Republic. Frontier. Midwest

Republic Airlines Holdings reprend donc Frontier et Midwest.

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MINNEAPOLIS (AP) -- Republic Airways Holdings said Tuesday it will buy struggling Midwest Airlines for $31 million in cash and debt, the second time in two days it has sought to rescue an ailing airline.

On Monday, Republic said it would bid $108.8 million to take Frontier Airlines out of bankruptcy.

Republic Chairman and CEO Bryan Bedford said he plans to keep the Midwest name, and intends to restore the Midwest to the size it was about a year and a half ago. He said he intends to get Midwest flying back to cities it had
dropped, citing the recently announced return of flights to Los Angeles and Louisville, Ky., set to begin in August.

Adding Midwest and Frontier are big risks for Republic, and not just because of concerns about the individual carriers.

Until now Indianapolis-based Republic has flown under contract for other big airlines: American, Delta, US Airways, United, and Continental. That meant its main job was controlling costs, not filling seats. But by adding Frontier and Midwest, Republic exposes itself to travel downturns and competition from other airlines.

"The point is revenue diversity," Bedford said of the new additions. He cited the combination of Delta Air Lines Inc. and
Northwest as well as the talk about the possibility of more airline mergers, saying, "the fact is, if the people we partner with are merging, our diversity goes the other direction.

"We want more diversity in terms of where we harvest revenues, not less, and this is a necessary step we felt we had to take to reorient our business model to changing industry conditions," he said.

Republic said it would pay $6 million in cash and extend a $25 million note to Midwest owner TPG Capital. The note is convertible to Republic shares at $10 per share.

Midwest had owed TPG $31 million, so the sale basically repays TPG for $6 million of that debt and refinances the rest.

Republic said it expects the deal to close in one month to six weeks.

Oak Creek, Wis.-based Midwest has been struggling with other carriers encroaching on its Milwaukee hub. AirTran
has an extensive schedule there, and Southwest plans to add flights there later this year.

As Midwest has shrunk, it has hired Republic to do much of its flying.

Republic plans to replace all of Midwest's Boeing 717s with Embraer 190s once the separate unions that represent pilots and flight attendants merge their ranks, Bedford said. Republic pilots and flight attendants are Teamsters. Midwest crews are represented by the Air Line Pilots Association and the Association of Flight Attendants. Republic has roughly 2,000 active pilots, Midwest about 100, Bedford said.

As recently as last summer, Midwest's fleet included 12 MD-80s and 25 Boeing 717s. But it grounded all the MD-80s last year, and currently fly only nine of the 717s.

Republic shares spiked after the news hit about a half-hour before markets closed. They rose $1.90, or 47.3 percent, to close at $6.00.

AirTran Holdings Inc., made a hostile takeover bid of $78 million for Midwest in June 2005. AirTran raised its offer several times, and by August 2007 it had an estimated $445 million on the table. Each offer was rejected.

Fort Worth, Texas-based TPG Capital ultimately bought Midwest for about $450 million in January 2008,
including a minority stake held by Northwest Airlines, which Bedford said is also selling its shares.

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Les ERJ Embraer vont servir pour ouvrir de nouvelles lignes ( déjà bien occupée par des single aisles )

La justice autorise le rachat de Frontier par Republic Airways Holdings

NEW YORK (AP) — A bankruptcy judge on Monday approved a plan by Republic Airways Holdings to buy Frontier Airlines for $108.8 million, although other bidders could still come forward.

Denver-based Frontier Airlines Holdings Inc. said it can get out of the Republic purchase if a better offer comes along. Any competing bidders would have to make an initial proposal by Aug. 3, with final proposals due Aug. 10. If other bidders come forward, an auction will take place in bankruptcy court on Aug. 11.

Frontier already sought other investors during the process that resulted in the Republic bid.

Indianapolis-based Republic Airways Holdings Inc. is a regional carrier that currently flies under contract for other airlines. Adding Frontier will put Republic in the business of competing for passengers to fill flights. Frontier has been under intense pressure in Denver from Southwest Airlines Co. and UAL Corp.'s United Airlines, although it has
shown an operating profit through May.

Republic has also announced plans to buy Midwest Airlines for $31 million in cash and debt.

Republic shares rose 12 cents, or 2.3 percent, to $5.33 in afternoon trading. Frontier's bankruptcy plan calls for its old shares to be canceled.

Copyright 2009 The Associated Press. All rights reserved.

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Southwest part à son tour à la conquête d'une nouvelle Frontier en contrant la Republic

Southwest va faire le mois prochain une offre d'au moins 113,6 mimmions de $ pour reprendre son concurrent Frontier Airlines qui est en dépot de bilan

Southwest Airlines will submit at least a $113.6 million bid to buy competitor Frontier Airlines, which will auctioned off in bankruptcy court next month.

The low-cost carrier's bid is larger than Republic Airways Holdings recent offer of $108 million for its former partner Frontier, which entered Chapter 11 bankruptcy protection in April 2008.

Southwest intends to initially operate Frontier as a wholly-owned subsidiary until the carrier could be combined into Southwest, carrier executive vice president corporate services and corporate secretary Ron Ricks says on the Southwest blog. The carrier will also study options for Frontier subsidiary Lynx, a Bombardier Q400 operator, Ricks says.

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Merci

D'ici là Republic Holdings, Indianapolis, a pris le contrôle de Midwest

Oak Creek-based Midwest Airlines Inc. now has a new owner: Indianapolis-based Republic Airways Holdings
Inc. completed its $31 million purchase of Midwest on Friday, Republic spokesman Carlo Bertolini said.

Midwest, which began regularly scheduled passenger flights in 1984, will continue to operate under that name. But it's
now a wholly owned subsidiary of Republic, which is best known for operating commuter flights for Delta Air Lines Inc., United Airlines and other major carriers.

With the sale, Midwest Chairman and Chief Executive Officer Timothy Hoeksema, who helped start the airline, retires. Republic CEO Bryan Bedford is the new boss.

There also will be a change in aircraft, with Midwest dropping its nine 99-seat Boeing 717 jets, to be replaced by nine 99-seat Embraer 190 jets. Under Republic's ownership, Midwest's fleet will include a dozen 76-seat Embraer 170 aircraft, and 12 regional jets with 37 to 50 seats.

Midwest's union pilots and flight attendants are [Vous devez être inscrit et connecté pour voir ce lien] with their union counterparts at Republic about merging the seniority lists of those flight crews. Bedford has said most of Midwest 1,618 employees, including those working at the Oak Creek headquarters, can expect to keep their jobs. But some job cuts are expected among administrative and back-office employees.

Still, Bedford says Republic plans to [Vous devez être inscrit et connecté pour voir ce lien], which should bring job growth for the airline.

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Southwest augmente son offre sur Frontier.
Explications et conséquences survolées par Flight :

Southwest Airlines submitted today a binding cash offer of more than $170 million for rival Frontier Airlines ahead of the Denver-based carrier being auctioned off in bankruptcy court on 13 August.

The amount is greater than Southwest's previously announced plans to offer at least $113.6 million for Frontier, which has been in Chapter 11 bankruptcy protection since April 2008.

Republic Airways Holdings is also in the running to buy Frontier. Republic said in June it would offer $108 million and it is not yet clear whether it will increase this to trump Southwest's $170 million offer.

Today's bid from Southwest contemplates that the low-cost carrier will acquire roughly 80% of Frontier's existing Airbus fleet, about 40 aircraft, on top of the 10 Bombardier Q400s operated by Frontier regional subsidiary Lynx. But Frontier's Airbus fleet would be phased out and replaced with Southwest's Boeing 737s in roughly 24 months.

Dallas-based Southwest intends to maintain existing Frontier markets despite the initial fleet reduction. The airline says it will also add new nonstops from Denver presently not offered by Southwest or Frontier.

Frontier and Southwest overlap in Denver in about 27 markets, Southwest has said. There are about six cities that are
served by both carriers but for which only Frontier currently serves on a non-stop basis.

Southwest first launched 13 daily non-stop flights from Frontier's Denver hub in January 2006. Competition between the two low-cost carriers intensified throughout 2008, with Southwest adding flights as Frontier trimmed capacity. Today, Southwest operates 113 daily non-stop flights from Denver.

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David Cush, CEO Virgin America, déclare qu'en cas de reprise de Frontier par Southwest ( flotte tout B ) les Airbus de Frontier pourraient l' l'intéresser. Ainsi que la fameuse desserte de Denver ?

California-based airline [Vous devez être inscrit et connecté pour voir ce lien] may be interested in buying Frontier Airlines' Airbus fleet if [Vous devez être inscrit et connecté pour voir ce lien] succeeds in its bid for the Denver carrier, according to a news report Tuesday.

Virgin America CEO David Cush [Vous devez être inscrit et connecté pour voir ce lien] that his airline, which flies Airbus planes, may be interested in the 40 Airbus jets owned by [Vous devez être inscrit et connecté pour voir ce lien]

Southwest officials have said that if their $170 million bid for Frontier is successful, they would eventually dispose of Frontier's Airbus fleet. Southwest flies Boeing jets.

Bloomberg noted that most of Frontier’s jets are five years old or younger, and that the jets' electronics and engines would be compatible with Virgin America's equipment.

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C'est finalement Republic Holding qui récupère Frontier, semble-t-il !

Sur AirTransportNews :

Frontier Airlines Holdings, Inc. today announced that Republic Airways Holdings, Inc. has been declared the winning bidder in the auction to acquire Frontier. The auction was conducted under procedures established in Frontier’s Chapter 11 bankruptcy cases.

Republic submitted the highest and best bid, which included substantial improvements from its original investment proposal. Republic waived virtually all conditions precedent to closing and has advised Frontier that it yesterday received Hart-Scott- Rodino antitrust clearance for the transaction.
Republic also agreed to waive distributions on its $150 million prepetition unsecured claim, which is expected to result in a 94 percent increase in the distribution to Frontier’s general unsecured creditors. The selection of Republic’s bid was made in consultation with the Creditors’ Committee appointed in Frontier’s Bankruptcy Case.

“We appreciate the participation of both Republic and Southwest Airlines in our auction process,” said Frontier President and Chief Executive Officer Sean Menke. “We are pleased to have Republic as a plan sponsor that will allow
Frontier to emerge from bankruptcy as a well-financed, competitive and sustainable airline. This plan provides for Frontier and Lynx to maintain normal operations as a subsidiary of Republic, with further capital and growth
opportunities in the future. This is also great news because it is expected to preserve the jobs of most Frontier employees, who have worked tirelessly to further build our unique brand and deliver outstanding service to our
customers. I would be remiss if I didn’t mention my 5,000 plus team members. Today’s announcement is the beginning of a wonderful new chapter for this proud organization and would not have happened without the hard work, dedication and sacrifice of them all.”

“I look forward to welcoming Frontier to our Republic family,” said Bryan Bedford, Chairman, President and CEO of Republic. “Frontier has made impressive strides in returning to sustained profitability in a challenging and uncertain economic environment. We congratulate the employees of Frontier. Their commitment and perseverance during the bankruptcy process has allowed the Frontier brand to survive and thrive.”

Frontier’s unsecured creditors will continue voting on Frontier’s current proposed Plan of Reorganization, which is premised on a Republic acquisition. Pursuant to its investment agreement, Republic has agreed to purchase 100 percent of the stock of Frontier Holdings upon its emergence from bankruptcy for $108.75 million, so long as certain conditions are met. Frontier Airlines Holdings would become a wholly-owned subsidiary of Republic, an airline holding company that owns Chautauqua Airlines, Midwest Airlines, Mokulele Airlines, Republic Airlines and Shuttle America.

Frontier currently expects to emerge from Chapter 11 this autumn.

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Voici un article de l'Examiner, qui lève le voile sur quelques aspects non mentionnés ici jusque là; les syndicats ( de pilotes )

Je place l'integralité :

The news that Southwest’s bid for Frontier was not selected as the winner due to a lack of common ground between the carriers’ pilots groups came as a surprise to many in the industry when it was announced Thursday.

Members of the [Vous devez être inscrit et connecté pour voir ce lien] and [Vous devez être inscrit et connecté pour voir ce lien] met late into the evening the night before the bankruptcy court auction, discussing items such as pay and seniority, and the
two groups failed to reach a mutually agreeable decision.
Although offered a pay increase and the opportunity to work for a company with an unprecedented record of profit and zero layoffs throughout their history, FAPA rejected the latest offer based on disagreements over seniority. In the airline industry, seniority determines everything from one’s schedule, to the city one is based in, to the time of year one takes vacation. It’s the issue that has the [Vous devez être inscrit et connecté pour voir ce lien]-America West merger still operationally incomplete into its fourth year.
SWAPA wanted to add the seniority list from Frontier to the bottom of the existing one (similar to the [Vous devez être inscrit et connecté pour voir ce lien]-TWA
merger), but offered job security in return (most of the TWA flight and cabin crews were subsequently furloughed, [Vous devez être inscrit et connecté pour voir ce lien] has never furloughed or laid off a single employee). FAPA preferred a “relative seniority” arrangement which would have placed many Frontier pilots ahead of Southwest employees on the seniority list. That was the sticking point. SWAPA membership didn’t feel the value brought to SWA by a [Vous devez être inscrit et connecté pour voir ce lien] merger would justify a loss in seniority for pilots at the acquiring carrier.

- It’s easy to make knee-jerk reactions to the news, and many did. Many media and financial outlets felt that
Southwest’s bid was a winning deal from the day it was announced. Republic certainly would have been hard pressed to win a bidding war against Southwest. Many were also quick to point to Southwest’s lackluster performance in Denver as a motive, arguing that Southwest simply [Vous devez être inscrit et connecté pour voir ce lien] in a market in order to turn a profit. That one’s perhaps a bit presumptuous for even a professional analyst to claim. A lot of venom certainly came through on the internet from both Dallas and Denver.
This is undoubtedly an industry with very passionate followers.

Here’s what I can ascertain the industry learned during this very interesting period that’s definitely one for the history books:

1. The old rules about Southwest Airlines network strategies are gone.
There have already been indicators that the company had been moving in this direction by entering markets it had
traditionally avoided, such as Boston Logan and New York LaGuardia, as well as the international toe-in-the-water code share agreements with [Vous devez être inscrit et connecté pour voir ce lien] and [Vous devez être inscrit et connecté pour voir ce lien]. What is different here is that Southwest made announcements to serve all of Frontier’s existing markets, which included several cities that the airline would never before have considered. Without “Southwest Immunity” (a term I use to describe cities that were historically of little or no interest to SWA for various reasons) cities like Atlanta, Cancun, and Anchorage are no longer “off the table”.

2. Southwest management “Walks the Talk.” Gary Kelly told the world from the beginning of the proposal that the airline’s management would not continue to pursue the bid unless the employees were behind the idea. We said all along that we would only move forward on this deal if it proved to be the right decision for our Employees and financially prudent for our Company,” said Gary in the airline's prepared statement regarding the bid.
“We have a mission to preserve and protect our Culture and the best interests of our Employees, Customers, and Shareholders."
SWAPA invoked that right, saying that FAPA’s demands were too high, and the bid was withdrawn. Typically, airline acquisitions are negotiated behind closed doors by management, which then tries to “sell” the benefits of the arrangement to the employees. In the case of Southwest, the line was, “Here’s the deal, here’s how we think we’ll benefit, but apart from that, it’s up to you.” And it really was. If successful, the acquisition would likely have served as the proverbial goldmine for Southwest, worth more than the purchase price, but the message is clear, “If it comes at a cost of culture or morale, it’s too expensive.” While Southwest may be painted as the failed bidder in this process, it will have undoubtedly won invaluable gains in the form of employee goodwill and loyalty.

3. Southwest doesn’t have the franchise on rabidly loyal fans. [Vous devez être inscrit et connecté pour voir ce lien] may have been small, but the mere fact that they were held indicates thick brand strength on the part of Frontier from both employees and
passengers. That might have appeared early on to make Frontier a good fit for Southwest, but turned out to be “too different” in the end.

4. Frontier’s future is by no means guaranteed. Ironically, while Southwest management’s actions may have been a
compelling statement of kept promises and dedication to employees and culture, Frontier employees are now faced by a new owner whose track record with employee relations and retention hasn’t been quite as generous.
Following the takeover of Midwest Airlines, Republic rid Midwest’s Boeing 717 fleet, thus dismissing the company’s entire roster of pilots, replacing them with Republic-crewed regional jets. Frontier and their employees are now subject to the overall oeuvre of Republic, which as any in the industry can tell you, for any airline, rarely remains constant, especially in cases of airline conglomerates. Has the industry already forgotten about the
wild tales from the Texas Air stables? While many might point out the relative profitability of Frontier in comparison with Southwest, both Frontier and Republic are cash-poor when compared with the atypically strong (for the industry) and conservative cash position enjoyed by Southwest.

5. Southwest’s trajectory is aimed higher. While most of this year has been spent contracting to compensate for a
demand fall-off (and effectively so - Southwest has been reporting record load factors), an airline can’t just declare an interest in purchasing another carrier with the intention of absorbing all of its routes and most of its aircraft,
decide it’s the only way worth growing, and then rest easy when the deal falls through. Expect a burst of activity. As any industry veteran can tell you, they’re no stranger to a good fight. -SL

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Bon résultats pour Frontier, mais sous Chapter 11.

Réduction des coûts de 27%, passage sous le giron de Republic Holdings, la sortie est possible

Sur le Bizjournal :

[Vous devez être inscrit et connecté pour voir ce lien] maintained its successful ways in July, reporting its ninth straight month of operating profit Thursday.

The Denver-based airline holding company -- soon likely to become a unit of [Vous devez être inscrit et connecté pour voir ce lien] -- said its consolidated operating profit for July was $24.9 million, up from $1.2 million in the same month of 2008. Its June 2009 operating profit was $14.2 million.

Frontier reported consolidated net income in July of $17.8 million versus a net loss of $3.2 million in the year-ago month.

Frontier, which is operating under Chapter 11 bankruptcy protection, reports operating results monthly under bankruptcy laws.

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Résultats préliminaires aout, toujours Frontier ( et Lynx )

RPM en baisse de 10% et ASM de 13,8 : réduction d'offre en sièges

Frontier Airlines Holdings, Inc. (OTC Bulletin Board: FRNTQ) today announced preliminary traffic results for August 2009 for both Frontier's mainline operation and its wholly owned subsidiary, Lynx Aviation.

Mainline Results for August 2009:

• Revenue passenger miles decreased 10.3 percent to 826,752,000, and capacity (as measured by available seat miles) was down 13.8 percent to 932,579,000 from the same period last year. This resulted in a load factor of 88.7 percent, an increase of 2.7 points from August 2008.
  
• The airline carried 915,970 passengers, a 9.5 percent decrease from the same period last year.
  
• The airline's average length of haul decreased 0.8 percent to 903 miles.
  

Lynx Aviation Results for August 2009:

• Revenue passenger miles increased 21.2 percent to 42,493,000 and capacity was up 6.8 percent to 54,746,000. This resulted in a load factor for August 2009 of 77.6 percent, an increase of 9.2 points over August 2008.
  
• Lynx carried 125,934 passengers, a 22.0 percent increase from August 2008.
  
• The airline's average length of haul decreased 0.9 percent to 337 miles.
  

Frontier estimates that mainline passenger unit revenue decreased year-over-year by 11 percent to 13 percent in the month of August 2009.

The following tables represent comparisons for the month of August year-over-year, fiscal year-to-date and calendar year-to-date traffic results for Frontier's mainline operations and for Lynx.


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Tableau 1 Mainline

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Tableau 2 Lynx

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Le plan de sortie du chapter 11 de Frontier approuvé par la justice

Détails sur Businesswire

Company Has Cleared Last Major Hurdle before Emerging from Bankruptcy

DENVER--([Vous devez être inscrit et connecté pour voir ce lien])--Frontier Airlines Holdings, Inc. (OTCBB: FRNTQ) announced today that the Bankruptcy
Court for the Southern District of New York has confirmed the Company's Plan of Reorganization.

The Company successfully resolved the few objections to its Plan of Reorganization prior to today,
resulting in an uncontested confirmation hearing. Frontier, along with its legal advisors Davis Polk and Wardwell LLP and financial advisors Seabury Group, LLC, has worked throughout its stay in bankruptcy to achieve consensual
resolutions with affected parties, which has become a hallmark of Frontier's entire Chapter 11 case.

With the Bankruptcy Court's order confirming its Plan of Reorganization, Frontier will proceed to emerge from bankruptcy on or about Oct. 1, 2009, as a wholly owned subsidiary of Republic Airways Holdings, Inc.

“This is an extremely proud day for everyone in our Company,” said Frontier President and CEO Sean Menke. “Many
people doubted that we would even survive, let alone accomplish a successful reorganization, provide a recovery for our creditors and emerge a stronger competitor and company. Upon consummation of our Plan of Reorganization with
Republic, we will be a successfully restructured airline, well positioned to be a competitive, successful, sustainable airline for years to come.”

Menke continued, “I must give a special thanks to all of our Frontier and Lynx employees. Their hard work, sacrifice and resiliency during the bankruptcy was key to our successful reorganization. They are the primary reason why Frontier Airlines and Lynx Aviation are where we are today.”

SOURCE: Frontier Airlines Holdings, Inc.


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Sortie du chapter 11 le 1 octobre pour Frontier

Résultats corrects en phase avec le plan approuvé par la justice

Sur Businesswire

Company to Emerge from Bankruptcy on Oct. 1

Frontier Airlines Reports August Operating Profit of $10.2 Million

Frontier Airlines Corporate Communications, 720-374-4560
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Frontier Airlines Holdings, Inc. (OTC Bulletin Board: FRNTQ) today reported an operating profit of $10.2 million for the month of August. The Company also reported a net loss of $2.0 million, due to expenses associated with its bankruptcy case. The results were filed in the Company's unaudited Monthly Operating Report for August 2009.

Frontier reported a consolidated operating profit of $10.2 million for the month of August 2009, compared to an operating income of $3.3 million for the same period in 2008, and a total consolidated net loss of $2.0 million compared to a net loss of $5.6 million for August 2008.
Excluding special items, the Company would have reported net income of $10.2 million, or a net margin of 10.0 percent, in August 2009, compared to net income of $1.2 million, or a margin of 0.9 percent, in 2008.
Excluding special items, the operating profit for the month was $11.9 million versus an operating profit of $3.4 million in August 2008.

Special items for the month of August 2009 included $10.5 million of reorganization expense, compared to $6.5 million in August 2008.

Operational results for the month of August 2009 included:

• A 13.0 percent year-over-year mainline capacity reduction
  
• Mainline unit cost excluding fuel (CASM ex-fuel) was 5.81 cents, an increase of 8.4 percent over August 2008
  
• Mainline total unit cost (CASM) was 8.96 cents, a 16.3 percent reduction from the same period in 2008
  
• Mainline passenger revenue (PRASM) was 9.31 cents, a reduction of 12.6 percent from the previous year
  
• Mainline total unit revenue (RASM) was 10.17 cents, an 8.2 percent reduction compared to August 2008
  

'It is impressive that, even with more than $10 million in expenses related to our bankruptcy case, double-digit reduction in revenue due to the continuing weak economy and constant competitive pressure, we still managed a $10 million operating profit in August,' said Frontier President and CEO Sean Menke. 'This and our financial performance over the past 10 months is validation of our laser focus on cost, our continuing revenue development efforts and our constant attention to providing the highest levels of service to our loyal customers.'

Frontier expects to emerge from bankruptcy on Oct. 1 as a wholly owned subsidiary of Republic Airways Holdings, Inc.

Companies in Chapter 11 bankruptcy protection are required to file monthly operating reports to the U.S. Trustee in addition to quarterly reports filed with the U.S. Securities and Exchange Commission.

A copy of the Monthly Operating Report is available at:
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Republics Holdings rachète 10 ERJ 190AR à US Airways pour US$ 35 mio. Ils remplaceront une partie des B 717 de Midwest

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Republic Airways Holdings today announced that it will acquire 10 Embraer 190AR jets from US Airways. Republic will apply the full balance of its $35 million loan from US Airways toward the purchase of the aircraft and assume the remaining debt on the aircraft.

Four of the 99-seat jets are expected to enter service in November and December 2009 and will replace Boeing 717 aircraft that are being removed from service at Republic’s Midwest Airlines. The remaining six aircraft are expected to enter service in branded operations during the first half of 2010.
With the addition of these 10 aircraft, Republic’s subsidiaries will operate the largest fleet of EJet aircraft in the world with a total of 145 EJets, including 15 E190 aircraft.

“We’re pleased to work with our long-standing partner, US Airways, to expand our fleet of EJet aircraft,” said Sean Menke, EVP and Chief Marketing Officer of Republic Airways. “The E190 has allowed us to offer unmatched passenger comfort while restoring service to important destinations within our branded network, and these additional aircraft will allow us to continue that process.”

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