check. I doubt Bedford asked them for their opinion.

That being said, they may now have been handed an opportunity to uphold this profession or to further contribute to its deterioration. How? By not getting wide-eyed over the prospect of flying bigger airframes at the expense of those currently flying them.

Sooner rather than later, most of you will have a chance to voice your opinions via a vote, as to how the compensation on larger airframes should be set. Oh yeah...it's coming. I hope that most of you, if not all of you, will vote to keep the payscales where they are or to actually improve them.

I hope you guys don't chase the carrots. Your decisions will have a huge impact on this industry. May I suggest you start by looking at the new Jetblue 190 and Airbus payscales.

Just to play devils advocate. If the RAH pilots were to get to fly the Airbus A-320s they bought from Frontier, irregardless of how much they got paid, just think what a huge leg up it would give them when the majors and legacies start to hire again, compared to the hordes of regional pilots with just RJ time, they would have RJ time PLUS time in a true mainline jet and would be much more competative when legacy hiring resumes.

 

[climbhappy]

6 mill in cash and a 25 million note to be coverted to commom at 10/share is a fire sale if there ever was one. basically they bought for 6 mil in cash and promise of future shareholder value...always subject to change. they're some shrewd ba$tards... yes they are.

 

[jmreii]

Just to play devils advocate. If the RAH pilots were to get to fly the Airbus A-320s they bought from Frontier, irregardless of how much they got paid, just think what a huge leg up it would give them when the majors and legacies start to hire again, compared to the hordes of regional pilots with just RJ time, they would have RJ time PLUS time in a true mainline jet and would be much more competative when legacy hiring resumes.

Just remember that some of the hiring airlines (pilots) will have awful long memories when it comes to hiring someone. You always remember who screwed you over. Example; Continental's scab situation goes back 26 or 27 years and the memories are like it was yesterday.

 

[Cornelius]

Indy319FA, can you quit posting because it is irritating to everybody.

 

[MINIME]

Just to play devils advocate. If the RAH pilots were to get to fly the Airbus A-320s they bought from Frontier, irregardless of how much they got paid, just think what a huge leg up it would give them when the majors and legacies start to hire again, compared to the hordes of regional pilots with just RJ time, they would have RJ time PLUS time in a true mainline jet and would be much more competative when legacy hiring resumes.

Well, if they do the smart thing with what they can control, payscales, QOL issues, many of them won't have to look for another job. Many of them will eventually flow up to a Major job. In that scenerio, fate will have been good to them. I can't blame them for that.

On the other hand, if they help bring Frontier payscales (and other Majors for that fact) and QOL to the Regional level, they won't have many places to look for a good job. This will become a wave that will be hard to control. Very few if any, new jobs will be created at a well paying Major or Legacy carrier. Whoever is at a Major, will be lucky to remain there. For those trying to get there, it may never happen. It's that simple.

 

[SWA/FO]

Guess the Midwest Airlines share holders are happy they voted down the Air Tran purchase. What was that for $16.50 a share? Something like 400 million?

WOW! I thought SWA was going after Midwest.