So wait, SOUTHWEST MIGHT GET RJs???

[General Lee]

I said MIGHT......




After Acquiring Frontier, Republic Airways could be target for Southwest Airlines : Small Cap Stock Analysis : Small Cap Stocks and Penny Stocks For Big Returns - SmallCap Network

After Acquiring Frontier, Republic Airways could be target for Southwest Airlines

By Jonathan Yates
Published: May 12, 2011 4:38:11 AM PDT

Now that Republic Airways (NASDAQ: RJET) has acquired Frontier Airlines, it becomes an acquisition candidate for Southwest Airlines (NYSE: LUV). Following its tradition of expansion that is low in cost and high in effectiveness, Southwest Airlines bid $113.6 million for bankrupt Frontier Airlines when it went into an economic tailspin. But
Republic Jet bested Southwest Airlines, adding Frontier to its fleet.
In December 2008, Southwest Airlines bought the landing slots at LaGuardia Airport in New York City from ATA Airlines. Recently, Southwest Airlines fully assimilated AirTran into its company. Southwest Airlines is now the largest carrier in the country in terms of passengers flown. Southwest Airlines only uses the Boeing 737, which minimizes maintenance and upkeep costs. There is a very customer service oriented culture at Southwest Arlines with no change fees, free drinks and snacks, no baggage charges, and an easy to operate website with a generous frequent flyer program.
With the Great Recession dampening air travel and higher fuel costs, Republic Airways is trading near its year low. The present earnings per share figure is a loss of 44 cents. Income growth is down over 134.90 percent for Republic Airways. There is a very high percentage of institutional ownership. This ownership structure would like nothing more than to have their investment maximized in Republic Airways through an acquisition by a stronger partner, such as Southwest Airlines.
Southwest Airlines has long expanded on a strategy that acquires assets from failed airlines at a low cost. Delta Airlines has spent about $2.35 for every dollar of shareholder value acquired through mergers and acquisitions. For Southwest, Airlines, the tab has only been three cents. The recent purchase of assets from ATA Airlines and AirTran are two such examples.






Now that would be a FUN SLI. Go for ARBITRATION, it will be fair, and Redflyer will be an RJ FO if this all happens, while SWA F/O will dump lavs in Reno. BANK ON IT.




Bye Bye---General Lee

 

[boeingdriver213]

I am amazed at the knowledge and insight the media has about our industry. They absolutely have their finger on the pulse of the airline industry. I believe whatever they write without question. Just like every one on this website is spot on with their assesments of each others airline.....

 

[N1atEcon]

Not to worry FAPA would mess it up for the rest of them.

 

[StopNTSing]

I'm sure it's a typo. The author meant to write Skywest.

 

[shagadelic]

I doubt we would buy Republic. I could see them spinning off the old Frontier though, which Gary might be interested in. I'm also pretty sure the busses are less than 50 percent of Republic's assets....

 

[BoilerUP]

NEVER believe investment notes from "analysts"...especially those in the aviation sector.

 

[GuppyWN]

What part of buying Republic makes sense? They lost $22.5 million in the first quarter and fly for everyone that is our competition.

No thanks,
Gup

 

[HA25]

sounds like someone is trying to drive the stock price up briefly for a big dump.

 

[swaflyguy]

Never going to happen!!! SWA may cherry pick some assets if Republic starts looking for money and liquidates some of those assets. Secondly, the guy who wrote the article is an unknown anal-yst who probably pulled this out of his arse. When Frontier was on the chopping block, Gary Kelly got a look at the books and made Republic pay about 50mil more than they originally were going to pay. Now they are feeling the crunch. Who knows what will happen but SWA will never buy Republic. Its a losing business plan. Eventually they will lose the contracts with those they are competing with unless they get rid of their Airbus line or consolidate all the assets and become one stand alone carrier. I don't think the current business plan is viable long term. As far as RJ's here on property. Don't think so. Too expensive to operate. GK wants bigger planes, not smaller. They are going in a different direction.

 

[Jetjockey]

sounds like someone is trying to drive the stock price up briefly for a big dump.

Agreed. SWA management is shrewd. No part of that deal makes any fiscal sense for SWA. Just wait for the airline to fail, and pick up market share. Wishful thinking on the original writer's part. For me, I'm shorting RAH.