Southwest bidding on Frontier?

Frontier was never purchased by RAH, they merely submitted a bid for the ch11 emergence package, and until today, they were the only ones to do so.
 
Could this be SWA method of getting into the international leisure market? To buy an airline (relatively inexpensively) that already has a track record running down to Mexico etc.?
Sounds smart.
 
I follow the goings-on at SWA pretty closely. I was very weary of SWA getting out of their "niche," because it has worked so well. However, times change... I still cannot fathom why they wanted to go to LGA or PHL (I know NY is a big market, but come on!), but BOS... MSP... MKE... SFO... all makes sense.

I think it will be a tough sell for the pilots, who are currently in contract negotiations and may be facing a merger/acquisition. I've always liked Frontier though, so maybe it will work out best for everyone.

FYI... SWA is putting off their planned codeshares until after 2010. "Hinting" at doing the Mexico/Canada stuff themselves. I think it is a great idea.

Now, question is will JetBlue also make a bid for Frontier? Will Bedford let his ego get in the way, and throw more cash at the Frontier venture?
 
Sounds like a way for SWA to gather pertinent information on the competition legally. In situations like these, when people are trying to save their employment status (particularly on the higher side of the ladder), tongues get loose. If they can be legally chummy with a few Frontier guys, proprietary information may kind of casually (and unofficially, of course) slip into the conversation here and there. I don't know though, we'll see. I'll believe SWA is really wanting into the game when they submit a binding bid.
 
Does that mean that WN will keep it an 737 fleet if purchased. I think the additional airframes (A318/A319) could really derail a lot of the progress that has been made but that's just my opinion.
 
jml2992 said:
Does that mean that WN will keep it an 737 fleet if purchased. I think the additional airframes (A318/A319) could really derail a lot of the progress that has been made but that's just my opinion.
Click to expand...

I would venture a guess that IF SWA actually follows through with a purchase, it would play out a little more like flychicaga's scenario where Frontier is more or less absorbed and the Airbii sold off.
 
ladder360 said:
Sounds like a way for SWA to gather pertinent information on the competition legally. In situations like these, when people are trying to save their employment status (particularly on the higher side of the ladder), tongues get loose. If they can be legally chummy with a few Frontier guys, proprietary information may kind of casually (and unofficially, of course) slip into the conversation here and there. I don't know though, we'll see. I'll believe SWA is really wanting into the game when they submit a binding bid.
Click to expand...

I believe Johnny O got in trouble for doing that a few years ago.

I like how you think though!!!
 
jml2992 said:
Does that mean that WN will keep it an 737 fleet if purchased. I think the additional airframes (A318/A319) could really derail a lot of the progress that has been made but that's just my opinion.
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COPIED from Flight Info...


Although our plans may vary as we work our way through this process, we wanted to share with you our present plan as we envision it. Frontier would continue to operate independently and separately for a period of time with its Airbus aircraft and personnel. We do not intend to integrate the Airbus into our Boeing 737 fleet. As we are able to retire Airbus aircraft, we will add Boeing 737 aircraft. Over time, Frontier Employees would be hired into Southwest as needed to support our fleet growth and expanded operations. There are many details to be worked through, but we are confident that the effort will be worthwhile. We are also confident that our bid, if successful, will boost low-fare competition and benefit consumers in Denver and other cities our expanded network will serve.
 
The whole post copied...

From SWALife me thinks.

Southwest Airlines Submits Nonbinding Proposal to Acquire Frontier Airlines

On Thursday, July 30, Southwest Airlines submitted a nonbinding proposal to acquire Frontier Airlines in accordance with the bidding procedures in the bankruptcy court. We view this as an exciting opportunity for the Employees and Customers of both Southwest and Frontier. It represents an opportunity for Southwest to grow our Denver Customers; grow our revenues; and grow our profits. We must caution, however, that this is merely a preliminary step in the bidding process.

We must submit a binding proposal by August 10. If there is more than one qualified investor, and at this time Republic Airways has also submitted a bid, an auction will be held beginning August 11. Frontier will determine, in consultation with the unsecured creditors committee, which bid to accept and present to the bankruptcy court for approval.

Although our plans may vary as we work our way through this process, we wanted to share with you our present plan as we envision it. Frontier would continue to operate independently and separately for a period of time with its Airbus aircraft and personnel. We do not intend to integrate the Airbus into our Boeing 737 fleet. As we are able to retire Airbus aircraft, we will add Boeing 737 aircraft. Over time, Frontier Employees would be hired into Southwest as needed to support our fleet growth and expanded operations. There are many details to be worked through, but we are confident that the effort will be worthwhile. We are also confident that our bid, if successful, will boost low-fare competition and benefit consumers in Denver and other cities our expanded network will serve.

Even if our bid is accepted and approved by the bankruptcy court, our closing on this transaction will be subject to several contingencies. These will include the negotiation of acceptable labor agreements dealing with the interim period of separate operation and seniority; and the appropriate regulatory review. Absent the negotiation of these labor agreements, we will not go forward with this transaction. However, we are confident that the benefits of such a transaction for Employees of both Southwest and Frontier will become self-evident and that we will be able to obtain such agreements.

We hope that you are as excited as we are about the possibilities inherent in this opportunity. Stay tuned!
 
Interesting read. One little thing grabbed my attention:

little_cricket said:
Over time, Frontier Employees would be hired into Southwest as needed to support our fleet growth and expanded operations.
Click to expand...

Just a few notes on that one sentence:

1) WN has reduced it's capacity.
2) F9 has an extraordinarily small fleet compared to WN's capacity
3) As the Airbus would be retired, would the capacity be replaced by upping the utilization of WN's present fleet (that seems to be their deal - and I would agree the best) or would there be growth at WN?

If (3) is the upping utilization of WN's fleet, then there is no need for the F9 pilots that I can see until well down the road. And the "hiring" of them - bottom of the WN list, or where a merged list would have kept them?

This could be a windfall if WN stays true to it's roots, or it could be worse for the F9 employees if they aren't needed for fleet growth and expanded operations.

Perhaps a move to expand the WN network without organic growth and protecting the on-property employees from a furlough?

/cynic
 
If you are a Frontier pilot the light is at the tunnel with SWA as well. Just think, that 15 year CA could hang out a few years longer and meanwhile years later the FO's junior to him will be his CA at SWA...
 
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