Southwest failing in Denver?

[scoreboardII]

jump, what actually pushed them into the pit was a crappy economy, not the lone action of any CC company.

 

[flyboyzz1]

UAL can't put up a bid. The deadline was Aug 3rd. The only players are WN and RAH

Don't think that is correct...kind of conflicting info in this article.







Monday, August 10, 2009, 7:46am MDT | Modified: Monday, August 10, 2009, 7:58am

Denver Business Journal

Monday is the deadline for potential buyers of Frontier Airlines to submit formal bids for the ailing Denver carrier -- and for any new suitor to join Republic Airways and Southwest Airlines at the table.

Indianapolis-based Republic Airways Holdings Inc. (NASDAQ: RJET) on June 22 offered $108.8 million for Frontier, which is operating under Chapter 11 bankruptcy protection, and that offer was accepted both by Frontier and the bankruptcy court.

But that deal was subject to whether or not additional offers were made -- and on July 30, Dallas-based Southwest Airlines Co. (NYSE: LUV) said it planned to submit a $113.6 million bid to buy Frontier by Monday's deadline.

There is a key difference between the two potential bids: Republic has said it would keep Frontier pretty much intact, other than possible layoffs and downsizing, and operate it under its own name. Southwest plans to eventually absorb the Denver airline, retire its Airbus fleet and drop its name.

"We see a strong fit between our company cultures, a mutual commitment to high quality customer service, and similar entrepreneurial roots," Southwest CEO Gary Kelly said last month.

Analysts say Southwest is eyeing Frontier as a way to enter the Denver market and compete more effectively with United Airlines, the No. 1 carrier at Denver International Airport. Currently, Frontier is No. 2; Southwest is No. 3.

Meanwhile, Republic -- a company mostly known previously as an operator of regional flights under other carrier's names -- appears to be in the market for promising, but struggling, regional carriers like Frontier. The day after it announced its Frontier deal, Republic said it was buying Midwest Airlines.

As for the possibility of additional bids, Frontier (OTC: FRNTQ) said last week it had not been approached by any additional interested parties -- and Aug. 3 was the deadline for informal bids by potential buyers.

Following Monday's deadline for formal bids, Frontier will conduct an auction starting Tuesday, where it and a group of investors will determine whether it will accept Republic’s offer or whether it will terminate it and accept what it considers a higher or better bid from another company.

About 80 Frontier workers and supporters rallied in downtown Denver Thursday, asking that their company not be absorbed or eliminated in a coming sale. Participants blew noisemakers and chanted “Save our tails” — a reference to the well-known animals on Frontier’s planes — as they started at the Denver City and County Building and then marched down the 16th Street Mall.

Also Thursday, Frontier reported its highest monthly passenger count since last August. July’s passenger total of 961,418 was the most carried by the airline in a month since 1.01 million rode Frontier jets in August 2008.

Still, the July total was down 10.5 percent from last July’s total of 1,073,624.

Frontier filed for bankruptcy protection in New York in April 2008.

 

[MILPILOT17]

Don't think that is correct...kind of conflicting info in this article.







Monday, August 10, 2009, 7:46am MDT | Modified: Monday, August 10, 2009, 7:58am

Denver Business Journal

Monday is the deadline for potential buyers of Frontier Airlines to submit formal bids for the ailing Denver carrier -- and for any new suitor to join Republic Airways and Southwest Airlines at the table.

Indianapolis-based Republic Airways Holdings Inc. (NASDAQ: RJET) on June 22 offered $108.8 million for Frontier, which is operating under Chapter 11 bankruptcy protection, and that offer was accepted both by Frontier and the bankruptcy court.

But that deal was subject to whether or not additional offers were made -- and on July 30, Dallas-based Southwest Airlines Co. (NYSE: LUV) said it planned to submit a $113.6 million bid to buy Frontier by Monday's deadline.

There is a key difference between the two potential bids: Republic has said it would keep Frontier pretty much intact, other than possible layoffs and downsizing, and operate it under its own name. Southwest plans to eventually absorb the Denver airline, retire its Airbus fleet and drop its name.

"We see a strong fit between our company cultures, a mutual commitment to high quality customer service, and similar entrepreneurial roots," Southwest CEO Gary Kelly said last month.

Analysts say Southwest is eyeing Frontier as a way to enter the Denver market and compete more effectively with United Airlines, the No. 1 carrier at Denver International Airport. Currently, Frontier is No. 2; Southwest is No. 3.

Meanwhile, Republic -- a company mostly known previously as an operator of regional flights under other carrier's names -- appears to be in the market for promising, but struggling, regional carriers like Frontier. The day after it announced its Frontier deal, Republic said it was buying Midwest Airlines.

As for the possibility of additional bids, Frontier (OTC: FRNTQ) said last week it had not been approached by any additional interested parties -- and Aug. 3 was the deadline for informal bids by potential buyers.

Following Monday's deadline for formal bids, Frontier will conduct an auction starting Tuesday, where it and a group of investors will determine whether it will accept Republic’s offer or whether it will terminate it and accept what it considers a higher or better bid from another company.

About 80 Frontier workers and supporters rallied in downtown Denver Thursday, asking that their company not be absorbed or eliminated in a coming sale. Participants blew noisemakers and chanted “Save our tails” — a reference to the well-known animals on Frontier’s planes — as they started at the Denver City and County Building and then marched down the 16th Street Mall.

Also Thursday, Frontier reported its highest monthly passenger count since last August. July’s passenger total of 961,418 was the most carried by the airline in a month since 1.01 million rode Frontier jets in August 2008.

Still, the July total was down 10.5 percent from last July’s total of 1,073,624.

Frontier filed for bankruptcy protection in New York in April 2008.

It is/was correct; the deadline for non-binding bids was 3 Aug and the binding bids were due today (10 Aug). Best of luck to all F9 employees!

 

[Midnight Flyer]

http://www.usatoday.com/travel/flights/blog.aspx

by Ben Mutzabaugh

it is common courtesy, not to mention avoids things like plagiarism, to quote where you cut and paste an article from, inflightboi175.

You sound like my 3rd period senior English teacher.

 

[firstthird]

sounds like you should have spent more time writing stuff and less time plagiarizing.

 

[canyonblue]

here is a question for you. if the credit card company that SWA uses decided to 'increase the holdback' overnight, do you think SWA would be in bankruptcy soon thereafter? how about jetblue or airtran or DAL?

I hear ya brother. This is about as bad as "It's a Wonderful Life" where Uncle Billy loses the Bank Deposit to Old Man Potter, and then the Bailey Savings and Loan is kaput. Things are worse than you think.

 

[contrail67]

I chuckle everytime I see the thread title... who is buying who again?

Has nothing to do with who is doing the buying...it has everything to do with SWA's performance....lack of...in Denver.

 

[bluefin]

UAL can't put up a bid. The deadline was Aug 3rd. The only players are WN and RAH

Money can always change a date, that is if you have money. UAL has none, that is why no bid from them.