Southwest and Frontier?

[shagadelic]

We have some language in our new TA that allows RJ's if they are part of a purchased entity. This exception only applies to a particular transaction dealing with one domestic carrier that can't be named due to confidentiality. It appears we have someone we are buying, and the rumors are that it's Frontier. Anyone else hear anything??

 

[Whataburger]

Probably some large TurboProp language would have been added also.

 

[Whine Lover]

"...allows RJ's if they are part of a purchased entity."

You have already bought someone. ATA is a "purchased entity".

Sign that TA, let Gary and Co. slap some RJ's on that ATA certificate and off you go....Straight down the road to perdition that so many have traveled before ye.


YKW

 

[shagadelic]

This is the actual language from our "Questions and Answers":

Question:

During the term of this agreement, Southest Airlines will not enter into any domestic or trans-border codeshare agreement with a regional carrier or involving a regional carrier except as required as part of a transaction involving the acquisition of another carrier or its assets,...this is so open ended. The company could easily come up with 10 different ways to buy assets or companies to get around this cause.

Answer:

This exception refers to a specific transaction involving a single domestic carrier. The name of the carrier is not included in our contract due to confidentiality. If the company acquired another carrier, it would be covered by our Scope language.

 

[Fubijaakr]

You've got more chance of buying Alaska than Frontier. With that language, you'd get Horizon in the deal.

Why would SWA want an Airbus operation? That doesn't make sense.

 

[scoreboardII]

Because Beoing isn't playing well in the search for a 737 replacement.

I think it's Airtran.

Or it could be using the ATA cert as noted above, call up Mesa and off they go...

 

[catIIIc]

I bet it Skywest.

 

[iflyhigh]

To all:

Might find this of interest, though I don't think anything will come of it now.

Talk to a person who works for AMR in another capacity other than a pilot. We were talking about contract language and other industry news.

If seems this person was responsible for determing some of the costs to operate Eagle when they were up for sale by AMR. Funny thing this person said to me was one of the bidders was Southwest. I thought that was interesting.

Don't think SWA would of really bought Eagle, or that AMR would entertain the sale to them, but just interesting info to say the least.

 

[clippyrip]

During the term of this agreement, Southest Airlines will not enter into any domestic or trans-border codeshare agreement with a regional carrier or involving a regional carrier except as required as part of a transaction involving the acquisition of another carrier or its assets,...this is so open ended. The company could easily come up with 10 different ways to buy assets or companies to get around this cause.

I agree, you can drive a monster truck through that language. They way I read it, the "acquired carrier" could be a regional. It only says that a code share is not OK, but nothing about buying a regional in its entirety. Either way, they could defiantly acquire a company that has a regional.

Look what NWA did with Midwest. Basically turned them into a regional.

Lock and load fellas, you got incoming.

 

[xkuzme1]

...

Dude, its not that hard to figure out. Alaska... followed by Frontier airlines (-8's and CRJ's).

That would make a good mix.

X

 

[hockeypilot44]

I thought Delta was going to buy Alaska.

 

[Fubijaakr]

Air Tran? What about those 57 717s? Besides the fact that Air Tran doesn't have a wholly owned regional carrier.

And as far as Delta/Alaska goes...you never see the real buyer until the trigger is pulled. Example: When Reno Air got bought out, the RUMOR was that Alaska was going to buy them. In fact, American did the deed.

Yes, there is a hot rumor about Delta/Alaska. Which makes it even MORE probable that SWA could jump up out of the weeds and snatch it away from them. Besides, there's that sticky contract language again.

If (and that's a BIG IF) SWA does buy someone, Alaska is the logical candidate. Besides, a SWA buyout would be the BEST thing that could happen to Alaska pilots.

 

[RedDogC130]

until they have to re-interview for the job...It would not be a merger so I believe the whole integration would/could not be an issue if the company just purchases the assets and certificate...such as in ATA...there is the chance they would not have a job...I doubt that it would come to that but this is a strange business

 

[hou757]

They are buying Expressjet...

 

[RedDogC130]

here we go lets name every airline out there because the fact is nobody knows...and those that do I bet have signed a hefty confidentiality agrement...so good luck on finding a legit source

 

[Fubijaakr]

until they have to re-interview for the job...It would not be a merger so I believe the whole integration would/could not be an issue if the company just purchases the assets and certificate...such as in ATA...there is the chance they would not have a job...I doubt that it would come to that but this is a strange business

That's how they handled the Morris guys wasn't it?

 

[mhermann596]

At least they hired the Morris guys.

 

[starchkr]

We have RJ's???

Those perdy neat little Q's have been upgraded to RJ's now huh.

I hope it's not F9, for my sake and everyone else's on property i hope it's not. Nothing against you SWA guys and gals, but i would rather keep what we have going right now.

Go for Alaska!!!!

 

[StaySeated]

"keep what we have going now"

?

We are operating within Chapter 11, and need more then $100 million in financing in order to exit.

I can think of a lot more unfavorable outcomes then being acquired by SWA.

Best case scenario, Menke sells this place to investors and we continue to exist as F9. Throw in some growth and another hub and I start to get erect.

Worst case scenario, credit markets are terrible and we can't get a loan. Some entity wants our market share and waits until we go TU. Then they march in to DIA by shaving 3-4% of their capacity around the country and re-allocate those airframes in and out of Denver.

Yeah, I think an acquisition by SWA before we shut down falls somewhere in between the two end of the spectrum.

 

[GuppyWN]

I think I want my F9 hire date back.

Gup