WTF is Republic doing??

propsarebest

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http://finance.yahoo.com/news/Republic-Airways-to-Serve-as-bw-3063615527.html?x=0&.v=1



Republic Airways to Serve as Equity Sponsor for Frontier's Exit from Bankruptcy

* Press Release
* Source: Republic Airways Holdings
* On Monday June 22, 2009, 5:30 pm EDT


INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings (NASDAQ/NM: RJET - News) announced today that it has agreed to be the equity sponsor of Frontier Airlines’ plan of reorganization. The plan, which is subject to bankruptcy court approval and various conditions, would allow Republic to purchase 100% of the equity in the reorganized company for $108.75 million.

If approved and completed, the plan will result in Frontier’s successful exit from Chapter 11, at which point it would become a wholly owned subsidiary of Republic Airways, alongside the other Republic operating companies: Chautauqua Airlines, Republic Airlines and Shuttle America.

“Thanks to the hard work of its employees, Frontier has made tremendous strides during its restructuring process, recently posting its sixth straight monthly operating profit despite challenging economic conditions,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “Adding Frontier to the Republic portfolio of operating companies is an opportunity for both companies to build on recent successes and strengthen the Republic organization for the benefit of all stakeholders.”

Frontier’s proposed plan of reorganization was filed today with the U.S. Bankruptcy Court for the Southern District of New York. Frontier has also filed a motion to approve the investment agreement with Republic, which is subject to higher and better proposals under a court-supervised auction. A hearing at which Frontier will seek court approval of the investment agreement and proposed auction procedures has been scheduled for July 13, 2009. Frontier currently expects to conclude the auction process and emerge from Chapter 11 during the fall of 2009.

The proposed plan of reorganization provides for general unsecured creditors to receive $28.75 million in cash. An additional $40 million of the sale proceeds would be applied as repayment of the outstanding DIP loan.
 
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avrorj-85

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Republic is becoming the 8000 pound gorilla of the regional world by the looks of it. Prepare to be assimilated...
 

9rj9

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Frontier pilots will never see the money they signed away now. Good lesson for everyone.
 

zawillif

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All the jokes about regionals flying A320s are coming true. Soon there will be FO's making $37 an hour to fly A320s across the country. But that doesn't matter I'm just here for the quick upgrade!
 

Fubijaakr

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Enough
You and everybody at Virgin, Allegiant, etc.
 

DiverDriver

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And Republic will now get a paycheck from United that it will use to compete with Frontier against United in DEN. Wonder how United likes that?
 

samballs

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I would say RP is getting out of the regional feed business
 

DoinTime

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And Republic will now get a paycheck from United that it will use to compete with Frontier against United in DEN. Wonder how United likes that?
I can't imagine that relationship will last long. Makes you wonder if they have these same intentions with Midwest or any other of the small LCCs out there. As mainline carriers start refusing to do business with them they can shift those fleets of large RJs into their own brand for expansion.
 

Cardinal

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Beggars can't be choosy and all.....But it had to be Republic. Couldn't be some anonymous equity org like Blackstone or Berkshire, oh no. It's the only regional in the world F9 recently pissed off.
 

CX880

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From what I see, RAH pilots will be flying A320s since they have to fly all RAH subsidiaries correct? And since RAH will own Frontier, they will probably force the pilots to join RAH under their pay rates. Am I reading correctly, I mean it's already happening to Midwest sort of.
 

StaySeated

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From what I see, RAH pilots will be flying A320s since they have to fly all RAH subsidiaries correct? And since RAH will own Frontier, they will probably force the pilots to join RAH under their pay rates. Am I reading correctly, I mean it's already happening to Midwest sort of.
How is it happening at Midwest? Are any 717's or MD80's being flown by RAH? NO. RAH is flying those routes with 190's. Is RAH going to replace 55+ airbuses with 190's?
 

BoilerUP

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From what I see, RAH pilots will be flying A320s since they have to fly all RAH subsidiaries correct? And since RAH will own Frontier, they will probably force the pilots to join RAH under their pay rates. Am I reading correctly, I mean it's already happening to Midwest sort of.
There is no payrate at RAH for aircraft over 99 seats.
 

BoilerUP

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For FOs there is......
You know, you're right.

Their FO payscale does say "For all jet types", but the biggest "jet type" mentioned in the 2003 CBA is up to 99 seats and even the dumbest of labor attorneys should be able to slam-dunk that grievance...
 

aircombat

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yeah it will be slam dunked to include aircraft with over 99 seats
 

CX880

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Exactly. I'd say about 40 for the FO and about 80 for the CA. YES!!!
 
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