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United is a bunch of morons

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Profit had nothing to do with Frontier's bankruptcy. Frontier is in bankruptcy strictly because their credit card processing firm changed the amount (percentage) of credit card sales it withheld until a passengers travel was complete. Frontier was used to getting about 80% of that money immediately, and then the credit card firm began keeping all of the credit card money until travel was completed. Frontier basically needed to bridge that 4 or so month gap between ticket purchase and travel completed, and they did not have enough cash in reserve to cover that time, plus maintain levels that satisfied other financial obligations (aircraft leases and purchases, for example).

Frontier was able to hold their own throughout the gas crunch. Yes, they were losing money, but not enough so that they would have gone had to file bankruptcy. It was the move of the credit card firm that tipped the balance. Frontier would have emerged from all this in the same shape they are in now... profitable, with most of their aircraft still flying.


Profit had everything to do with the credit card company withholding more money. They can't just up and change a contract can they? It was in the contract with the credit card company and when cash reserves hit a certain level then a higher hold back came into effect in order to protect the credit card company.

It works like this, a pax give a bunch of money to the credit card company to fly on an airline. That money is not actually spent or owed to said airline until the pax actually flies. If the credit card company is happy the flight will really happen then they will only hold back a small percentage of total sales until the flights go. If the credit card company is affraid that the airline will soon go out of business (as evidenced by, say, dwindling cash reserves) then that credit card company doesn't feel so good giving the money to the airline as the pax will demand their money back if the airline goes out of business, thereby canceling the flight. The pax would be entitled to the money. If the CC company had already given the money to the now defunct airline where would that leave the CC company?

So you see, profit had EVERYTHING to do with the bankruptcy.
 
You have it all wrong... Frontier should buy United!!!!!! They basically have the same chance of surviving on their own.
 
Y'ual is beein too nice.

I works for a company what's got management way stoopider than Unitet.

Ifin you worked for US Airways you would know what I meen.

Cletus
 
pony up some coin from those spare parts $$ and buy frontier.

1. it will secure denver
2. increase ( airline's favorite phrase) market share
3. pay for itself within 2-3 years
4. alpa- alpa - easy doh integration
5. similar type aircraft operation
6. they've proved proftable in the past months/quarter


Am i the only one who sees this? If you can find a way to mortgage some freaking spare parts- find a way to not let your biggest competitor in DEN beat you on your home turf. do you need alrry the cable guy to say it any clearer: GET 'ER DONE




SKIPPY


If they are getting ready to merge...and be right sized for it...the last thing they need to do right now is get bigger...
 
Or CrossAir buying SwissAir. Oh wait...bad example.
 

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