"Frontier Airlines, Inc. today announced that its board of directors has approved a plan of reorganization to form a Delaware holding company. The plan of reorganization provides that Frontier Airlines, Inc., a Colorado corporation, will become a wholly-owned subsidiary of Frontier Airlines Holdings, Inc., a Delaware corporation, and the current shareholders of Frontier Airlines will become stockholders of Frontier Airlines Holdings with the same number and percentage of shares of Frontier Airlines Holdings as they hold of Frontier Airlines prior to the reorganization."
It's an entirely different kind of flying; all together.
Wikipedia does a good job of summarizing why Delaware is popular as a "state of incorporation:"
"Delaware is well known as a corporate haven, and many major corporations are chartered in Delaware. Critics of the predominance of Delaware corporate law believe that its laws and courts are excessively friendly to corporations. Proponents point out that many states' laws are more friendly to corporations than Delaware's, especially in offering protection from hostile takeovers; they believe that Delaware's popularity has other reasons, such as the fact that, because of the large number of major corporations chartered in Delaware, the courts in that state are more experienced in the application of corporate law than the courts of other states."
King From , joined Dec 1969, posts, RR:
Reply 7, posted (9 years 3 months 3 weeks 2 days 22 hours ago) and read 3360 times:
Interesting. F9 believes a holding structure could facilitate future expansion of its business by providing a more flexible structure for acquiring other businesses or entering into joint ventures while continuing to keep the operations and risks of its core airline business separate. It basically allows F9 to form future subsidiaries. A direct reincorporation in Delaware without the creation of a holding company structure would have required Frontier to merge into a new Delaware corporation, as a result of which Frontier could not continue as a Colorado corporation.
Type-Rated From , joined Dec 1969, posts, RR:
Reply 11, posted (9 years 3 months 3 weeks 2 days 19 hours ago) and read 3173 times:
I think this is a move on the part of Frontier that could be interpreted as just preparing for future expansion and the ability to easily grab whatever profitable opportunities may come their way. I would expect this out of any sucessful corporation.
GentFromAlaska From United States of America, joined Feb 2005, 3337 posts, RR: 2
Reply 12, posted (9 years 3 months 3 weeks 2 days 18 hours ago) and read 3109 times:
I think we only need to look at Alaska Air Group (AAG) as a economy of scale model. AAG is of course the holding company or Alaska and Horizon Airlines.
This is the very reason Horizon and Frontier were able contract Frontier Jet Express, even though Alaska Airlines and Frontier are competitors
If I recall correctly, under the holding company each airline has there own CEO & CFO. I seem to recall the head honcho of the holding company carries the title of Chairman. Currently I think Bill Ayer is the top rung of both, the holding company and Alaska Airlines.
I wonder if we might see Sam Addoms return to a role in the holding company?
Man can be taken from Alaska. Alaska can never be taken from the man.
N1120A From United States of America, joined Dec 2003, 27529 posts, RR: 74
Reply 13, posted (9 years 3 months 3 weeks 2 days 16 hours ago) and read 3028 times:
Quoting Mariner (Reply 5): Does UAL Corp (also a holding company) hold others - Avolar, maybe?
Avolar doesn't exist anymore IIRC. UAL Corp used to be a larger company (remember Allegis?) and owned things like Hertz and Westin Hotels as well as United. Now it is pretty much United Air Lines and United Services.
BTW, more than anything, the reasons companies register in Delaware is the easy dispensation of litigation by the judges in the state.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
WesternA318 From United States of America, joined Oct 2004, 5741 posts, RR: 23
Reply 15, posted (9 years 3 months 3 weeks 2 days 16 hours ago) and read 3015 times:
Does anyone remember when the original Frontier created a holding company and then went off it's rocker and started Frontier Horizon? That's what I'm afraid of. Potter said it's not going to happen like it did then, and I was skeptical, enough to resign as consultant to them. When I got back home and told my boss, he flipped, lol. Oh well, I have my reasons.
DLKAPA From , joined Dec 1969, posts, RR:
Reply 21, posted (9 years 3 months 3 weeks 2 days 15 hours ago) and read 2982 times:
Quoting Mariner (Reply 19): Which leaves the very ambivalent situation with Great Lakes. If there is an area that needs some work, it is that one.
Maybe they think they can pull Great Mistakes out of their hole. Could it be at all possible that this new holdings company purchases Great Mistakes and then axes the UA codeshare? That would seriously make me laugh...
Mariner From New Zealand, joined Nov 2001, 26416 posts, RR: 84
Reply 24, posted (9 years 3 months 3 weeks 2 days 15 hours ago) and read 2970 times:
Quoting N1120A (Reply 20): I had no idea they had spun off Mileage Plus and wasn't really counting United Vacations, but yeah, those too.
This is the list that was just posted on another board. I cannot vouch for its accuracy.
UAL LOYALTY SERVICES INC
MILEAGE PLUS HOLDINGS INC
MILEAGE PLUS MARKETING INC
MY POINTS.COM INC
MYPOINTS OFFLINE SERVICES INC
UAL COMPANY SERVICES INC
FOUR STAR LEASING INC
UAL BENEFITS MANAGEMENT INC
DOMICILE MANAGEMENT SERVICES INC
UNITED BIZJET HOLDINGS INC
BIZJET CHARTER INC
BIZJET FRACTIONAL INC
BIZJET SERVICES INC
UNITED AIR LINES INC
KION LEASING INC
PREMIER MEETING AND TRAVEL SERVICES INC
UNITED AVIATION FUELS CORPORATION
MILEAGE PLUS INC
UNITED GHS INC
UNITED COGEN INC
UNITED WORLDWIDE CORPORATION
Quoting DLKAPA (Reply 21): Could it be at all possible that this new holdings company purchases Great Mistakes and then axes the UA codeshare?
Oh, that's a whole other area. I mean, yes, they could - what would it cost, $10 million? Less?
But the only thing keeping Great Lakes flying are the EAS subsidies, and would they want to get into those?
And there would be awful issues of integration with the pilot seniority, etc.
Maybe it would be better to start over?
: At the moment yes, but Great Lakes is also Frontier's only intra-colorado feed, and half of those seats are filled to United passengers are they not?
: So Delaware has more than screen door factories? (Lisa Simpson) Why'd the businessman cross the road? Maryland and Virginia were too expensive.
: Yes, you're right. I was wrong. Agreed. And that's the area I think needs work. Theoretically, nothing, except that it is very "un-Frontier". Don't g
: Southeastern US perhaps? they have BWI, DCA, BNA, and ATL.. If you even look at their map you see a big gapping whole in the Southeastern section.. W
: Yeh, yeh, very funny. There are to be at least three US cities this year. I am assuming that one of those cities will be in the Carolinas - or that g
: Perhaps they will start a new company flying the E-jets? As said above, the Horizon deal already fills that need though so that is probably not likely
: Forming a holding company is a significant move and really would not be done for no reason as it does have additional cost (SEC reporting, tax implica