Southwest submits proposal to acquire Frontier Airlines

[Colonel Savage]

don't know if anyone posted about Lynx yet, but remember there's over 120 pilots there too

Well since you brought it up, and since SWAPA's contract prohibits domestic codeshare, what would happen to the Lynx operation and pilots under a fully integrated merger senario?

 

[shearedshaft]

SWAPA's contract doesn't prohibit domestic codeshare at all. The tentative agreement did, but the pilots voted that down. Now we're purchasing Frontier, I suspect that makes SL32 null and void due to the hull growth.

Right now, under the current contract, SWA can codeshare as much as it wants, domestically and internationally, near and far. The only restriction is that it has to grow by some number of hulls after January of this year, I can't remember how many that is.

 

[shootr]

Nothing discussed here would have been preventable in the failed TA. It would all have been allowed under the exception provisions. F9/Lynx were the reasons for these exceptions. Sheared, you don't even know what you voted yes on!

shootr

 

[shootr]

Oh...and SL32 is specific requiring a 5% growth of our B737 fleet. No mention of airbuses of an alter-ego airline.

 

[shearedshaft]

Oh...and SL32 is specific requiring a 5% growth of our B737 fleet. No mention of airbuses of an alter-ego airline.

Re-read it. Doesn't mention aircraft type. Just number of hulls.

 

[shearedshaft]

Nothing discussed here would have been preventable in the failed TA. It would all have been allowed under the exception provisions. F9/Lynx were the reasons for these exceptions. Sheared, you don't even know what you voted yes on!

shootr

It still amazes me that you guys didn't understand the TA.

The TA had a specific exclusion for what now appears to be Frontier, but it was phrased such that the company could buy them (and Lynx) and be restricted from growing either. So we could have the exact scenerio we have today, but there could be no growth of the Q400 or Airbus fleet to take over our flying. Also, there was to be no domestic codeshare, so they couldn't take over our routes.

Now under the current contract you guys are paying $1,000 per month to keep, there is no restriction on growing either Frontier or Lynx, there is no restriction on any codeshare, domestic or international and SL32 is null if we grow by a certain number of hulls, which again, I don't feel like looking up, since Frontier is bigger than that number. It does NOT state Boeings.

So by turning down the contract, you voted to allow SWA to grow a new subsidiary if they want to, to code share under our name.

We are certainly worse off with this purchase with the current contract in place than we would have been with the TA in place, because of the much stricter language regarding domestic codeshare and limiting the growth of RJ subsidiaries.

But then again, I actually read the whole contract. You? Apparently you listened to the lances. Who got to keep their paycheck while you write a check for $1,000 each month back to the company.

 

[OurMoney1]

Lnyx is screwed...

Desirable airplanes on the used global aircraft market, its gonna be a liquidation.....of course to pay for the Spring 2010 Spirit parties.

Hate to say it but I dont think you'll be included in this dance.

 

[Fubijaakr]

Maybe RAH will buy Lynx.

 

[shootr]

Maybe you should read it, Mister shaft...

"Barring circumstances that have a debilitating effect on the Company's operations, the Company agrees to grow by an annual average net gain of five percent (5%) in the B737 aircraft fleet size from December 31, 2005 through December 31, 2010."

A direct quote from SL32. We sure are debilitated making a bid on a major airline!

 

[njcapt]

To correct earlier post, this is an acquisition. The RLA details how acquisitions are handled. This is also nothing like ATA, as they had already filed Ch. 7.

OK, you need to stop saying this. ATA was in Chapter 11 while all the SWA involvement was going on. SWA trumped the AirTran bid during the initial process, then pulled strings with Boeing to kill the potential deal with America West. SWA got 100% of their investment paid off when Matlin Patterson provided exit financing. In return, SWA got a bunch of gates in MDW, eliminated competition in a dozen markets and got the benefit of codeshare to Hawaii out of four west coast cities.

Southwest gets what they want when their turf is threatened. Always. This is an opportunity to fend off an up and coming threat in Republic and to poke a stick in the eye of United in DEN.