Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Indigo Partners Fund Will Buy F9  
User currently offlinen7371f From United States of America, joined Jul 2008, 1690 posts, RR: 12
Posted (8 months 3 weeks 2 days 19 hours ago) and read 12528 times:
Support Airliners.net - become a First Class Member!

Indigo just put out a release several hours past its exclusivity deadline that it will go forward with the Frontier purchase. This means unless the gov't or some hurdle stops it, Indigo will own Frontier.

Per Indigo, agreements were reached with Barclay's regarding the line of credit and the credit card issued with F9. The FAPA, LLC deal was already announced.

Of course AFA did not reach a deal but Indigo says it is waiving that element as part of the purchase agreement. As someone who's dealt with and followed AFA closely for years, especially under NW, can't say I'm surprised.

http://finance.yahoo.com/news/indigo...pending-acquisition-033600622.html

22 replies: All unread, jump to last
 
User currently offlineJerseyguy From United States of America, joined Oct 2005, 1954 posts, RR: 0
Reply 1, posted (8 months 3 weeks 2 days 19 hours ago) and read 12473 times:
Support Airliners.net - become a First Class Member!

This is great news for Frontier. Without a good infusion of capital, moving forward would be difficult. Now they can focus on making their transition to full ULCC.


Frontier Early Returns Ascent Status| Webmaster of an unoffical TTN page see profile for details
User currently offlinesk736 From United Kingdom, joined Aug 2006, 510 posts, RR: 0
Reply 2, posted (8 months 3 weeks 2 days 15 hours ago) and read 11450 times:
Support Airliners.net - become a First Class Member!

Quoting n7371f (Thread starter):
agreements were reached with Barclay's regarding the line of credit and the credit card issued with F9

Wow, someone bought an airline with a Barclays credit card  


User currently onlineMWHCVT From United Kingdom, joined Oct 2008, 680 posts, RR: 0
Reply 3, posted (8 months 3 weeks 2 days 13 hours ago) and read 11174 times:

This might be a stupid question but how is an Indian company buying an American airline, how have they got round the foreign ownership rules?


Must think up a new one soon, slow moving brain trying to get into gear ;)
User currently offlinestarbucks From Netherlands, joined Feb 2013, 668 posts, RR: 6
Reply 4, posted (8 months 3 weeks 2 days 12 hours ago) and read 11077 times:

Quoting MWHCVT (Reply 5):
This might be a stupid question but how is an Indian company buying an American airline, how have they got round the foreign ownership rules?

I believe it's not Indigo airlines but Indigo Partners, which is a U.S. company... I did a quick google search, I didn't read that much into the company details, so if I'm wrong please correct me  



A350 logbook: http://docs.google.com/spreadsheet/pub?key=0AlVgPnmHLOovdFdzbVlyQzhYNDhCb1VFN1RkYXkwV3c&output=html
User currently onlineMWHCVT From United Kingdom, joined Oct 2008, 680 posts, RR: 0
Reply 5, posted (8 months 3 weeks 2 days 12 hours ago) and read 11016 times:

Quoting starbucks (Reply 6):

Ah yes that would make more sense  



Must think up a new one soon, slow moving brain trying to get into gear ;)
User currently offlineUnflug From Germany, joined Jan 2012, 447 posts, RR: 2
Reply 6, posted (8 months 3 weeks 2 days 12 hours ago) and read 10942 times:

Quoting MWHCVT (Reply 5):
This might be a stupid question but how is an Indian company buying an American airline, how have they got round the foreign ownership rules?

Don't think it is a stupid question, but the answer is in the link provided in the opening post:

About Indigo Partners LLC

Indigo Partners is a private equity firm established by W. A. Franke in 2003 to pursue acquisitions and strategic investments in the air transportation and related industries. The firm was a significant investor in Tiger Airways based in Singapore and Spirit Airlines based in Ft. Lauderdale, Florida, and maintains lead investments in Wizz Air Holdings, Plc, a ULCC with multiple bases in Central and Eastern Europe and Volaris Airlines, a ULCC based in Mexico City. Indigo Partners is headquartered in Phoenix, Arizona.


Quoting starbucks (Reply 6):
I believe it's not Indigo airlines but Indigo Partners, which is a U.S. company... I did a quick google search, I didn't read that much into the company details, so if I'm wrong please correct me

You are right, see above.

[Edited 2013-11-07 03:39:51]

User currently offlineinfiniti329 From United States of America, joined Jul 2012, 624 posts, RR: 0
Reply 7, posted (8 months 3 weeks 2 days 9 hours ago) and read 10270 times:

Will F9 pilots still get what was in the contract, in terms if F9 was accquired?

What are the Indigo's plans for F9 ?


User currently offlineFrontier14 From United States of America, joined Dec 2010, 186 posts, RR: 0
Reply 8, posted (8 months 3 weeks 2 days 8 hours ago) and read 9046 times:

Quoting infiniti329 (Reply 9):
What are the Indigo's plans for F9

Indigo Partners has publicly stated that they plan to grow the airline in an ULCC manner that diversifies F9 more from its current hub in DEN. To what degree and at what speed all this will occur is up for speculation.

Daniel Shurz's also gave us a hint when he recently said that TTN and ILG are the first steps in the diversification. He is looking at "other geographical areas" for similar opportunities.

The Indigo purchase may afford F9 to acquire some additional airframes sooner than later to accelerate to ULCC launch of F9.

Frontier 14


User currently offlineenilria From Canada, joined Feb 2008, 7037 posts, RR: 13
Reply 9, posted (8 months 3 weeks 2 days 8 hours ago) and read 8875 times:

Quoting Frontier14 (Reply 2):
Quoting Jerseyguy (Reply 1):
This is great news for Frontier

I will second that.

I agree, but let's be clear. This means the airline will probably grow which is great. It does not mean wages are going up or working conditions will be any better, probably the opposite. It also means that the F9 brand will most likely become identical with NK. All of those things are sad, but I do think that growth is more important than all of them.


User currently offlineWesternA318 From United States of America, joined Oct 2004, 5647 posts, RR: 24
Reply 10, posted (8 months 3 weeks 2 days 7 hours ago) and read 8799 times:

You know, I've long been the skeptic on Frontier (after years of being a fanboy), but I'm wondering if Franke himself will jam his stubby fingers in the F9 pie in day-to-day operations. If he does, and he runs them the same way he ran America West in the 90's, you can bet your bottom dollar F9 wont last long. Or maybe he's a Nextgen frank Lorenzo and bought F9 just to transfer assets to Spirit, or Tiger or Wizz...or even Volaris, who knows? Time will tell though.


Next trip: SLC-LAX-JFK-LAX-SLC on AA, gotta say goodbye to my beloved 762!
User currently offlineenilria From Canada, joined Feb 2008, 7037 posts, RR: 13
Reply 11, posted (8 months 3 weeks 2 days 5 hours ago) and read 7256 times:

Quoting WesternA318 (Reply 12):
You know, I've long been the skeptic on Frontier (after years of being a fanboy), but I'm wondering if Franke himself will jam his stubby fingers in the F9 pie in day-to-day operations. If he does, and he runs them the same way he ran America West in the 90's, you can bet your bottom dollar F9 wont last long. Or maybe he's a Nextgen frank Lorenzo and bought F9 just to transfer assets to Spirit, or Tiger or Wizz...or even Volaris, who knows? Time will tell though.

Judging from NK's financial success it's hard to make the case he will destroy F9.


User currently offlineBP1 From United States of America, joined Aug 2007, 593 posts, RR: 1
Reply 12, posted (8 months 3 weeks 2 days 4 hours ago) and read 6550 times:

Why so much hate towards Bill Franke? Bill's company has done amazing things with other carriers. The team at Indigo is exceptionally professional and makes keen business decisions. Having worked with Indigo recently on a transaction, I can assure you Bill and his team know what they want, listen to the alternatives, give companies and products a chance to improve their economic impact and then Indigo executes with the best option in the marketplace.

I understand change being difficult, but in looking at Spirit, Wizz and Tiger you need not look far to see the strategy and success behind Indigo's leadership.

Did America West have issues a long time ago? Sure; what company has not? But that was a long time ago, people change, people learn and grow from their mistakes and this is not the 1980's or early 1990's. Indigo would not have the financing for this transaction if they did not know what they are doing. Comparing Lorenzo to Franke is beyond unreasonable and shows the readers of this forum how uneducated your comments really are.

I expect to see a clear and very brand oriented streamlined approach with significant investment and focus in geographically strategic regions of the country. Congratulations to the team at Frontier for a clearer future.

[Edited 2013-11-07 10:57:46]


"First To Fly The A-380" / 26 October 2007 SYD-SIN Inaugural
User currently offlinemariner From New Zealand, joined Nov 2001, 25008 posts, RR: 85
Reply 13, posted (8 months 3 weeks 2 days 4 hours ago) and read 6495 times:
Support Airliners.net - become a First Class Member!

Quoting enilria (Reply 11):
It does not mean wages are going up or working conditions will be any better, probably the opposite.

The pilots seem happy.

I'd love to know the details of the deal that was struck with FAPAInvest - which is not a union, nor is it a union agreement - because the original deal had a putative value of about $39 million.

I assume that the next step (for the pilots) is to vote to leave the IBT and reform FAPA, the union, which would probably make the pilots even happier. I'm guessing the IBT knows this which is making it is making noise.

mariner

[Edited 2013-11-07 11:04:00]


aeternum nauta
User currently offlineAirFRNT From United States of America, joined Jul 2004, 2824 posts, RR: 42
Reply 14, posted (8 months 3 weeks 1 day 23 hours ago) and read 3798 times:

Quoting mariner (Reply 15):

I'd love to know the details of the deal that was struck with FAPAInvest - which is not a union, nor is it a union agreement - because the original deal had a putative value of about $39 million.

this.

As was mentioned, the deal pivot'd around what was in there. that being said, I think you might have had some F9 pilots pay to be free of IBT and RJET.

Not a positive working environment that company.


User currently offlineAirFRNT From United States of America, joined Jul 2004, 2824 posts, RR: 42
Reply 15, posted (8 months 3 weeks 1 day 23 hours ago) and read 3757 times:

Quoting mariner (Reply 15):

I assume that the next step (for the pilots) is to vote to leave the IBT and reform FAPA, the union, which would probably make the pilots even happier. I'm guessing the IBT knows this which is making it is making noise.

IBT is making a lot of noise - But it's hard to see how they have any leverage here. They can argue that the fence doesn't protect pilots in the case of a acquisition (pretty hard to argue given that F9 specific CBA is still in place), and they can argue that FAPAInvest doesn't have authority over it's own assets. Both would be pretty radical re-interpretation of labor law.

Not sure I can blame them. If I worked at Republic, I suspect that I would do whatever I could to get out of town too.


User currently offlinemariner From New Zealand, joined Nov 2001, 25008 posts, RR: 85
Reply 16, posted (8 months 3 weeks 1 day 23 hours ago) and read 3567 times:
Support Airliners.net - become a First Class Member!

Quoting AirFRNT (Reply 17):
IBT is making a lot of noise - But it's hard to see how they have any leverage here.

I thunk there is, or has been, some confusion by some about the difference between FAPA (the union ) FAPAInvest (not a union).

I find it easier to think of FAPAInvest as a benevolent society, but anyone can, and some probably will, disagree with me.

And since this is such a big day in the life of Frontier, it might be worth noting Bryan Bedford's comments about the (finally achieved) separation:

http://www.bizjournals.com/denver/ne...d-shaves-then-says-goodbye-to.html

"Bryan Bedford acknowledged Thursday that he shaved his “deal beard” one day after agreeing to sell Frontier Airlines to a new owner. And then the CEO of Republic Airways Holdings Inc. said little else about his soon-to-be-former subsidiary company during a quarterly earnings call.

During the earnings call, Bedford said that Frontier had exceeded Republic’s guidance with $29.8 million in income — the same amount as it made during the third quarter of 2012 despite the fact that it’s reduced the number of flights it’s made in order to increase profitability. He did not go into further detail about the finances of Republic’s “discontinued operations.”

“It’s a bittersweet situation,” Bedford said. “We really value our employees at Frontier and the turnaround they’ve accomplished in the last few years. But it’s a good chance for Frontier to get out on its own.”


He's copped a lot of flak over all this but as I've said before - if it wasn't for him there wouldn't be a Frontier.

mariner



aeternum nauta
User currently offlineGSPSPOT From United States of America, joined Sep 2003, 3009 posts, RR: 2
Reply 17, posted (8 months 3 weeks 1 day 23 hours ago) and read 3463 times:

So are we looking at something that will eventually resemble (and compete with) NK? Hope they do well at DFW in any event!


Finally made it to an airline mecca!
User currently offlinen7371f From United States of America, joined Jul 2008, 1690 posts, RR: 12
Reply 18, posted (8 months 3 weeks 1 day 20 hours ago) and read 2338 times:
Support Airliners.net - become a First Class Member!

Quoting BP1 (Reply 14):
Why so much hate towards Bill Franke? Bill's company has done amazing things with other carriers. The team at Indigo is exceptionally professional and makes keen business decisions. Having worked with Indigo recently on a transaction, I can assure you Bill and his team know what they want, listen to the alternatives, give companies and products a chance to improve their economic impact and then Indigo executes with the best option in the marketplace.

I understand change being difficult, but in looking at Spirit, Wizz and Tiger you need not look far to see the strategy and success behind Indigo's leadership.

Did America West have issues a long time ago? Sure; what company has not? But that was a long time ago, people change, people learn and grow from their mistakes and this is not the 1980's or early 1990's. Indigo would not have the financing for this transaction if they did not know what they are doing. Comparing Lorenzo to Franke is beyond unreasonable and shows the readers of this forum how uneducated your comments really are.

I expect to see a clear and very brand oriented streamlined approach with significant investment and focus in geographically strategic regions of the country. Congratulations to the team at Frontier for a clearer future.

Franke had a history of comments that were antagonistic toward employees back in his early days of running HP. Can't even paraphrase but they were in the ballpark of things like, "go get another job if you don't like it." Many employees at HP always felt that Franke was indifferent towards them and their well beings.


User currently offlinePlanesNTrains From United States of America, joined Feb 2005, 5449 posts, RR: 29
Reply 19, posted (8 months 3 weeks 1 day 17 hours ago) and read 1972 times:

Quoting mariner (Reply 16):
He's copped a lot of flak over all this but as I've said before - if it wasn't for him there wouldn't be a Frontier.

Well, in some respects it will be good to see the ties broken so that we can see what an independent, post-BK, mildly profitable Frontier can do next. I'm pretty happy for the folks at RAH too as it probably clouded the past several years in a manner that wasn't entirely healthy.

I was hopeful for what might have been, and I actually don't have a problem with the idea of linking a regional and a smaller mainline operation, but it just never came together right for them.

-Dave



Next Trip: SEA-ABQ-SEA on Alaska
User currently offlineWesternA318 From United States of America, joined Oct 2004, 5647 posts, RR: 24
Reply 20, posted (8 months 3 weeks 1 day 7 hours ago) and read 1745 times:

Quoting mariner (Reply 16):
He's copped a lot of flak over all this but as I've said before - if it wasn't for him there wouldn't be a Frontier.

Very true. And despite my misgivings on F9 in the past, I will give them a slight shot again later this month, so my 12 yr old daughter can say she flew on the animals. I'd like to see what Indigo's tutelage will do for them.

On a side note, I was listening to the Wall Street Journal Morning News today and one of their headlines for the sale said "Financially struggling Frontier came in tops for customer satisfaction on flights under 500 miles".



Next trip: SLC-LAX-JFK-LAX-SLC on AA, gotta say goodbye to my beloved 762!
User currently offlinemariner From New Zealand, joined Nov 2001, 25008 posts, RR: 85
Reply 21, posted (8 months 3 weeks 1 day 4 hours ago) and read 1633 times:
Support Airliners.net - become a First Class Member!

Quoting WesternA318 (Reply 20):
I'd like to see what Indigo's tutelage will do for them.

Well - nothing, yet.

The deal doesn't close until the end of the month and is still subject to regulatory approval.

In the meantime though:

http://www.latimes.com/travel/deals/...1106,0,2955931.story#axzz2k59PCLbo

"Frontier No. 1 in airline ranking"

mariner



aeternum nauta
User currently offline2175301 From United States of America, joined May 2007, 1036 posts, RR: 0
Reply 22, posted (8 months 2 weeks 6 days 10 hours ago) and read 1170 times:

I agree with that Frontier is one of the better Airlines for on time and customer service. My recent trip to Seattle and Back was wonderful.

I do hope that Frontier is not changed too much. I really enjoy the existing Frontier and fly them whenever I go west from Milwaukee.

Have a great day,


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Delta Will Buy A Refinery posted Mon Apr 30 2012 14:44:02 by southwest737500
Pascan Of YHU Will Buy 4 ATR 42 posted Sat Nov 19 2011 05:18:46 by yenne09
Alitalia Will Buy 20 ERJ For Its Regional Fleet posted Fri Dec 17 2010 01:37:12 by 777
MOL: Unlikely That Ryanair Will Buy Airbus Planes posted Tue Oct 19 2010 05:33:35 by vfw614
Who Will Buy MexicanaClick's 717s? posted Sat Aug 28 2010 12:56:35 by 1337Delta764
Tassili Will Buy 4 Boeings + 3 Embraers posted Mon Jul 6 2009 13:46:12 by FCKC
"New" Cameroon Al Will Buy 3 Boeings posted Fri Jun 26 2009 12:04:13 by FCKC
Paramount Aw Will Buy 15 Airbus Or Boeing posted Tue May 5 2009 13:58:33 by FCKC
Korean Air Will Buy 6 A330-200s posted Thu Feb 26 2009 02:17:05 by FCKC
Who Will Buy QR's Retired A340-600s? posted Mon Dec 1 2008 18:18:35 by 747400sp