RAH buys Midwest!!!

[lookin4better]

Thats just their point..... UAL/DAL are and will be " subsidising " Bedfords little dream of an airline and I am sure they dont like it.

Regardless of the certificate shuffle being performed..... they ( the airlines using RAH as feed ) can use any just cause they want to cancel the contracts.... and " subsidising " Rev Bedfords new airline ( competition for them ) seems like legal enough reason to cancel any current contrats. Just because he hides it under one certificate and funds it with someone elses money doesnt mean UAL and DAL cant cancel with cause.

If they have to pay a small penalty to starve their new competition..... Im sure its a small price to pay..... Bedford isnt the only one with " business smarts "

 

[lookin4better]

Expect to see the Majors cancel their feed agreement with RAH ala Indy Air...

Agreed.... the majors can use the excuse of not wanting to fund the little parasite of an airline, Bedford is starting. Doesnt matter of how he hides it in certificates..... EVEN if they have to pay a hefty fine... It will be worth every dime to them to cut off funding their compitition. I am sure the 5/6 certificates dont scare anyone.

 

[Indy319FA]

Just because he hides it under one certificate and funds it with someone elses money doesnt mean UAL and DAL cant cancel with cause.

This was settled long ago in the dispute RAH had with American and APA. APA was fining CHQ $30,000 a day when the 170s were on CHQs certificate. The fines ended the day the 170s went on the Shuttle certificate. Until the language in these contracts are changed, each certificate is seen contractually as a seperate airline. Even the FAA treats each one as a seperate airline.

If they have to pay a small penalty to starve their new competition

The penalty would not be small. To cancel a contract without proper cause would likely result in payment of the full terms of the contract. I.E Republic would be paid the full value of the contract, and be able to stick the airline that cancels the contract with the leases for aircraft that Republic no longer wants. I doubt any of the majors in their present financial condition can afford this, nor would their shareholders consider this to be a smart financial move. The best course to take would be to refuse to renew the contracts when they expire, or cancel them in bankruptcy if any majors return to bankruptcy court.

 

[JumpCaptain]

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.

Yea, he's arguably the smartest Airline CEO currently working, but will that be enough?

Questionable.

 

[GuppyWN]

So now all SWA has to do is to buy Republic.

Are you nucking futs?

Gup

 

[Propsync]

The points they are making though, is the other operators might not want to "subsidize" the Republic 190 operation. Which is in effect what they would be doing.

I think they do. The majors are really trying to go all RJ under 120 seats. It may take another round of CH. 13's to realize, but I bet they don't touch RP for the turnkey value of a fleet of 100 seaters. As soon as one breaks, Midwest is done and 190's or whatever else is lying around gets painted to a major color of your choice. The majors, like AA, don't have the money to replace 200 and some MD-80's. AA is not going to just give up, either. They will get scope. I also won't be shocked if VA and JB end up in this as well. Reminds me of Lorenzo's moves back in the 80's: growth thru debt.

 

[Flying the Line]

So if UAL, DAL, ect. cancel the contracts with RAH then UAL, DAL will be stuck with the lease payments on the EMB's? I bet big money that Skywest or others right now are writing training manuels, ect. Then UAL, DAL, ect. still has the feed and RAH is out of money makers.

 

[MINIME]

Thank you Capt. Obvious.....

You're welcome.

It should be Obvious to someone like you, with what appears to be plenty of time in this industry, that pilots have been known to suffer from brain shrinkage when "reward now-pay later" carrots are dangled in front of us. History does not lie.

Maybe it's apparent to everyone but myself, that RAH pilots will not be tempted by management to steamroll the minority pilots (Frontier). In the interest of the profession, ALL the RAH guys will automatically do the right thing and stand up to their management. Management will instantly cease and desist and do what's right for all the pilots. I'm not trying to belittle any pilot group here. Simply, too many times in the past human nature has prevailed, leaving us with some precarious positions.

You are correct, all this should be obvious. If it turns out that my rant is unfounded, I'll be glad to recant my opinions. But for now, history tells me to be afraid, very afraid.

 

[bvt1151]

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.

Bedford may have been good when pitted up against the likes of other regionals, but now he has a nice little problem in MKE and DEN called SWA. Bedford vs. SWA? I choose SWA.

The only thing keeping Frontier alive in DEN is their hometown status. Will that remain now that the hometown is IND? Add in to the mix that neither Midwest nor Frontier have been profitable for a very long time, and considering that nobody knows how the majors are going to respond to the announcements, Republic could find themselves with a bunch of planes and furloughs, and nowhere to fly.

Sounds like somebody got bored flying Saabs, then got bored flying ERJ's, then got bored flying EMB's. Bankruptcy is exciting, I suppose.

 

[contrail67]

Expect to see the Majors cancel their feed agreement with RAH ala Indy Air...

It will be interesting when a lawyer looks at this...I am sure there is the ability for the major airline to cancel the contract....let them cancel it. Get some mainline aircraft on those routes again!

Remember when Independence Air went up against United....They disappeared very quickly.