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Republic Says "Potential Buyers" For Frontier  
User currently offlinestlgph From United States of America, joined Oct 2004, 9328 posts, RR: 25
Posted (2 years 6 months 2 weeks 3 days 4 hours ago) and read 14263 times:

http://www.businessweek.com/news/201...ave-surfaced-for-frontier-air.html

Headlines from today -

Republic hasn't decided whether to sell Frontier or spin it off
More job cuts possible
Republic under no time pressure for C-Series decision, still has concerns over viability of C-Series and lack sales.
Seabury, Evercore, or Barclays will be adviser in Frontier seprataion
Separation could be 6-12 months


Bedford will be making a number of media rounds tomorrow.

[Edited 2012-02-06 15:48:24]


Eternal darkness we all should dread. It's hard to party when you're dead.
118 replies: All unread, showing first 25:
 
User currently offlineRoseflyer From United States of America, joined Feb 2004, 9590 posts, RR: 52
Reply 1, posted (2 years 6 months 2 weeks 3 days 4 hours ago) and read 14183 times:

It will be interesting to see if anyone wants them. The airline has its hubs in horribly low yielding cities. Both DEN and MKE have horrible yields with a fare war between various low cost carriers. It is hard to see how they can make money with such horrible yields.

Their network might complement an airline like US Airways, but why would they want a low yielding airline in cities that are heavily competing against WN/FL. MCI, DEN and MKE are not constrained airports that have a whole lot to offer.

If they spin Frontier off, which is just a combination of other airlines that had already been in bankruptcy, I think we might end up seeing our first significant airline fold and ground its fleet in the US since the days of Frank Lorenzo.



If you have never designed an airplane part before, let the real designers do the work!
User currently offlinepoint2point From United States of America, joined Mar 2010, 2749 posts, RR: 1
Reply 2, posted (2 years 6 months 2 weeks 3 days 4 hours ago) and read 14159 times:

From the article...

“We’ve had a number of calls from potential interested parties, saying ‘When you’re ready to talk we want to talk with you,’”


Probably both UA and WN wanting to know how much $$$$ it will take so that they could just buy F9 and shut it down....

 


User currently offlineDeltaMD90 From United States of America, joined Apr 2008, 7873 posts, RR: 52
Reply 3, posted (2 years 6 months 2 weeks 3 days 4 hours ago) and read 14099 times:

I'm sure Delta is willing to buy them. It'll be a good fit after they buy AA and US   


Ironically I have never flown a Delta MD-90 :)
User currently offlineRoseflyer From United States of America, joined Feb 2004, 9590 posts, RR: 52
Reply 4, posted (2 years 6 months 2 weeks 3 days 4 hours ago) and read 14033 times:

Quoting point2point (Reply 2):

“We’ve had a number of calls from potential interested parties, saying ‘When you’re ready to talk we want to talk with you,’”


Probably both UA and WN wanting to know how much $$$$ it will take so that they could just buy F9 and shut it down....

Or it could be an investment firm or corporate raider trying to sell the airline off for its assets.



If you have never designed an airplane part before, let the real designers do the work!
User currently offlinemariner From New Zealand, joined Nov 2001, 25077 posts, RR: 85
Reply 5, posted (2 years 6 months 2 weeks 3 days 3 hours ago) and read 13943 times:
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Quoting point2point (Reply 2):
Probably both UA and WN wanting to know how much $$$$ it will take so that they could just buy F9 and shut it down....

I think it would have to be quite a lot of money to keep Republic happy, because, as BB has always said, they make their real money when the spun-off Frontier has an IPO.

mariner



aeternum nauta
User currently offlinestlgph From United States of America, joined Oct 2004, 9328 posts, RR: 25
Reply 6, posted (2 years 6 months 2 weeks 3 days 3 hours ago) and read 13845 times:

Quoting mariner (Reply 5):

i would think Republic would want to keep a divested interest in the carrier. Republic, as a regional service provider/supplier needs to see the airline industry grow, not shrink.



Eternal darkness we all should dread. It's hard to party when you're dead.
User currently offlineokie From United States of America, joined Jul 2003, 2999 posts, RR: 3
Reply 7, posted (2 years 6 months 2 weeks 3 days 3 hours ago) and read 13788 times:

Quoting point2point (Reply 2):
Probably both UA and WN wanting to know how much $$$$ it will take so that they could just buy F9 and shut it down....

It would probably be cheaper just to let F9 implode.
Fuel costs are seriously on the rise right now which will put serious pressure on F9.

Quoting point2point (Reply 2):
“We’ve had a number of calls from potential interested parties, saying ‘When you’re ready to talk we want to talk with you

Sounds more like he is trying to force someones hand if there is really a slightly interested party, right now Okie just does not see it.

Okie


User currently offlinesydscott From Australia, joined Oct 2003, 2965 posts, RR: 20
Reply 8, posted (2 years 6 months 2 weeks 3 days 3 hours ago) and read 13771 times:

Quoting point2point (Reply 2):
Probably both UA and WN wanting to know how much $$$$ it will take so that they could just buy F9 and shut it down....

That could be interesting because, and correct me if I'm wrong, but the 3 beyond perimetre slots that F9 uses on DEN-DCA would be up for grabs if UA or WN bought them. With 8 new ones coming in the FAA bill the competition for those 3 could be fierce!


User currently offlineaeroblogger From India, joined Dec 2011, 1363 posts, RR: 0
Reply 9, posted (2 years 6 months 2 weeks 3 days 3 hours ago) and read 13654 times:

I wouldn't be surprised if US buys out F9 just for the aircraft - they could then just move the DEN hub to PHX and strengthen their mountain west/west coast operation.


Airports 2012: IXE HYD DEL BLR BOM CCU KNU KTM BKK SIN ICN LAX BUR SFO PHX IAH ORD EWR PHL PVD BOS FRA MUC IST
User currently offlinesxf24 From United States of America, joined Aug 2007, 1259 posts, RR: 0
Reply 10, posted (2 years 6 months 2 weeks 3 days 3 hours ago) and read 13654 times:

Quoting point2point (Reply 2):
Probably both UA and WN wanting to know how much $$$$ it will take so that they could just buy F9 and shut it down....

I don't know if you were intending to be serious, but I actually think there's a good possibility UA could be interested in F9.

Quoting Roseflyer (Reply 4):

Or it could be an investment firm or corporate raider trying to sell the airline off for its assets.

F9 has no assets outside of some ground equipment and a frequent flier mailing list.

Quoting mariner (Reply 5):
I think it would have to be quite a lot of money to keep Republic happy, because, as BB has always said, they make their real money when the spun-off Frontier has an IPO.

There is no investor interest in F9 in its current incarnation.


User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3412 posts, RR: 0
Reply 11, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13541 times:

This is clearly republic desperately trying to get attention. republic seems desperate to cut ties w frontier before it takes down both companies. Frontier just has no routes that can really make money and no ways to turn things around

I am sure UA and both WN asked for a price even if it was after republic calling them a hundred times. That doesnt mean they would actually do it but to end the unsustainable Denver setup quicker has some value. Looking at how weak and out of options Frontier loooks they probably just wanted to see how low republic is willing to go. If anyones really considering it i bet its not an airline which will probably not be a happy ending.


User currently offlinemariner From New Zealand, joined Nov 2001, 25077 posts, RR: 85
Reply 12, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13524 times:
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Quoting sxf24 (Reply 10):
There is no investor interest in F9 in its current incarnation.

I am simply repeating what Mr. Bedford has said - and has told the staff - especially with regard to Republic's attitude to the spin-off, the IPO, and Republic being "patient investors."

Whether it pans out the way he has said is completely unknown to me, I can't predict the future.

mariner

[Edited 2012-02-06 17:29:21]


aeternum nauta
User currently offlineDesertAir From Mexico, joined Jan 2006, 1461 posts, RR: 0
Reply 13, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13469 times:

I hope the new buyer continues to fly as Frontier. This is one of the last historic regional names to exist, along with Alaska.
UA would buy Frontier to end competition.
AA has a dismal record...remember AirCal, Reno and TWA and has enough worries with restructuring in BK.
DL has the Salt Lake City hub very close.
US has not integrated US and AW pilots (if I am correct) and has the PHX hub.
Now Jet-Blue would be interesting to begin a western regional network to pressure WN and UA.
WN is very involved with the FL merger to spend energy on Frontier.


User currently offlinesxf24 From United States of America, joined Aug 2007, 1259 posts, RR: 0
Reply 14, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13467 times:

Quoting mariner (Reply 12):
I am simply repeating what Mr. Bedford has said - and has told the staff - especially with regard to Republic's attitude to the spin-off, the IPO, and Republic being "patient investors."

Whether it pans out the way he has said is completely unknown to me, I can't predict the future.

It would be helpful if you attribute quotes, rather than passing them off as your analysis.


User currently offlineEricR From United States of America, joined Jul 2010, 1904 posts, RR: 1
Reply 15, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13450 times:

Quoting sxf24 (Reply 10):
Quoting Roseflyer (Reply 4):

Or it could be an investment firm or corporate raider trying to sell the airline off for its assets.

F9 has no assets outside of some ground equipment and a frequent flier mailing list.


Their cookie recipe might be worth a few bucks.

[Edited 2012-02-06 17:44:42]

User currently offlinemariner From New Zealand, joined Nov 2001, 25077 posts, RR: 85
Reply 16, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13425 times:
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Quoting sxf24 (Reply 14):
It would be helpful if you attribute quotes, rather than passing them off as your analysis.

It would be equally helpful if you would.

Mr. Bedford - an officer of a publicly held corporation - says he has interest from investors. You - an anonymous internet poster - say he has not.

What a dilemma - who am I more likely to believe?

mariner



aeternum nauta
User currently offlineyellowtail From United States of America, joined Jun 2005, 6091 posts, RR: 2
Reply 17, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13428 times:

MIght VX we one of the interested parties. NK also has cash and might be looking for a western hub


When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlinesxf24 From United States of America, joined Aug 2007, 1259 posts, RR: 0
Reply 18, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13405 times:

Quoting mariner (Reply 16):
Mr. Bedford - an officer of a publicly held corporation - says he has interest from investors. You - an anonymous internet poster - say he has not.

Sorry, I should have been more clear: there is not currently an appetite in the market (aka investors) for an IPO of F9. I speak from my experience as a professional in the world of aviation finance.


User currently offlinebjorn14 From Norway, joined Feb 2010, 3411 posts, RR: 2
Reply 19, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13365 times:

Quoting Roseflyer (Reply 4):
to sell the airline off for its assets.
Quoting aeroblogger (Reply 9):
I wouldn't be surprised if US buys out F9 just for the aircraft
Quoting sxf24 (Reply 10):
F9 has no assets outside of some ground equipment and a frequent flier mailing list.

IIRC, F9 does own 3 planes but the rest are leased (a lease can be considered an asset) but you're right not much else.



"I want to know the voice of God the rest is just details" --A. Einstein
User currently offlinemariner From New Zealand, joined Nov 2001, 25077 posts, RR: 85
Reply 20, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13343 times:
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Quoting sxf24 (Reply 18):
Sorry, I should have been more clear: there is not currently an appetite in the market (aka investors) for an IPO of F9. I speak from my experience as a professional in the world of aviation finance.

Then perhaps I should have been more clear. Mr. Bedford laid out - to the staff - the process that he saw happening, with specific reference to the spin-off, the IPO and Republic being "patient (minority) investors."

He now says he has interest from private investors - in case you missed the article, it is linked in the OP and there is a longer version of it in the WSJ, which cannot, sadly, be linked. Or, if it can, I don't know how to bypass the subscription block.

mariner



aeternum nauta
User currently offlinebjorn14 From Norway, joined Feb 2010, 3411 posts, RR: 2
Reply 21, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13314 times:

.....and if in fact RAH did sign a deal for those 80 A319NEOs I'd want those slots.


"I want to know the voice of God the rest is just details" --A. Einstein
User currently offlineDesertAir From Mexico, joined Jan 2006, 1461 posts, RR: 0
Reply 22, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13296 times:

Quoting yellowtail (Reply 17):
MIght VX we one of the interested parties.

I didn´t think of them when writing the above post. I tend to doubt that Virgin would be interested. They are barely profitable, have a very distinct corporate and service culture, a rapid expansion does not seem to be a part of their plan.
But it is an interesting thought.


User currently offlinesxf24 From United States of America, joined Aug 2007, 1259 posts, RR: 0
Reply 23, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13238 times:

Quoting bjorn14 (Reply 19):
IIRC, F9 does own 3 planes but the rest are leased (a lease can be considered an asset) but you're right not much else.

Rents for A319s, and to a lesser extend A320s, have fallen sharply in the past year, so the existing leases are probably more of a liability than an asset. The owned planes are encumbered and I doubt there's much (if any) equity in them.

Quoting bjorn14 (Reply 21):
.....and if in fact RAH did sign a deal for those 80 A319NEOs I'd want those slots.

The slots are certainly an asset. Another one I forgot about is the Mexico route authorities.

All in all, I could imagine UA having an interest in F9 for about $80-100M plus assumption of liabilities.


User currently offlinesldispatcher From United States of America, joined Mar 2007, 402 posts, RR: 0
Reply 24, posted (2 years 6 months 2 weeks 3 days 2 hours ago) and read 13206 times:

Quoting sxf24 (Reply 10):
I don't know if you were intending to be serious, but I actually think there's a good possibility UA could be interested in F9.

I would think that makes the most sense for both parties. Republic would not want to alienate a client (UA) for regional operations. UA would gain planes equipped with LiveTV and commonality with existing fleet, slots, gates, and instant monopoly on several smaller routes serviced out of Denver.

That being said, I would hate to see the Animal depart. It's the real world and I will always believe that:
(a) Denver politicos who curried favor with WN and alienated F9 will never be held responsible
(b) Had oil remained reasonable, F9 would never have been in this vulnerable position; seems like it was just yesterday that cities were falling all over themselves to attract F9 service
(c) Had WN won the bidding for F9 the first time around, the planes, people, etc would have been long removed from the scene
(d) WN feared what F9 could have become and knew it had to strike......that's real world. They will most likely have succeeded, but their day is coming as well (i.e. spiraling overhead).
(e) Republic had every intention of making F9 succeed as part of their operation. AirTran did them no favors and wouldn't shock me if they were sent in to MKE to do the bidding of their ultimate bed partner.


25 mariner : There is this clue from the article: "The probability is “fairly low” for a sale of Frontier to a competing “ultra low-cost carrier” such as
26 bjorn14 : Yeah, maybe if the rumor is true that UA plans to dehub DEN they could slowly get rid of their legacy costs and have LCC -style ops in DEN. I know it
27 point2point : Somewhat semi-serious probably...... They would be the two foremost on my list..... and to either UA or WN, I'm sure that there is a $$$ value to bei
28 jamake1 : Furthermore, I don't foresee UA, WN, or any other carrier having an appetite for F9. Both UA and WN are chomping at the bit to see F9 exit the market
29 DesertAir : Didn´t UA try this on the West Coast, Shuttle by United to complete with WN ? Also, there was TED, that had a short life. I can´t see UA trying thi
30 jamake1 : and Delta Express...
31 etops1 : I really don't think any airline is interested in them. I think they will spin it off to the share holders and remain independent. After that down the
32 Post contains links LoneStarMike : Sometimes, if you do a search at news.google.com, you can find the link to the article, and when you click on the link from the google search results
33 Post contains images mariner : I have no trouble finding them that way and I've read the WSJ article in question. But if I try to link to them here, then something fries any quoted
34 sxf24 : I agree with most of your points - including the sentiment that it would be sad to see the Animals depart. The only thing I question is D: WN never f
35 jamake1 : I was under the impression that United was boosting its yields in DEN by reducing capacity. It seems as if that's been their ploy all across UCH's en
36 AS739BSI : That'll probably happen oh let me see, sounds like fairly soon? I agree with this analysis. I don't think B6 would buy them because of the environmen
37 Post contains images sxf24 : You can boost yields farther if you eliminate a competitor's worth of capacity in DEN.
38 Post contains images jamake1 : Agreed. But I don't think F9 needs UA's help in that regard...
39 F9Animal : A single name came out as a rumor. It made my stomach churn. Hint: He destroyed TWA.
40 BobLoblaw : VX has no money to buy F9 I cant believe UA would dehub DEN and there is no way DEN would become a UA LCC spinoff hub anyways. Pilots would never all
41 boilerla : Most of the posts above seem to imply it's a company (UA, WN, etc.) interested in F9. I would imagine, given both UA & WN have both just complicat
42 mariner : Certainly, Mr. Bedford has discussed the possibility of that and he has also frequently discussed Republic maintaining a minority holding - it is the
43 TWA772LR : I really think US should try for F9. There fleets complement each other and it would fill a huge hole in the US network. Then AA can be gutted out to
44 Post contains images YXwatcherMKE : It is Odd that you make this comment, now, the reason I say this is because when FL was making the bid for Midwest several people with ties to Midwes
45 etops1 : USAirways is not interested in a transaction with any carrier smaller than them. F9 brings no value to USAirways . It just will not happen .
46 smoot4208 : I agree. I am tired of of hearing people trying to rationalize how this would make sense. DEN offers nothing. They have PHX and *A at DEN. With US co
47 DeltaMD90 : lol it was a joke But on a serious note, I was thinking, what about AS? I know AS flies 737s while F9 flies 320s, but it is not the end of the world
48 sxf24 : Spirit has generated returns for its investors because it is profitably operating in markets that have limited competition and higher barriers to ent
49 klwright69 : An airline with an airline?? Been there done that, as others have said. It's fun to imagine different scenarios.. But realistically who really wants F
50 EricR : Historically - no. However, I think this is a mistake by the US team. If the big boys don't want to play ball with you, turn yourself into a big boy
51 Quartz : I agree its a lot more fun to speculate on which airline would be the best fit for Frontier, but it is likely a waste of time. BB is explicit in the W
52 lightsaber : I think B6 could make a profit acquiring F9, if it wasn't for the unions at F9. IMHO, that eliminates B6 from consideration. Lightsaber
53 Post contains links stlgph : Bedford on Bloomberg News Today. Radio - 2p to 225p Bloomberg Radio, www.bloomberg.com/radio, Sirius/Satellite Xm 113. TV - 235p Bloomberg TV network
54 Quartz : Great, thanks for posting this. Is the 2:00pm to 2:25pm eastern time?
55 stlgph : yes! sorry, whoops. I get their daily guest line up blast lists.
56 AS739BSI : I forgot the AS has a pilot base at LAX but I would say it is more of a focus city sized operation. They are better off focusing West Coast ad I see
57 mariner : The "generated returns" part is quote true. Which is why the restructure of Frontier had to happen. What happened at Spirit is still the template to
58 sxf24 : You're ignoring that fact that FLL-Latin America is largely what makes Spirit successful. F9 has no such niche and its prospects for long-term profit
59 mariner : I'm not ignoring that at all, just as I am not ignoring Spirit's present expansion in domestic US. Similarly, I have not mentioned Frontier's present
60 sxf24 : Well, failing to incorporate the reason returns were achieved is a major failure of logic and demonstrates a significant shortfall in analytical capa
61 mariner : Why? I didn't say Frontier is "like Spirit" - I am not comparing the two business models. I used Spirit as the example of returns to private investor
62 sxf24 : No, but I dispute your attempts to compare Spirit and Frontier.
63 mariner : Re-read the posts - I was not comparing them. Once again, I used Spirit as the template of returns to private investors. I could have used several ot
64 stlgph : Some tid bits from the interview- * Most likely a private equity group will buy into Frontier, another airline is pretty much off the table * List of
65 Post contains images mariner : I'm not a betting man, but I am ready to lay some decent money that TPG is on that list. As here: mariner
66 southwest737500 : Who said that there buying US OR AA. That's ridiculous
67 Atrude777 : I will be sad to see that happen if indeed it is the direction F9 wants to go. F9 has a great product, and I love the 3 Class Fare Buckets. Can the U
68 DeltaMD90 : It was a joke based on all the threads in civ av
69 Post contains images point2point : In regards to both UA and WN, I'm sure there has to be an immediate value to either or both them for F9, just so that they can make F9 go away, and a
70 mariner : I just listen to BB and hear what he says. And since it is playing out almost exactly as he laid out months ago, I tend to believe him. I don't try t
71 Post contains images point2point : Key word.... .... maybe I needed to have used that more? But anyway, I'm still curious if anyone would know the answer to my question...... And of co
72 Post contains links KarlB737 : Well somebody else has: Courtesy: Associated Press Frontier Airlines Wants To Look More Like Spirit http://finance.yahoo.com/news/Fronti...wants-look
73 sxf24 : How can you use Spirit as a template when many of the critical components of Spirit's template don't apply to Frontier? I mean, everything you're say
74 stlgph : Yes. With less and less air carriers, the dominant airlines are simply going to just charge more.
75 mariner : Because you continue to miss the point. The template is what happened with the Spirit IPO (and 2PO) - and the Allegiant IPO and the CMGI (not an airl
76 BobLoblaw : Frontier can kiss their numerous corporate contracts in DEN good-bye if they end up gong the way of Spirit and Allegiant.
77 BobLoblaw : That doesnt make any sense and No it isnt legal
78 sxf24 : Mariner, if you think that investors will put up money for another Frontier IPO just because it is an IPO, you are truly naive.
79 CarsAir04 : One never knows what someone will do, no one on here can predict the future.
80 mariner : When have I said they will? I said that an IPO is the eventual intention, the "ideal scenario." At my age, I may not be around to see it. mariner[Edi
81 sldispatcher : Well said. I would even dare say that potential investors/from Republic's perspective, this is much less about the airline itself and more about how
82 Post contains images RWA380 : Why doesn't HA buy F9, start a DEN-HNL & DEN-OGG flight, then create it's own feed into DEN for it's Pacific operations?
83 sxf24 : At this point in time, there is very little interest within the capital markets to provide funding to Frontier. The business model and market positio
84 mariner : No, sir, I said that is the intention. mariner
85 Post contains images point2point : Okay, I'm puzzled a bit here? The last thing I want to do is appear picky, but double negatives can throw me a bit. And continuing forward here, of c
86 mariner : I wouldn't. Add $150 million to that and I might. But I don't think anyone is going to pay half a billion for Frontier. They didn't do it last time,
87 point2point : Okay....... Okay as well... but then as value for F9 is being reduced here, I would think that it would only make it more tempting and appealing for
88 Post contains images planesntrains : Man, you'd think Mariner was some punk kid who just stumbled across A.net while browsing the internet. If you don't understand what someone is trying
89 sxf24 : I don't understand the logic behind the poster's opinions. A poster's background is irrelevant if the current train of thought is not logical or fact
90 bjorn14 : Mariner and I may disagree about a lot of things regarding BB/RAH/F9 but he has been writing about F9's financial positions long before he was on A.n
91 sxf24 : I fail to see how an individual's posting history or frequency is relevant. We should focus on what is posted - not who is posting it.
92 BobLoblaw : It doesnt masker sense for UA and WN to get together to divide up F9. Why would they do that? And no it isnt legal to do something like that as it wo
93 CarsAir04 : and you say "very little interest", but doesn't say "no interest". As I said, no one here can predict the future and I say again, one never knows if
94 mariner : You haven't "understood the logic behind my opinions" for a very long time, since the Chapter 11 filing and then the auction. And since it is establi
95 ScottB : The essential point is that it would typically be illegal for two competitors in a given market (in this case, DEN) to collude regarding conduct with
96 Post contains links iceberg210 : Because it's collusion. http://blackslawdictionary.org/collusion/ For two companies to go in on a 'purchase' of a competitor, with the explicit purpo
97 Post contains images enilria : It's interesting that they haven't talked to anybody, but using telepathy they have deduced that G4 and NK aren't interested in F9. It seems to me th
98 mariner : Two separate issues. The FAPA agreement is not - and has never been - the reason for the separation, the fundamental decision. It remains the basis f
99 Post contains images point2point : Hmmmmmm.........? Hmmmmmm.........? Maybe we can say that BB has the intention of presentation as best he can (and I do believe that probably 98% of
100 enilria : Well, there are plenty of quarterly calls where he said MKE was "doing fine" and "performing to expectations" and then we find out it has been horrib
101 BobLoblaw : Prove it. There is no reason what so ever for US to talk with DL about splitting up AA when US can get ALL of AA themselves, where as DL cant. No rea
102 Post contains images point2point : This seems pretty set.... but one has to remember that not too long ago, WN offered $115M for F9. A value has already been set. If this offer were on
103 sxf24 : As someone who has been involved in supporting earnings calls and meetings with analysts, an individual who has difficulty accurately and consistentl
104 slcdeltarumd11 : First of all i really want Frontier to make it but from a southwest only buying them perspective The value of Frontier has to be less now to Southwes
105 mariner : I don't understand that. If you mean you want Southwest to buy Frontier, I can't see it happening. Partly because: It was a case of serious under-bid
106 slcdeltarumd11 : Not at all im saying they bid low before and would only want it again if were even more of a bargain. Southwest is smart and well managed they didn't
107 bobnwa : Why would US buy out F9 for the aircraft when it can just order any additional aircraft new themselves? I would seriously doubt that. and bet you hav
108 AirframeAS : Again, the last part is not true. We have discussed this to death before. If any F9 employees wanted to work for WN, they would have had to re-apply
109 Post contains images enilria : You aren't as funny as your namesake. DL has already said they have hired advisors to work on a deal with US and they have more people working on an
110 Post contains links mariner : CEO Kelly of Southwest has a slightly different take on it: http://blogs.westword.com/latestword...southwest_still_shopping_after.php "Kelly concedes
111 point2point : I don't see how anyone can disagree that there is value for F9 to both UA and WN, in that shutting it down will eliminate a major competitor in DEN, w
112 BobLoblaw : That depends on if US thinks Delta would win DOJ approval or not. If not, a bidding war is irrelevant. Again there is no reason what so ever for US t
113 ScottB : You forget one of the cardinal rules of business, and in fact, you allude to it in your statement; that rule being, "Ignore sunk costs." If RAH perfo
114 Post contains images point2point : I don't disagree with the rule here. All I'm really attempting to do is put a valuation on F9 from the RAH side. And I think that what they paid for
115 mariner : Since this is all your hypothesis, I won't argue - go for it - but I know a number of people who would disagree with that, at least as far as United
116 Post contains images point2point : Yes, thank you, pretty much stated that all along, and it's all that it is. But having as many facts in the present with that is also a preference. O
117 Post contains images point2point : Forgot to ask in my last post, and I'm curious here.... is it more? is it less? Just pure guess on my part, but...... more? I would really be curious
118 mariner : Yes. In the short term, RAH gives up "control" of Frontier. It may eventually give up all financial association with Frontier. But - I am not sure, f
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