Southwest submits proposal to acquire Frontier Airlines

[gt1900]

Well I guess you won't be seeing an offer from AAI like was rumored! AAI won't be getting into a bidding war with SWA. HOWEVER, I wouldn't be suprised to see this start a few more mergers. SWA is just getting too big for other airlines to sit on the sidelines. I'm thinking this will get AAI and ALA talking a little more! SWA is just getting too strong on the east coast, and now the west coast for airlines like AAI and ALA to sit and watch SWA's market share grow. Who knows, maybe AAI and ALA will throw in a joint bid for F9. Together they could take on SWA. Imagine an airline with a route structure with hubs in ATL, DEN, SEA, LAX, and ANC. Pretty good route structure in my mind! Mabye the best laid out route structure of any airline.

 

[Megalops]

I will gladly take a staple at SWA instead of the Repub deal any day.

 

[Muskycat]

From SWALife me thinks.

Southwest Airlines Submits Nonbinding Proposal to Acquire Frontier Airlines

On Thursday, July 30, Southwest Airlines submitted a nonbinding proposal to acquire Frontier Airlines in accordance with the bidding procedures in the bankruptcy court. We view this as an exciting opportunity for the Employees and Customers of both Southwest and Frontier. It represents an opportunity for Southwest to grow our Denver Customers; grow our revenues; and grow our profits. We must caution, however, that this is merely a preliminary step in the bidding process.

We must submit a binding proposal by August 10. If there is more than one qualified investor, and at this time Republic Airways has also submitted a bid, an auction will be held beginning August 11. Frontier will determine, in consultation with the unsecured creditors committee, which bid to accept and present to the bankruptcy court for approval.

Although our plans may vary as we work our way through this process, we wanted to share with you our present plan as we envision it. Frontier would continue to operate independently and separately for a period of time with its Airbus aircraft and personnel. We do not intend to integrate the Airbus into our Boeing 737 fleet. As we are able to retire Airbus aircraft, we will add Boeing 737 aircraft. Over time, Frontier Employees would be hired into Southwest as needed to support our fleet growth and expanded operations. There are many details to be worked through, but we are confident that the effort will be worthwhile. We are also confident that our bid, if successful, will boost low-fare competition and benefit consumers in Denver and other cities our expanded network will serve.

Even if our bid is accepted and approved by the bankruptcy court, our closing on this transaction will be subject to several contingencies. These will include the negotiation of acceptable labor agreements dealing with the interim period of separate operation and seniority; and the appropriate regulatory review. Absent the negotiation of these labor agreements, we will not go forward with this transaction. However, we are confident that the benefits of such a transaction for Employees of both Southwest and Frontier will become self-evident and that we will be able to obtain such agreements.

We hope that you are as excited as we are about the possibilities inherent in this opportunity. Stay tuned!

Hired into position? Sounds worse than being stapled.

 

[StaySeated]

This is all very preliminary, but the law states very clearly that you can not acquire an airline, fire all of the employees, and the offer to re-hire them.

Had F9 failed to obtain exit financing, and subsequently liquidated, SWA or anyone else could sweep in and purchase individual assets just as they did at ATA.

If no one else had bid for F9, you can bet that SWA would have been waiting to pounce on the assets. Now that F9 has at least one offer, SWA is executing plan B. By acquiring F9, SWA is preventing RAH from coming in and expanding F9 market share with E190's. SWA wants denver, and this is the only way they can get it due to the fact that F9 is not going to completely disappear.

Still a long way before SWA or anyone else owns us.

 

[General Lee]

So, you buy Frontier and you instantly get Dash-8-400s (Lynx), and you will get INTL routes (Mexico, Costa Rica). Can you guys handle all of that? What if your management wants more of those Dash-8-400s, and wants to put them on thinner routes (all of the LBB routes?). What will you guys do? Also, I don't think you can just do an asset sale---and with that Bond Ammendment, I don't think you can staple. Also, Frontier has the largest airplane of the two airlines (they do have some A320s---not only A319s and A318s)---so are those specific planes considered "super premium?"


Bye Bye--General Lee

 

[MALSR]

No merger here, SWA will sell off F9 over a few years and take their market share as they go. It will be like Continental and Eastern. After all, what's 113 million to SWA? 113M alone is easily worth the Denver market.

 

[General Lee]

Hired into position? Sounds worse than being stapled.

So, would there be a new interview to weed out the "crazies"? I don't think they did that when they bought Morris Air.....

Bye Bye--General Lee

 

[BILL LUMBERG]

As if history doesn't point to what will happen to the F9 people......Good Luck to them!!! Typical SWA, divide and conquer....no shock there!

As for Tanker Jerkhole.....guess you better update your stuff at www.Delta.com

"I have big connections at SWA, I don't ever want to fly a green plane!"
-Tanker Monkey-
2007

 

[Whine Lover]

"Over time, Frontier Employees would be hired into Southwest as needed to support our fleet growth and expanded operations."

Well, that's a fairly nebulous statement...Now, isn't it?


YKMKR

 

[fiel12]

To all junior SWA pilots:

Congratulations on being hired on with one of the most enviable companies in the airline industry. You are one of the few who have successfully interviewed and passed SWAs rigorous screening process. We are glad to have you here.

Now please step aside and let this F9 pilot take your already prolonged upgrade and or good schedule. We're quite certain you'll understand, and will not harbor any negative feelings.

Thanks, and keep that SWA culture alive!

 

[texman]

As an SWA pilot myself, I just want to say all of the employees are a class act and wish them well...... I hope this goes well.... (for everybody).

I agree

 

[dugan jones]

... Nothin like slippin in the back door.

I think you Southwest guys should be a little scared after hearing that!

 

[texman]

Hired into position? Sounds worse than being stapled.

True.

 

[ASADFW7]

Experts at work already. It will be nice to see Frontier apart of the SWA family.

 

[SennaP1]

Experts at work already. It will be nice to see Frontier apart of the SWA family.

Surely a slip of the tongue, err keyboard.

 

[StaySeated]

No merger here, SWA will sell off F9 over a few years and take their market share as they go. It will be like Continental and Eastern. After all, what's 113 million to SWA? 113M alone is easily worth the Denver market.

Unfortunately, this is a true possibility. They could fence off F9, and then just let us die on the vine. There is virtually no equity left in any of our aircraft, so anybody they sells our assets would break even at best. 113M for Denver, our slots into LGA, DCA, SNA ect, and 25% of denver market is a bargain. Again, I am obviously hoping that this is not the intent, but we shall see...

 

[DH2WN]

To all junior SWA pilots:

Congratulations on being hired on with one of the most enviable companies in the airline industry. You are one of the few who have successfully interviewed and passed SWAs rigorous screening process. We are glad to have you here.

Now please step aside and let this F9 pilot take your already prolonged upgrade and or good schedule. We're quite certain you'll understand, and will not harbor any negative feelings.

Thanks, and keep that SWA culture alive!

It's not going to go that way. Ask the ATA guys. They will draw down the airline over a few years offering interviews to Frontier employees AS NEEDED.

This isn't a merger it's a buyout.

 

[gearup5]

you guys are screwed..check back on AUG 12th

 

[NWaviator]

Did SWA just start to cure a small part of aviation cancer? SWA is much better then the cancer of RAH.

 

[FO 4 Life]

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.

ATA wasn't Chapter 7 until 3 years after SWA rode in on the white horse. Be careful what you wish for.