When will Frontier Exit Bankruptcy?

[Fubijaakr]

Yep. Ask 400 Midwest pilots how the RAH deal works. Better polish up those resumes F9ers.

 

[FastJP4]

Sad day for what used to be a fantastic airline. Now what - A320 FO's at 23.00/hr? This industry is toast.

 

[Axel]

Supposedly no integration. F9 will remain totally fenced off while republic/chataqua/insert other republic WO's here begin to fly dozens of shiny new EMB 190's all of the country.

sigh...

RAH scope clause:

1.D. Scope
1. This Agreement covers the company, any subsidiary of the
company, the company’s parent, any subsidiary of the
company’s parent and any future airline certificate(s) created as
a subsidiary of the company or subsidiary of the company’s
parent.
2. Except as otherwise provided in this Agreement, all present and
future flying (including that international flying which originates
or terminates within the United States or its possessions) and all
charters, ferry flights (not including ferry flights of newlyacquired
aircraft prior to being placed in revenue service),
training flights, test flights, (except test flights assigned to
management), or other utilization of aircraft owned or leased by
the company, the company’s parent or any subsidiary of the
company or subsidiary of the company’s parent shall be
performed by pilots on the Chautauqua Airlines Pilots’ System
Seniority List in accordance with the terms and conditions of this
Agreement or any other applicable agreement between the
company, the company’s parent or any subsidiary of the
company’s parent and the International Brotherhood of
Teamsters, Airline Division.
3. The Company, Subsidiary of the Company, the Company’s
Parent or Subsidiary of the Parent shall not establish any new
airline (alter ego or otherwise) or acquire a controlling interest in
any carrier whether directly or through the Parent or another
Subsidiary of the Parent, and maintain it as a separate carrier.
A “Controlling Interest” or “Control” means the ownership of an
equity interest representing more than fifty percent (50%) of the
outstanding capital stock of an entity or voting securities
representing more than fifty percent (50%) of the total voting
power of outstanding securities then entitled to vote generally in
the election of such entity’s board of directors or other governing
body.
4. The Company will not transfer aircraft, or operating authority to
its Parent, a Subsidiary of the Parent, or to a Subsidiary of the
Company for the purpose of evading the terms of this
Agreement. The Company will also not establish a third party
leasing device to evade the terms of this agreement.

 

[Baronman]

You know a bad day is a 'comin at your airline when Brian Bedford is seen in the building.

 

[Superpilot92]

i see the mainline partners dropping chauttleublic asap and not supllimenting a direct competetor after this is done. Especially when they will be using the majors own cash to keep ticket prices low.

With SWA going into MKE and DEN i see this turning into Indy Air II unfortunatly. Especially once the F9 guys realize they may have to integrate with a regional.

 

[StaySeated]

RAH scope clause:

1.D. Scope
1. This Agreement covers the company, any subsidiary of the
company, the company’s parent, any subsidiary of the
company’s parent and any future airline certificate(s) created as
a subsidiary of the company or subsidiary of the company’s
parent.
2. Except as otherwise provided in this Agreement, all present and
future flying (including that international flying which originates
or terminates within the United States or its possessions) and all
charters, ferry flights (not including ferry flights of newlyacquired
aircraft prior to being placed in revenue service),
training flights, test flights, (except test flights assigned to
management), or other utilization of aircraft owned or leased by
the company, the company’s parent or any subsidiary of the
company or subsidiary of the company’s parent shall be
performed by pilots on the Chautauqua Airlines Pilots’ System
Seniority List in accordance with the terms and conditions of this
Agreement or any other applicable agreement between the
company, the company’s parent or any subsidiary of the
company’s parent and the International Brotherhood of
Teamsters, Airline Division.
3. The Company, Subsidiary of the Company, the Company’s
Parent or Subsidiary of the Parent shall not establish any new
airline (alter ego or otherwise) or acquire a controlling interest in
any carrier whether directly or through the Parent or another
Subsidiary of the Parent, and maintain it as a separate carrier.
A “Controlling Interest” or “Control” means the ownership of an
equity interest representing more than fifty percent (50%) of the
outstanding capital stock of an entity or voting securities
representing more than fifty percent (50%) of the total voting
power of outstanding securities then entitled to vote generally in
the election of such entity’s board of directors or other governing
body.
4. The Company will not transfer aircraft, or operating authority to
its Parent, a Subsidiary of the Parent, or to a Subsidiary of the
Company for the purpose of evading the terms of this
Agreement. The Company will also not establish a third party
leasing device to evade the terms of this agreement.

I am aware of the existence of that CBA language. I have a few questions about the language itself and the pilots working under that CBA.

Who is defined, in the CBA, as the company?
Who is defined, in the CBA, as the parent?

Will the Chataqua guys demand today that the F9 guys get integrated (forget about how the SLI will take place for now) or will they remain quiet until after the deal is done to raise their grievance?

I would be amazed if no one else threw a bid into this mix. If you look at what Republic is getting and the price that they are paying it is the deal of the century.

Republic buys F9 in the form of $108MM in exit financing.

Republic gets their $40 MM loan repaid immediately.

Republic gets 7-9% of their $150 MM unsecured claim ($10.5-$13.5)

Republic gets untold millions in from First Data that is currently being held as unrestricted cash due to F9's low cash balance sheet.

So for around $50 MM (108-40-10), republic just purchased a billion dollar a year organization. They could possible walk away from the "closing" with cash in their pocket if First Data gets thrown to the curb, which is the most likely scenario. First Data currently has over $150MM in F9 credit card hold back.

Nicely plaid.

 

[huncowboy]

i see the mainline partners dropping chauttleublic asap and not supllimenting a direct competetor

Like they can do that overnight right? No contracts to worry about, etc.

BB wanted to own a real airline. Now he did it. He had to make that move rather sooner than later because the regional jet flying is history especially 50 seats and less. RAH could have not hoped for more codeshare flying. I think this fall many regionals will face reduction in flying that will not come back next Spring. He had to make a move or else he could have watched his company shrink into a dot over the coming years. This guy is brilliant, unfortunately he is a menace to our industry.

Sorry for the F9 FOs. My guess is relative seniority at best which is a disaster. I still remember some of my former CAs at RAH who went on to F9. This is a sad and scary moment for all of us who have managed to move on from RAH.

 

[Axel]

I am aware of the existence of that CBA language. I have a few questions about the language itself and the pilots working under that CBA.

Who is defined, in the CBA, as the company?
Who is defined, in the CBA, as the parent?

L. Definitions used in Article 1
“Company” means Chautauqua Airlines, Inc. or any other Subsidiary of
the Parent or any future airline certificate created or acquired as a
Subsidiary of the Parent.
“Entity” means a natural person, corporation, association, partnership,
trust or any other form for conducting business.
“Parent” means Republic Airways Holdings, Inc. or any successor of the
Parent.
“Subsidiary” means any entity that is controlled by the Company or the
Parent as defined above, herein.

Will the Chataqua guys demand today that the F9 guys get integrated (forget about how the SLI will take place for now) or will they remain quiet until after the deal is done to raise their grievance?

Good question. The union representation is in some turmoil due to the trusteeship imposed by the IBT international on the Local 747. This will certainly test the mettle of the new leadership as well as the RAH pilot group.

 

[johnsonrod]

So would there now be a flow-up and flowback to Frontier from RAH and vice versa? What about the Lynx pilots? I would bet that a senior RAH E170 driver would love to get his hands on a Bus sidestick...

Oh boy... This is gonna get messy.... And no doubt UAL wouldn't want to work with a competitor out of DEN. Perhaps this indicates RAH has little confidence in UAL's ability to survive going forward and it wants to better control its own destiny...

 

[CrownandCoke]

any speculation on the future of Lynx?