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KERA: Southwest CEO Says Labor Issue Could Be Frontier Deal Breaker (2009-08-12)
Southwest Airlines CEO Gary Kelly says one issue could break the deal Southwest has proposed for bankrupt Frontier Airlines, of Denver. A winning bidder could be announced this week. KERA's Bill Zeeble has more
Assuming Southwest's hundred-70 million dollar takeover bid for Frontier beats competitor Republic, Kelly says he'll stop the deal cold if Southwest and Frontier employees are in conflict.
Kelly: I won't go forward unless we have an agreement with their labor. And you see examples around the country where airlines have acquired other airlines and then left it up to unions over years to fight it out over a period of years. We're not going to do that.
When Fort Worth's American Airlines bought TWA, union groups from both carriers remained in conflict for a long time.
Kelly says Southwest employees and the corporate culture are too important to upend. He says he respects Frontier's workers but says if they end up working for Southwest, their pay would rise significantly.
Email Bill Zeeble
© Copyright 2009, KERA
Sorry boys you had a chance. FAPA just sold you out. RJ's are nice though. I'm sure Republic will take good care of you and your families, ask a Midway guy. And for the 450 F9 with apps in at WN, well, good luck with that.
Could it be that SWA may proceed with or without a negotiated prenup on the seniority list? With SWA looking for an extension it might just be that SWA needs this acquisition more than some think.
KERA: Southwest CEO Says Labor Issue Could Be Frontier Deal Breaker (2009-08-12)
Southwest Airlines CEO Gary Kelly says one issue could break the deal Southwest has proposed for bankrupt Frontier Airlines, of Denver. A winning bidder could be announced this week. KERA's Bill Zeeble has more
Assuming Southwest's hundred-70 million dollar takeover bid for Frontier beats competitor Republic, Kelly says he'll stop the deal cold if Southwest and Frontier employees are in conflict.
Kelly: I won't go forward unless we have an agreement with their labor. And you see examples around the country where airlines have acquired other airlines and then left it up to unions over years to fight it out over a period of years. We're not going to do that.
When Fort Worth's American Airlines bought TWA, union groups from both carriers remained in conflict for a long time.
Kelly says Southwest employees and the corporate culture are too important to upend. He says he respects Frontier's workers but says if they end up working for Southwest, their pay would rise significantly.
Email Bill Zeeble
© Copyright 2009, KERA
Sorry boys you had a chance. FAPA just sold you out. RJ's are nice though. I'm sure Republic will take good care of you and your families, ask a Midway guy. And for the 450 F9 with apps in at WN, well, good luck with that.