stlgph
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Republic Says "Potential Buyers" For Frontier

Mon Feb 06, 2012 11:43 pm

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]
if assumptions could fly, airliners.net would be the world's busiest airport
 
roseflyer
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RE: Republic Says "Potential Buyers" For Frontier

Mon Feb 06, 2012 11:58 pm

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!
 
point2point
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:03 am

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....

 
 
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DeltaMD90
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:09 am

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 :)
 
roseflyer
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:14 am

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!
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:28 am

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
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stlgph
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:45 am

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.
if assumptions could fly, airliners.net would be the world's busiest airport
 
Okie
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:50 am

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
 
Sydscott
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:53 am

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!
 
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:10 am

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.
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sxf24
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:11 am

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.
 
slcdeltarumd11
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:24 am

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.
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:27 am

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
 
DesertAir
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:30 am

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.
 
sxf24
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:30 am

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.
 
EricR
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:33 am

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]
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:35 am

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
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yellowtail
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:35 am

MIght VX we one of the interested parties. NK also has cash and might be looking for a western hub
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sxf24
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:37 am

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.
 
bjorn14
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:42 am

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
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:44 am

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
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bjorn14
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:46 am

.....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
 
DesertAir
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:48 am

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.
 
sxf24
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:54 am

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.
 
sldispatcher
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 1:57 am

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.
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:01 am

Quoting DesertAir (Reply 22):
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.

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 Allegiant Travel Co., Spirit Airlines Inc. or JetBlue Airways Corp., the CEO said."

I donlt think this is a game of airlines - I think it is a game of money.

My guess - and it is only a guess, sxf24, speculation - is that TPG may be one of the parties interested. Mr. Siegel, Frontier's new CEO, has worked both directly and indirectly for TPG for much of his career and sits on the board of RJET, in which TPG has shares.

mariner

[Edited 2012-02-06 18:03:03]
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bjorn14
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:03 am

Quoting sxf24 (Reply 23):
All in all, I could imagine UA having an interest in F9 for about $80-100M plus assumption of liabilities.

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's complicated
"I want to know the voice of God the rest is just details" --A. Einstein
 
point2point
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:06 am

Quoting sxf24 (Reply 10):
I don't know if you were intending to be serious

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 being able to shut down F9, wouldn't one think?
 
Jamake1
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:28 am

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.

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 place.
United's B747-400. "She's a a cruel lover."
 
DesertAir
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:35 am

Quoting bjorn14 (Reply 26):
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's complicated

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 this again at DEN.

All of the airlines within an airline were reintegrated back into the mainline operations.
Here are the experiments I can think of:
Shuttle by United
TED
Continental Lite
Metro Jet
Song
 
Jamake1
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:41 am

Quoting DesertAir (Reply 29):
Here are the experiments I can think of:
Shuttle by United
TED
Continental Lite
Metro Jet
Song

and Delta Express...
United's B747-400. "She's a a cruel lover."
 
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etops1
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:44 am

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 road , I believe F9's success is pretty questionable .Of course in this industry ,anything is possible .
 
LoneStarMike
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 2:59 am

Quoting mariner (Reply 20):
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.

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 page, you can read the whole thing

Try going here and then look for the headline "Republic hones its pitch to sell or spin off Frontier"

Click on that headline, and you may be able to read the whole thing. (I can)

LoneStarMike
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:13 am

Quoting LoneStarMike (Reply 32):
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 page, you can read the whole thing

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 text. I can quote the text, but not if I include the link.

Its been that way, for me, since Murdoch/News Corp took WSJ subscription. There may be a way to do it, but there have been posts about the difficulty in "Site related."

But - cheers for the info.  

mariner

[Edited 2012-02-06 19:13:40]
aeternum nauta
 
sxf24
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:13 am

Quoting sldispatcher (Reply 24):
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.

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 feared F9, instead they've seen them as vulnerable and have tried to eliminate the competition.

Quoting jamake1 (Reply 28):
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 place.

I think UA would only have an interest to the extent it allows it to solidify its position in DEN and boost yields to a sustainable level.
 
Jamake1
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:22 am

Quoting sxf24 (Reply 34):
I think UA would only have an interest to the extent it allows it to solidify its position in DEN and boost yields to a sustainable level.

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 entire domestic network.
United's B747-400. "She's a a cruel lover."
 
AS739BSI
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:34 am

Quoting DeltaMD90 (Reply 3):
I'm sure Delta is willing to buy them. It'll be a good fit after they buy AA and US

That'll probably happen oh let me see, sounds like fairly soon?

Quoting DesertAir (Reply 13):


I agree with this analysis. I don't think B6 would buy them because of the environment at DEN. B6 would be better off trying for elsewhere in the central part of the country if they wanted to set-up shop. Buying up F9 would just continue to bloodbath in DEN. The only thing I see good for B6 from F9 are the A319s and A320s. It would help if they wanted to take over some WN routes in PHL but first finish the BOS build-up.
 
sxf24
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:44 am

Quoting jamake1 (Reply 35):

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 entire domestic network.

You can boost yields farther if you eliminate a competitor's worth of capacity in DEN.  
 
Jamake1
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:54 am

Quoting sxf24 (Reply 37):
You can boost yields farther if you eliminate a competitor's worth of capacity in DEN.

Agreed. But I don't think F9 needs UA's help in that regard...  
United's B747-400. "She's a a cruel lover."
 
F9Animal
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 3:56 am

A single name came out as a rumor. It made my stomach churn. Hint: He destroyed TWA.
I Am A Different Animal!!
 
Bobloblaw
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 4:06 am

Quoting yellowtail (Reply 17):
MIght VX we one of the interested parties. NK also has cash and might be looking for a western hub

VX has no money to buy F9

Quoting bjorn14 (Reply 26):
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's complicated

I cant believe UA would dehub DEN and there is no way DEN would become a UA LCC spinoff hub anyways. Pilots would never allow it.

Quoting sldispatcher (Reply 24):
(a) Denver politicos who curried favor with WN and alienated F9 will never be held responsible

Bingo...I hope DEN pols are happy with themselves.

Quoting F9Animal (Reply 39):
A single name came out as a rumor. It made my stomach churn. Hint: He destroyed TWA.

Is he still trying to hock his Caribu tickets?
 
boilerla
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 4:12 am

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 complicated major acquisitions, that the more likely scenario is a private investor/equity group. Most such groups want to see a return on their investment in the short term, in which case F9 is more valuable in pieces than whole--routes, leases, gate space...

Anyway that's my two cents. I don't see any single company wanting F9, but if he says he has gotten interest, I'd guess it's from someone private rather than a public company, but I could be entirely wrong.
 
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mariner
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 4:19 am

Quoting etops1 (Reply 31):
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.

Certainly, Mr. Bedford has discussed the possibility of that and he has also frequently discussed Republic maintaining a minority holding - it is the basis of the FAPA agreement, which is, in turn the basis of the separation.

At a guess - and it is only a guess, sxf24, speculation - I think it may be a combo. A private investor/investors and the RJET shareholders holding the majority and RAH with its minority position.

The template is Spirit and how remarkably well the private investors did with the IPO and then the 2PO, how much money they have made.

Given the excellent rise in the RJET share price the last couple of weeks - based on "strength at Frontier" (see WSJ Jan 25) - this could be quite attractive to some of the RJET shareholders.

mariner

[Edited 2012-02-06 20:33:17]
aeternum nauta
 
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TWA772LR
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 4:38 am

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 the like of UA, DL, AS, WN, B9, etc...
Not every day we find light winds. What do we do in these situations? Fly.
 
YXwatcherMKE
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 4:39 am

Quoting DesertAir (Reply 13):
Quoting sldispatcher (Reply 24):
(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.

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 Midwest were wondering where FL was getting the cash from to make the offer that they did just before the TPG/NW deal was made. Many local investors in Midwest (myself included very small investment) were asking where the cash was coming from by FL due to the fact that just six months earlier the CEO of FL was stating that he was making MKE it's Midwestern hub due to the fact that they felt MKE was a good location for growth and that Midwest Airlines was proving that with the great growth they had over the years. Also that they needed a place to base some of their 73NG's that were due for delivery very soon. At the time that that statement was made FL was tight on cash and within a year of MKE becoming a small hub for FL they are looking to buy out their competitor(YX) in the MKE market. It really makes me wonder if WN was involved with supporting FL efforts to buyout Midwest Airlines. But we may never know the whole truth about the YX buyout.

Quoting mariner (Reply 25):
I donlt think this is a game of airlines - I think it is a game of money.

   I think you right on target with that statement!!!           

[Edited 2012-02-06 20:43:53]

[Edited 2012-02-06 20:44:19]
I miss the 60's & 70's when you felt like a guest on the plane not cattle like today
 
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etops1
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 5:35 am

USAirways is not interested in a transaction with any carrier smaller than them. F9 brings no value to USAirways . It just will not happen .
 
smoot4208
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 5:40 am

Quoting etops1 (Reply 45):
USAirways is not interested in a transaction with any carrier smaller than them. F9 brings no value to USAirways . It just will not happen .

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 cost structure, F9 would be toast. US also has no desire to add more A319s to it's fleet.
 
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DeltaMD90
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 6:19 am

Quoting AS739BSI (Reply 36):
Quoting DeltaMD90 (Reply 3):
I'm sure Delta is willing to buy them. It'll be a good fit after they buy AA and US

That'll probably happen oh let me see, sounds like fairly soon?

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 flying both. AS is a strong carrier, with hubs in ANC, SEA, and LAX (idk if LAX is a hub but it's at least a strong station.) I think DEN wouldn't be a bad fit. I don't know if AS would want to go up against a stronger UA and WN but who knows
Ironically I have never flown a Delta MD-90 :)
 
sxf24
Posts: 595
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 11:35 am

Quoting mariner (Reply 42):
The template is Spirit and how remarkably well the private investors did with the IPO and then the 2PO, how much money they have made.

Spirit has generated returns for its investors because it is profitably operating in markets that have limited competition and higher barriers to entry. The same can not be said for F9, which has little or no competitive advantage.
 
klwright69
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RE: Republic Says "Potential Buyers" For Frontier

Tue Feb 07, 2012 12:23 pm

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 F9, AND has the money?

Question: "Is F9 worth more alive than dead?" Does it offer enough for anyone to scoop it up as a living organism?

I can see UA or WN in a war of attrition to dominate DEN. But anyone else? What for? Too much competition. How times have changed since CO took down there DEN hub.

Even though I am in Saudi now, I am from DEN and still have family there. I was always angered by the impression F9 was not supported enough by the local media. I absolutely agree with this conclusion others have put forth. It seemed WN won more favors as they came in. And of course, UA has always been there.