Saluki Dawg
Well-known member
- Joined
- Jan 16, 2002
- Posts
- 395
It's been known for weeks now that Bedford is getting rid of the Midwest brand and was expected to announce a new name for the combined Airline within the next few months. It is also known although not heavily advertised that BB purchased a large number of Slots at DCA and LGA from US in order for them to emerge from BK.
Now I know this is a long walk but try to stay with me. If you remember how BB got Midwest and Frontier, he had similar deals with both of these companies. Basically, don't worry about all the money we loaned you guys, just sell to us and we will forgive all that debt. All of a sudden, BB just bought himself two Airlines within months of each other without spending much of RAH's money. They kept their Airplanes flying and still kept their valuable Fee for Depature Business intact.
Now BB has a potential branding problem WRT which brand he decides to keep. If he keeps the Midwest brand, he runs the risk of alienating Frontiers passengers in Denver, if he keeps Frontier brand, the same thing potentially happens in Milwaukee. If he goes with Republic, he runs the risk of no one recognizing the brand from when Herman the Duck was flying the skies in the 70's and 80's. So what does BB do? He needs a nationally recognizable brand name. He also needs an Airline that is desparate to merge and grow, and I'm sure that he want's to protect all those E170's that currently have the Flag on their tail from being dumped by his biggest customer at their next earliest convenience.
Now how does all this come together potentially. Well, knowing Bedford, I think he will go to Parker and just have a friendly chat about all the "SYNERGIES" the NEW Airline would bring to the table. If that doesn't work, then I think he would just go for the more direct approach of demanding RAH's newly acquired slots back at DCA and LGA so that the NEW Republic Airways can start doing their own flying out of those markets. At that point, Parker with a gun to his head has no choice but to announce the MERGER not Sale or Acquisition to RAH.
All of a sudden Bedford has himself an Airline flying everything from E135's to A330's, with a pretty respectable Route Network in the lower 48 and access to Codesharing Globally through Star Alliance. He keeps nearly 2/3rd's of his lucrative Fee for Departure contracts in place with both United and the NEW US Airways, and he is able to whipsaw all of his work groups against each other to keep his labor costs down.
Now I'm not saying that this is going to happen, or that I want it to happen. I'm just posing a theory about what Bedford could potentially do if left to his own devices. Don't underestimate what this man is capable of. What he's been able to do so far has guys like Frank Lorenzo and Carl Icahn beaming with pride.
So what do you all think of this potential scenario?
Now I know this is a long walk but try to stay with me. If you remember how BB got Midwest and Frontier, he had similar deals with both of these companies. Basically, don't worry about all the money we loaned you guys, just sell to us and we will forgive all that debt. All of a sudden, BB just bought himself two Airlines within months of each other without spending much of RAH's money. They kept their Airplanes flying and still kept their valuable Fee for Depature Business intact.
Now BB has a potential branding problem WRT which brand he decides to keep. If he keeps the Midwest brand, he runs the risk of alienating Frontiers passengers in Denver, if he keeps Frontier brand, the same thing potentially happens in Milwaukee. If he goes with Republic, he runs the risk of no one recognizing the brand from when Herman the Duck was flying the skies in the 70's and 80's. So what does BB do? He needs a nationally recognizable brand name. He also needs an Airline that is desparate to merge and grow, and I'm sure that he want's to protect all those E170's that currently have the Flag on their tail from being dumped by his biggest customer at their next earliest convenience.
Now how does all this come together potentially. Well, knowing Bedford, I think he will go to Parker and just have a friendly chat about all the "SYNERGIES" the NEW Airline would bring to the table. If that doesn't work, then I think he would just go for the more direct approach of demanding RAH's newly acquired slots back at DCA and LGA so that the NEW Republic Airways can start doing their own flying out of those markets. At that point, Parker with a gun to his head has no choice but to announce the MERGER not Sale or Acquisition to RAH.
All of a sudden Bedford has himself an Airline flying everything from E135's to A330's, with a pretty respectable Route Network in the lower 48 and access to Codesharing Globally through Star Alliance. He keeps nearly 2/3rd's of his lucrative Fee for Departure contracts in place with both United and the NEW US Airways, and he is able to whipsaw all of his work groups against each other to keep his labor costs down.
Now I'm not saying that this is going to happen, or that I want it to happen. I'm just posing a theory about what Bedford could potentially do if left to his own devices. Don't underestimate what this man is capable of. What he's been able to do so far has guys like Frank Lorenzo and Carl Icahn beaming with pride.
So what do you all think of this potential scenario?
