SWAPA wants all FAPA Pilots

[airlinepilot]

Here is the web location:


http://www.reuters.com/article/companyNews/idUKN1054048220090810


Not much info....will be looking for that soon!

 

[airlinepilot]

SWA Binding Bid Info

Southwest Airlines has added a news release to its Investor Relations website.

Title: Southwest Airlines Submits Bid to Acquire Frontier Airlines in Bankruptcy Court Proceeding
Date: 8/10/2009 2:31:00 PM

For a complete listing of our news releases, please click here

--Low-Fare Carrier Submits Bid of More Than $170 million
DALLAS, Aug 10, 2009 /PRNewswire-FirstCall via COMTEX/ -- Southwest Airlines (NYSE: LUV) confirmed today that the carrier submitted its binding cash offer of more than $170 million to acquire Frontier Airlines, which will be sold at auction as part of Frontier's bankruptcy case. The bid was submitted to Frontier in accordance with the procedures established in the U.S. Bankruptcy Court for the Southern District of New York.
Over the next week, Southwest will discuss its offer with the various interested parties. The auction is expected to commence on Thursday, Aug. 13. Once the auction is concluded, the bankruptcy court must still approve the selection of the winning bidder. From there, the bid will undergo review by the United States Department of Justice, which is normal and customary when one airline is purchasing another.

At this point, it is premature for Southwest to release complete details of its offer, which may change during the auction process before a winning bid is approved by the bankruptcy court. The offer contemplates that Southwest acquire approximately 80 percent of Frontier's existing Airbus fleet, which translates into about 40 aircraft, plus all of Lynx. Initially, Frontier would operate its Airbus aircraft as it does today, with a planned retirement of the Airbus fleet and transition to Southwest's Boeing 737s over a period of approximately 24 months. Despite the initial reduction in the fleet, Southwest intends to maintain all existing markets, as well as add new nonstop routes from Denver that are not served by either Southwest or Frontier today.

"We believe our bid ultimately should be seen as the strongest offer by all interested parties, including Frontier, its creditors, Employees, and Customers," said Gary Kelly, Southwest's Chairman of the Board, President, and CEO. "Southwest is a financially stable Company, and through this acquisition, will continue to provide Denver its historically low fares into the future. Frontier is up for sale. The bankruptcy process will lead to change at Frontier in any scenario. Given Southwest's history and track record of running a successful airline, we believe that our bid is the best option on the table for Frontier, Southwest, and the traveling public. A successful acquisition of Frontier Airlines by Southwest will expand a network of legendary low fares to additional cities, add jobs into Southwest through growth, and strengthen low-fare competitive pressure in Denver and other cities."

To view a blog regarding the news, please visit: www.blogsouthwest.com/blog/southwest-airlines-ceo-gary-kelly-bid-frontier.

Frontier filed for bankruptcy court protection in April 2008. Southwest submitted its initial indication of interest to acquire Frontier Airlines on July 30, 2009, which gave the carrier an opportunity to engage with Frontier in the due diligence required to determine the scope of a binding proposal.

After 38 years of service, Southwest Airlines offers a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom. Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines even more convenient and simple. Southwest Airlines currently serves 66 cities in 33 states, and announced service to Boston Logan, which begins Aug. 16, 2009, and to Milwaukee, which begins Nov. 1, 2009. Southwest currently operates more than 3,300 flights a day and has more than 35,000 Employees systemwide.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements relate to the Company's interest in acquiring Frontier Airlines and the Company's operating plans and expectations related to the acquisition. These forward-looking statements are based on the Company's current information, intent, expectations, and projections and are not guarantees of future actions or performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the Company's ability to receive all necessary approvals, including any necessary governmental or regulatory approvals and the approval of the Company's Board of Directors; (ii) results of the Company's due diligence; (iii) changes to the Company's business plan and strategies; (iv) the Company's being named the winning bidder in the auction process in Frontier's bankruptcy proceeding and the Company's ability to obtain all necessary approvals for the acquisition in Frontier's bankruptcy proceeding, including approval by Frontier's creditors and the bankruptcy court of Frontier's plan of reorganization, (v) the Company's ability to timely and effectively prioritize its revenue and cost reduction initiatives; and (vi) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Therefore, the Company can give no assurance that any bid it submits to acquire Frontier will be successful or that any subsequent acquisition will be completed.

www.southwest.com

SOURCE Southwest Airlines

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[StaySeated]

Should we change the name of this thread to "SWA wants 80% of FAPA pilots"?

I wonder if the F9 BOD and the UCC will accept the elimination of virtually all of the administrative positions and the furlough of 20% of the flight crews?

That appears to be the $170 Million dollar question.

Personally, I would rather be furloughed and have recall rights to SWA then be owned by RAH.

But I don't have any say in the matter so I am just going to drink heavily watch from the sidelines!

 

[airlinepilot]

The good news for manning is that the new FAA rules with shorter crew rest and max duty (weekly and monthly) will require more pilots and FA's.

 

[Vegaspilot99]

Personally, I would rather be furloughed and have recall rights to SWA then be owned by RAH.

But I don't have any say in the matter so I am just going to drink heavily watch from the sidelines!

Bingo!

 

[FDJ2]

--Low-Fare Carrier Submits Bid of More Than $170 million
DALLAS, Aug 10, 2009 /PRNewswire-FirstCall via COMTEX/ -- Initially, Frontier would operate its Airbus aircraft as it does today, with a planned retirement of the Airbus fleet and transition to Southwest's Boeing 737s over a period of approximately 24 months.

It's always interesting to see small shifts in a proposal over time. When comparing the recent statement above with the original statement below, I noticed a small change as it pertains to F9 employees.

"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.

Looks like the idea of buying F9, dumping the employees, then rehiring them as needed isn't going over too well and SWA is changing it's tune in order to win the auction. Additionally, SWA is planning on maintaining all the markets and even growing some, which means that this acquisition shouldn't cost any F9 pilot jobs.

Hopefully a fair and equitable negotiated single seniority list can be achieved and arbitration avoided.

 

[En Mort Main]

"to start with, I'd say that most ex-Morris, now 15 year SWA captains, might feel differently. maybe they would have been better off staying with Morris (a 2 year old airline at the time) than coming to SWA. Some of them did sue and there were some hard feelings, but a reasonable observer could conclude that this M&A worked out pretty well for the guys getting acquired. so I take issue with your very first point which you present as self-evident. oh yes, and did you know how Morris got integrated? straight staple. -Firstthird"

So this was fair? Outcomes justify means?

" haven't seen much discussion from SWA pilots about what RAH should or shouldn't do with F9 should they acquire them. We can all look to what they did and are doing wiht Midwest as a recent and relevant lesson. 2/3s of Midwest pilots are on furlough while E170s and E190s fly around painted in Midwest colors, based in Midwest hubs, flown by RAH pilots. -firstthird"

As far as i understand it Midwest furloughed their own employees prior to RP purchasing them, similiar to ATA and WN. So should RP be blamed for Midwest failures as WN should be blamed for ATA's failures?

"the 'fair and equitable' has something to do with 'career expectations.' if, and I haven't seen it, but if someone is saying that a staple of F9 to RAH is unfair, it has to do with these concepts. F9 flies bigger metal for more money (even in bankruptcy) than RAH guys are currently flying. F9 could be argued to have better career expectations than RAH guys. but frankly, if RAH gets F9, it is no longer the concern of SWA pilots. they won't be SWAPA. -firstthird"

So bankruptcy and liquidation is better career expectations that a strong growing regional because the planes are bigger. ATA i guess had some awesome career expectations flying the LT1011 and 757's, wait nevermind their company was in Bankruptcy.

"If RAH bought DAL through some big leveraged buyout, are you proposing that DAL should be stapled? what if DAL bought RAH? career expectations is what you are missing in your analysis. it is a pretty simple and accepted premise of AGM discussions. not so simple to execute fairly but anyone familiar with the landscape of M&A wouldn't be asking such a blatantly self-serving and, pardon me for saying so, ignorant, question.-thirdfirst"

I'm not proposing anything just asking how people view "fairness." And the responses seem to be what i suspected. The belief that southwest is the greatest thing since slice bread and OMG not a regional.
When the reality is both WN and RP are strong companies with proven track records. Both airlines undercut competition to make money... One is praised for doing this WN... One is loathed RP. Just trying to find out why .....they have both screwed the legacies.

EN MORT MAIN

 

[Bally]

SAVE CJ!!! Amen Brother!!!

 

[waveflyer]

When the reality is both WN and RP are strong companies with proven track records. Both airlines undercut competition to make money... One is praised for doing this WN... One is loathed RP. Just trying to find out why .....they have both screwed the legacies.

EN MORT MAIN

this can't be understated- one carrier provides a good paycheck, fantastic benefits, great quality of life and schedules, and compete by working harder and being more efficient- every pay decrease to get a foothold in the industry has been rewarded and promises kept.

The other has a MUCH different purpose and existence.

If it's a mystery to you why pilots view these companies in such a different light- Thats pretty incredible

 

[Richard Gozinya]

this can't be understated- one carrier provides a good paycheck, fantastic benefits, great quality of life and schedules, and compete by working harder and being more efficient- every pay decrease to get a foothold in the industry has been rewarded and promises kept.

The other has a MUCH different purpose and existence.

If it's a mystery to you why pilots view these companies in such a different light- Thats pretty incredible

All of this seems to be just completely glossed over/overlooked/disregarded/ignored, but it does come down to money.......and the F9 guys are going to get a sh1t pot full of it at Willie Nelson, but yet they don't seem to want it.......AMAZING!!!!!!!!!!!!....................well, except maybe the 450 with applications in at SW, of course they don't count.


When the offer for employment from SW is forwarded to the pilot group at F9, do you think they'll vote it it? The answer is HELL YES!

Dick