RUMOR: Alaska to Buy Frontier!!

[YeOldeProp]

Dunno about the Frontier rumor...but maybe you heard they're planning on buying "Rainier Beer". If you're on a noisy flightline, the words may sound similar. And, from what I hear about Alaska folks having a good time, buying out the beer company makes sense (though it won't replace Alaskan Amber...). Just a thought as we wait for Alaska and a few others to start opening up their interviews...

 

[D-Bo]

I highly doubt that rumor. From hearing the CEO talk on several occassions I couldn't see Frontier consider that idea for even a second. Does Alaska even have the money to buy Frontier? Plus, the price tag would probably be heafty.

 

[crashpad]

'AlaskaFrontier' would be a great name, but it'll never fit on the side of the plane. (dr suess)

 

[becket]

Alaska could buy frontier several times over. I highly doubt they would however.

 

[Rhino]

flx757

Working in the training dept, what is the latest? Any good rumors to share with those of us waiting to start training with Alaska???

~Rhino

 

[av8instyle]

Rumors?

The sky is falling.

 

[Herk2Wrench]

Actually, if you look at the market caps of the companies, they are about the same (600 mil). most mergers go for about a 30% premium. I doubt Alaska could buy them even once over. If they were to bring Frontier costs up to their own, the value in Frontier would be gone. Now maybe Frontier could buy Alaska but...

 

[av8instyle]

I doubt Alaska could buy them even once over.

maybe Frontier could buy Alaska but...

Thanks...but no thanks.

 

[becket]

Alaska has enough cash on hand to cover their market cap plus 30%. Since mergers are most often deals with a combination of cash, assets, and stock. I assure you, Alaska could most handily cover their market cap over and again.

 

[flx757]

Re: flx757

Working in the training dept, what is the latest? Any good rumors to share with those of us waiting to start training with Alaska???

~Rhino

Rhino,

No rumors, good or bad. It's kind of quiet on the training front. I am currently going through the MD-80 program with 4 pilots who were displaced from the 737 in LAX to the MD-80 in SEA, and there is a 737 class going on as well with guys displaced from the MD-80 in LAX. At least that's the way I understand it. But, I'm still kind of new, and not really up to speed on the plans. I'm still trying to feel my way along and just get through my own training right now. But, if I hear something, I'll be sure and pass it along.