Republic Airways : RW : RPA
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Re: Republic Airways : RW : RPA
par Jeannot Mer 04 Mai 2011, 05:53
Republic Airwaus parle d'un dépot pour des A320neos
[Vous devez être inscrit et connecté pour voir ce lien]
Republic alludes to A320neo place holder deposit
Frontier Airlines parent Republic Airways Holdings has placed an aircraft place holder deposit with [Vous devez être inscrit et connecté pour voir ce lien] for the re-engined A320neo, according to a company executive.
Speaking during a 3 May earnings call Republic controller Joe Allman explained of the $19.9 million investment activities conducted by the company during the first quarter, $8 million entailed "a place holder deposit on Airbus neo aircraft".
A spokesperson from Republic was not immediately able to expand on Allman's comments. Currently, Frontier operates 54 [Vous devez être inscrit et connecté pour voir ce lien] family aircraft, and has nine of the type on order according to Flightglobal's ACAS database.
Republic also ordered 40 [Vous devez être inscrit et connecté pour voir ce lien] CSeries CS300s in February 2010 powered by the [Vous devez être inscrit et connecté pour voir ce lien] 1524G geared turbofan, supplying a much needed boost to Bombardier's narrowbody aircraft programme.
P&W is also one of the engine suppliers for the A320neo, and so far the 1100G has secured all the firm engine orders from customers that have made engine selections.
Previously, Republic has said it planned to align CSeries delivery dates with expiration dates on A319s exiting Frontier's fleet. Currently, Republic is scheduled to receive its first CSeries aircraft in the second quarter of 2015.
Airbus, meanwhile, has recently advanced the A320neo's service entry to October 2015, and has accelerated introduction of the A319neo ahead of the re-engined A321 variant.
In the short term Frontier says it is in the midst of a "low cost project" to add two seats to its [Vous devez être inscrit et connecté pour voir ce lien] fleet for a total of 138, and expects to complete the programme by the end of the current quarter
[Vous devez être inscrit et connecté pour voir ce lien]
Jeannot- Membre
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Re: Republic Airways : RW : RPA
par SEVRIEN Mer 04 Mai 2011, 08:33
Bonjour, chers tous. Merci, Jeannot.
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Bizarre. ! Bizarre !
On ne comprend pas facilement la stratégie de flotte de "Republic" !
A suivre ! Il est préférable de ne pas spéculer, surtout quand le GTF de P&W est dans le tableau ! ;)
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---------------------Jeannot a écrit:Republic Airwaus parle d'un dépot pour des A320neosRepublic alludes to A320neo place holder deposit
Frontier Airlines parent Republic Airways Holdings has placed an aircraft place holder deposit with [Vous devez être inscrit et connecté pour voir ce lien] for the re-engined A320neo, according to a company executive.
Speaking during a 3 May earnings call Republic controller Joe Allman explained of the $19.9 million investment activities conducted by the company during the first quarter, $8 million entailed "a place holder deposit on Airbus neo aircraft".
A spokesperson from Republic was not immediately able to expand on Allman's comments. Currently, Frontier operates 54 [Vous devez être inscrit et connecté pour voir ce lien] family aircraft, and has nine of the type on order according to Flightglobal's ACAS database.
Republic also ordered 40 [Vous devez être inscrit et connecté pour voir ce lien] CSeries CS300s in February 2010 powered by the [Vous devez être inscrit et connecté pour voir ce lien] 1524G geared turbofan, supplying a much needed boost to Bombardier's narrowbody aircraft programme.
P&W is also one of the engine suppliers for the A320neo, and so far the 1100G has secured all the firm engine orders from customers that have made engine selections.
Previously, Republic has said it planned to align CSeries delivery dates with expiration dates on A319s exiting Frontier's fleet. Currently, Republic is scheduled to receive its first CSeries aircraft in the second quarter of 2015.
Airbus, meanwhile, has recently advanced the A320neo's service entry to October 2015, and has accelerated introduction of the A319neo ahead of the re-engined A321 variant.
In the short term Frontier says it is in the midst of a "low cost project" to add two seats to its [Vous devez être inscrit et connecté pour voir ce lien] fleet for a total of 138, and expects to complete the programme by the end of the current quarter
[Vous devez être inscrit et connecté pour voir ce lien]
Bizarre. ! Bizarre !
On ne comprend pas facilement la stratégie de flotte de "Republic" !
A suivre ! Il est préférable de ne pas spéculer, surtout quand le GTF de P&W est dans le tableau ! ;)
SEVRIEN- Membre
- Messages : 20088
Re: Republic Airways : RW : RPA
par Lambo Jeu 05 Mai 2011, 08:54
Bonjour,
Standardiser les soucis prévisibles en exploitation des P&W GTF est une façon de commuer l'ensemble.
Plus sérieusement, l'absorption de Frontier par Republic Holdings n'a pas rompu contractuellement les relations Airbus / Frontier, hors lessors détenant des contrats non renouvelables.
On ne voit pas très bien une flotte mixte Bombarider CS et A 319neo avec tout son sens économique.
Qui voit, d'ailleurs, un vrai business case pour le GTF....?
Standardiser les soucis prévisibles en exploitation des P&W GTF est une façon de commuer l'ensemble.
Plus sérieusement, l'absorption de Frontier par Republic Holdings n'a pas rompu contractuellement les relations Airbus / Frontier, hors lessors détenant des contrats non renouvelables.
On ne voit pas très bien une flotte mixte Bombarider CS et A 319neo avec tout son sens économique.
Qui voit, d'ailleurs, un vrai business case pour le GTF....?
Lambo- CLUB
- Messages : 685
Re: Republic Airways : RW : RPA
par SEVRIEN Jeu 05 Mai 2011, 10:34
Merci, Lambo.
Vous avez raison de poser la question sur le "Business Case".
Tant que le litige entre RR & P&W restera sans résolution, le "Business Case" sera très difficile à établir, indépendamment des autres éléments usuels, déjà souvent évoqués, à juste titre.
En outre, le "Business Case", notamment sur le CSeries, et l'opération Airbus "A320-NEO" ne convainc personne, ... sauf si l'on veut lancer le GTF à tout prix ! C'est un autre sujet, et il y a un contenu de considérations stratégiques, qui entre en ligne de compte (du moins, ... on peut l'espérer) !
Le vrai "business case" ne saurait être établi que lorsque P&W pourra assumer, et assumera, le garanties d'ussage qu'il faut donner aux clients, et lorsqu'il y aura des airframes dédiés à ce concept de GFT ("Geared Fan Technology"), selon l'approche du GTF. Et cela n'est le cas pour, ni le MRJ-90, ni le CSeries, ni le NEO !
Ces airframes ne sont ni optimisés, ni assez 'optimisables' pour leur permettre de tirer la quintessence de ce moteur. Et c'est la perception, tout à fait compréhensible, les moteurs GTF soulèvent trop de questions que P&W ne veut pas traiter avec l'engagement et la prise de responsabilité qu'il lui incombe d'assumer .
La perception est que P&W et une certaine génération d'Ingénieurs et de Dirigeants chez P&W, avec les personnes correspondantes chez UTC, ont voulu imposer ce moteur sur le marché, avant l'heure, et avant leur départ de leur travail (la retraite). Ils veulent le "pay-back", sans plus attendre !
Ces gens doivent assumer cela.
Aussi, il est permis de poser les questions :
Helas, beaucoup trop de personnes croient, arguments à l'appui, qu'Airbus aurait pu exercer de meilleures options !
A voir ! :|
On comprend aisément la question des contrats antérieurs.Lambo a écrit:Bonjour,
Standardiser les soucis prévisibles en exploitation des P&W GTF est une façon de commuer l'ensemble.
Plus sérieusement, l'absorption de Frontier par Republic Holdings n'a pas rompu contractuellement les relations Airbus / Frontier, hors lessors détenant des contrats non renouvelables.
On ne voit pas très bien une flotte mixte Bombarider CS et A 319neo avec tout son sens économique.
Qui voit, d'ailleurs, un vrai business case pour le GTF....?
Vous avez raison de poser la question sur le "Business Case".
Tant que le litige entre RR & P&W restera sans résolution, le "Business Case" sera très difficile à établir, indépendamment des autres éléments usuels, déjà souvent évoqués, à juste titre.
En outre, le "Business Case", notamment sur le CSeries, et l'opération Airbus "A320-NEO" ne convainc personne, ... sauf si l'on veut lancer le GTF à tout prix ! C'est un autre sujet, et il y a un contenu de considérations stratégiques, qui entre en ligne de compte (du moins, ... on peut l'espérer) !
Le vrai "business case" ne saurait être établi que lorsque P&W pourra assumer, et assumera, le garanties d'ussage qu'il faut donner aux clients, et lorsqu'il y aura des airframes dédiés à ce concept de GFT ("Geared Fan Technology"), selon l'approche du GTF. Et cela n'est le cas pour, ni le MRJ-90, ni le CSeries, ni le NEO !
Ces airframes ne sont ni optimisés, ni assez 'optimisables' pour leur permettre de tirer la quintessence de ce moteur. Et c'est la perception, tout à fait compréhensible, les moteurs GTF soulèvent trop de questions que P&W ne veut pas traiter avec l'engagement et la prise de responsabilité qu'il lui incombe d'assumer .
La perception est que P&W et une certaine génération d'Ingénieurs et de Dirigeants chez P&W, avec les personnes correspondantes chez UTC, ont voulu imposer ce moteur sur le marché, avant l'heure, et avant leur départ de leur travail (la retraite). Ils veulent le "pay-back", sans plus attendre !
Ces gens doivent assumer cela.
Aussi, il est permis de poser les questions :
- (a) "Est-il approprié qu'Airbus, notamment, se prête aux choix et actions que nous connaissons, dans ce contexte ?
- (b) "N'y a-t-il vraiment pas d'autres solutions mieux adaptées, plus raisonnables et plus efficaces sur les plans commercial, technique et économique / financier ?"
Helas, beaucoup trop de personnes croient, arguments à l'appui, qu'Airbus aurait pu exercer de meilleures options !
A voir ! :|
SEVRIEN- Membre
- Messages : 20088
Re: Republic Airways : RW : RPA
par SEVRIEN Mer 25 Mai 2011, 21:32
Bonsoir, chers tous !
P&W, et personne d'autre, sème le désordre dans l'aéronautique, et l'aviation militaire et civile en ce moment !
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(1) Aviation militaire :
(2) Aviation Civile :
Il convient de lire l'article ci-après à la lumière de ce qui précède :
Lien :
[Vous devez être inscrit et connecté pour voir ce lien]
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DATE:24/05/11. SOURCE:Air Transport Intelligence news
Bombardier confident Republic will stick with CSeries order
By [Vous devez être inscrit et connecté pour voir ce lien]
"Confident" ? Bombardier peut-il vraiment avoir confiance ? "Read on " / 'voir ci-dessous' !
Republic a appris les "clauses revolver" et "de switch'', ... dont bénéficie LH (et la "clause revolver" dont bénéficierait la filiale SWISS). Les dirigeants savent que, 'en cas de pépin' (on n'a pas besoin de faire un dessin) il est possible de revenir à une solution "legacy", avec les combinaisons "sharklets" + moteurs CFM-56 ou IAE V2500, ou d'appliquer le "switch", pour abandonner le GTF et aller vers le LeapX !
En ce qui concerne le CSeries, il n'y pas un tel ensemble de solutions rapides et pragmatiques, en raison de l'exclusivité de la motorisation GTF de P&W !
On verra !
P&W, et personne d'autre, sème le désordre dans l'aéronautique, et l'aviation militaire et civile en ce moment !
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(1) Aviation militaire :
- (a) Moteur pour le F35 : il n'arrive pas à contenir les coûts de revient de son moteur ; et ce n'est pas le problème du "Lift System" de RR, qui est arrivé à date, selon spécification, sans besoin de re-work , et au prix convenu :
- (b) P&W pleure et fait ses lobbies : pour que le moteur "de 2ème source" (soit celui du partenariat GE-RR) soit officiellement éliminé ; il n'aime pas qu'on lui rappelle que c'est seulement pendant la phase où le budget avait été accordé au partenariat GE-RR, que, sous la pression de la concurrence, P&W a trouvé, comme par miracle, d'éventuelles possibilités de réduire ses coûts de revient, et de réajuster le prix, ou 'la perspective de l'évolution du prix' de son moteur.
(2) Aviation Civile :
- (a) P&W enfreint le brevet de RR, et vole la propriété intellectuelle de RR : à ce stade, ce n'est pas la décision de ces derniers jours, concernant les aubes de la soufflante du GP7200 de l'EA, qui va changer la vérité fondamentale ; il y aura des suites, ... qui n'iront pas dans le sens de l'avantage de P&W, pour les raisons que nous avons indiquées (voir ci-après) ;
- (b) P&W avait avancé des dates pour les EIS de ses divers moteurs du genre GTF : maintenant, il est certain que ces dates ne pourront pas être tenues, depuis sa "voluntary injunction", par laquelle P&W promet de s'interdire de poursuivre les infractions des brevets de RR, et de développer une soufflante, et des aubes de soufflante, pour les diverses versions concernées de son GTF (destinées respectivement aux avions MRJ, CSeries et Airbus A320-NEO ! ), où il ne sera pas question pour P&W (dixit P&W) de s'exposer aux risques desdites infractions, et ce, dans le but de (et avec le résultat demandé à ce stade de... ) n'avoir à payer aucune pénalité en dommage-intérêts à RR (après toutes ces années de "contempt of court" / 'outrage à la cour' -- comportement qui expose P&W à des conséquences possibles d'ordre pénal -- par le refus d'exécuter les jugements déjà émis en bonne et due forme à son encontre) ;
- (c) malgré la décision apparemment favorable à P&W, celui-ci à décidé de ne plus poursuivre durablement la réalisation des aubes / "fan-blades" pour la soufflante du moteur GP7200 précité : une édition d'un "design" censé ne présenter aucun risque d'enfreindre les brevets de RR va être adoptée (cela nous dit quoi ? )
, ... selon l'esprit indiqué dans le cas mentionné en (2)(b) cl-dessus ; - (d) c'est P&W (et non pas RR, JAEC &/ou 'les cocus de MTU') qui a mis en péril le Consortium IAE avec la poursuite aveugle de son GTF : il n'y a pas besoin d'allonger cette liste.
Il convient de lire l'article ci-après à la lumière de ce qui précède :
Lien :
[Vous devez être inscrit et connecté pour voir ce lien]
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DATE:24/05/11. SOURCE:Air Transport Intelligence news
Bombardier confident Republic will stick with CSeries order
By [Vous devez être inscrit et connecté pour voir ce lien]
[Vous devez être inscrit et connecté pour voir ce lien] is confident that Republic Airways Holdings will remain a customer of its Pratt & Whitney PW1524G geared turbofan-powered CSeries, despite a decision by the Frontier Airlines parent to put a place holder deposit with [Vous devez être inscrit et connecté pour voir ce lien] for the re-engined A320neo.
"Confident" ? Bombardier peut-il vraiment avoir confiance ? "Read on " / 'voir ci-dessous' !
"We talk to Republic regularly. They might choose to buy a bigger A320 geared turbofan product, not unlike what [Vous devez être inscrit et connecté pour voir ce lien] recently did. So there is a place in an airline for a CSeries below 150 seats and an A320 above 150 seats. So if Republic were to do that - I don't know that they will - that would not surprise me," Bombardier Commercial Aircraft president Gary Scott told ATI and flightglobal last week on the sidelines of a pre-[Vous devez être inscrit et connecté pour voir ce lien] briefing in Geneva.
Scott added that Republic "tell me constantly that they're very happy with their selection of the CSeries. They believe in it. They believe in the technology...I think they'll stick with us."
Republic a appris les "clauses revolver" et "de switch'', ... dont bénéficie LH (et la "clause revolver" dont bénéficierait la filiale SWISS). Les dirigeants savent que, 'en cas de pépin' (on n'a pas besoin de faire un dessin) il est possible de revenir à une solution "legacy", avec les combinaisons "sharklets" + moteurs CFM-56 ou IAE V2500, ou d'appliquer le "switch", pour abandonner le GTF et aller vers le LeapX !
En ce qui concerne le CSeries, il n'y pas un tel ensemble de solutions rapides et pragmatiques, en raison de l'exclusivité de la motorisation GTF de P&W !
In February 2010 Republic ordered 40 CSeries CS300s, bringing to 90 the total number of CSeries firm orders secured by the Canadian airframer. Fresh orders are forthcoming, assured Scott, and will likely include a launch operator. The CSeries is expected to enter into service in late 2013.
On verra !
Vraisemblablement, il y aura un paquet de "clauses revolver", aussi ! ;)"As I mentioned before many times, we had like a handful of customers [with whom] we're in advanced discussions. We probably have two handfuls now. So I have little doubt that in the very near future we will be announcing additional orders and most likely we'll have the first operator in one of those announcements."
SEVRIEN- Membre
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Re: Republic Airways : RW : RPA
par Jeannot Mer 29 Juin 2011, 19:52
La puissance de "l'environnement" GE ou comment emporter des marchés.
[Vous devez être inscrit et connecté pour voir ce lien]
Du déjà vu ! Non ?The GE Powerhouse and how it wins deals
Those of us who are intimately familiar with commercial aviation will find this as no news. For those who don’t deal in this business every day, this will provide a better understanding of how deals are won in aviation.
This is the story of the GE Powerhouse and how family ties combine to enable GE Aviation and CFM International to win deals that might otherwise go to competing engines.
None of what we’re about to tell you is to suggest that the GE/CFM engines are inferior (though, obviously, some might dispute this), because they are superb engines. But a telling comment came from CFM’s Sandrine Lacorre, product marketing director, who said at a UBM Aviation conference, “What we can’t do technically, we will do commercially.”
[Vous devez être inscrit et connecté pour voir ce lien] and [Vous devez être inscrit et connecté pour voir ce lien] beat us slightly to the punch on this thesis, but neither went in-depth with what we’re about to describe. And Let’s be clear: we are in no way suggesting or implying criticism of GE or CFM; this is simply a report of “how the game is played.”
We’re going to focus on last week’s Republic Airways Holdings order for 40 Airbus A319neos and 40 A320neos. CFM LEAP engines were selected, which contrasts with the PW GTF engines on Republic’s previous order for 40 firm and 40 options for the Bombardier CSeries. The market believes Republic will cancel the BBD order; Republic says it’s intact. One would have thought that RC would have ordered GTF for the neos for commonality. But the Airbus deal was wrapped up in a financial restructuring package for Republic’s subsidiary, Frontier Airlines, which is headed toward financial disaster. We expressed our thoughts as to why in [Vous devez être inscrit et connecté pour voir ce lien], under the Bombardier section.
To understand how CFM is well positioned to win deals, one must first understand the make-up and philosophy of GE’s aviation units. There are several but the three relevant ones to this story are:
- GE Aviation, the maker of the big aircraft engines for wide-body airplanes. GE Aviation also includes its engine MRO and services/parts units;
- CFM International, the joint venture between GE and France’s Snecma. CFM is the sole-source supplier for the Boeing 737 and shares this role on the A320 family. Like GE Aviation, CFM offers after-market MRO and support services (actually through GE). CFM is developing the LEAP engine (the “X” has been dropped from the formal name) for the A320neo, the C919 and will be in competition to power Boeing’s new airplane; and
- GECAS, which stands for GE Capital Aviation Services. This is the mega-lessor with around 2,000 airplanes owned and under management.
GE offers customer financing for airlines and usually “parks” the deal in GECAS, though not always. At one time GECAS was considered the financier of last resort, but this was in the heydays of the 1980s and 1990s when many airlines were investment grade credits and the poor credits could find financing only at GECAS, with its expensive pricing in lease rates and fees. As the airlines overall became worse credits and when capital markets began to contract, GECAS increasingly became a more common source of financing, mostly in the form of operating leases but sometimes in the form of finance leases.
As a matter of policy, GECAS will generally only originate deals on airplanes operating GE engines if there is one offered so as to not enrich the coffers of PW or Rolls-Royce. In the secondary market, GECAS is more willing to do deals involving airplanes with non-GE engines; or if such airplanes are part of a larger transaction. GECA has a large portfolio of Boeing 757s, which are powered by RR or PW engines, for example.
Finally, GE corporate has a policy that it wants to be #1 or #2 in every market it serves.
The history of Republic
As we noted, both before and after the Air Show, Republic’s financial condition is tenuous, dragged down by the sorry performance at Frontier Airlines. Frontier is squeezed at Denver by United and Southwest; and at Milwaukee by AirTran, which was acquired last month by Southwest but remains AirTran for another year, and by Delta. No city has ever been able to support three hub carriers and few support even two. The original Frontier Airlines went bankrupt facing United and Continental Airlines (which itself later abandoned Denver as a hub). An entirely new airline adopting the Frontier name came along a decade later and created a good if small alternative to giant United, whose service was so bad that Colorado residents were aching for a travel option.
For a variety of reasons, Frontier declared bankruptcy a few years ago. Southwest, which by then had begun service to Denver, made a bid to buy Frontier but its pilots squelched the deal. Republic bought Frontier and took it out of bankruptcy.
Midwest Airlines, which had carved a niche in Milwaukee before failing to respond properly to changing market conditions, was sold in a bidding war to Republic which merged Midwest into Frontier. AirTran was the losing bidder and went ahead to begin over-laying service vs. Midwest.
Republic acquired the two airlines in a bold move to diversify its reliance and destiny on major carriers. RC was, until the acquisitions, simply a regional service provider. Some questioned the moves strategically, some questioned the move for Midwest specifically and some thought RC was nuts to take on UA and LUV in Denver. And all pretty much turned out to be correct.
As Frontier’s fortunes declined, the very existence of RC was threatened. In came The Seabury Group, a consulting firm that specializes in corporate restructurings, in or out of bankruptcy. What transpired is the deal that became public last week.
The Republic Deal
Republic CEO Bryan Bedford publicly said the very viability of Frontier was at stake and on the most recent earnings call that $100m in cost cuts were needed. What emerged was “classic Seabury:” employee concessions, vendor cuts, restructuring airplane deals. Republic’s 8K, a required filing with the US Securities and Exchange Commission, outlined the broad stokes of the deal. The 8K is reproduced at the end of this post.
What’s important in the thesis of this post is what the RC spokesman said upon the announcement of the Airbus deal (CFM offered “great incentives” for the deal) and the GE family role: CFM offered deals, GECAS cut lease rates, CFM cut financial terms of the deal with the CFM56 on the current Airbus fleet; and separately, the credit agreement with Airbus Financial Services was also amended.
This ability to provide a broad, comprehensive GE Family deal–whether in a financial restructuring as with Republic or in a standard transaction that includes aircraft leases, goods and services and the engine selection, is a major advantage that neither PW nor RR can match.
The Airbus/CFM deal keeps Frontier–and Republic–alive for now. The Airbus deal, frankly, makes no sense at all outside of it being a rescue package. We don’t see the need for 80 firm orders of new airplanes at RC on top of the 40 firm and 40 option previously entered into with Bombardier, and we certainly don’t see the need for 120 firm orders of mainline jets. While people are questioning whether RC will cancel the CSeries order, the larger question should be, “Will Frontier be around to take delivery of any of these airplanes in 2015/16?” We have our doubts.
RC’s deal with the pilots means RC is reducing its stake at Frontier to a minority position, and market information is that RC is trying to peddle the airline altogether. Given Frontier’s market position against United and Southwest in Denver and AirTran/Southwest and Delta in Milwaukee, we think Frontier is a goner–the only question is how soon.
As for stand-alone engine/services packages that don’t involve restructuring or lease rates, “buying” market share is pretty common. Although CFM told our partner, Addison Schonland of AirInsight, last week that it doesn’t “buy” deals, there is solid evidence to the contrary. David Cush, CEO of Virgin America, said GTF was ahead until CFM came in with an economic package [Vous devez être inscrit et connecté pour voir ce lien]. There’s the Republic deal. And there’s the comment from CFM’s Lacorre, noted above.
In the battle between PW and CFM for neo orders, CFM’s large, installed base vs. the PW indirect share through the IAE consortium for the V2500 engine means a huge advantage for CFM to cut package deals for previous MRO and financing packages, as with Republic. Where GECAS leases aircraft to the airline, or may take on neos in a future financing for the customer, CFM can offer a “family package;” and if the airline needs GECAS for financing, the GE policy of buying only airplanes with GE engines forces a decision in favor of CFM’s LEAP engine.
CFM’s LEAP-X engine clearly fell short of fuel burn vs. the GTF until it was revamped, after losing every competition in early going. After revamping the engine to narrow the fuel burn gap (depending on who is doing the talking), coupled with the muscle, the resources, the incumbency and the family packaging, CFM came roaring back at Paris.
We expect going forward CFM will have a larger market share for these reasons. But there is also no question that PW is back as a viable engine provider in the single-aisle catergory.
Republic Airways 8K SEC filing:
In connection with the term sheet the Company entered into (i) an amendment to the Credit Agreement with Airbus Financial Services, dated as of October 30, 2009 between the Company, Frontier and Lynx Aviation, Inc., a subsidiary of the Company, and (ii) an amendment to Frontier’s purchase agreement with Airbus.
On June 21, the Company entered into a memorandum of understanding with CFM International, Inc., related to the selection of the LEAP-X engine on its Airbus NEO order. The MOU, which is subject to final documentation, covers, among other things, a fuel burn guarantee, future spare engine pricing, and a reduction in the overhaul cost of existing Airbus engines.
On June 21, the Company also entered into a term sheet with GE Capital Aviation Services LLC (“GECAS”) to amend the terms of certain A319 leases between Frontier and GECAS. The parties agreed to, among other things, the return of four Frontier A319 aircraft to GECAS during 2012. The remaining 18 A319 GECAS leases will each be extended for a period of 3 years and the average monthly lease rate will be reduced. The term sheet is subject to, among other things, final documentation and approval by GECAS’ board of directors.
[Vous devez être inscrit et connecté pour voir ce lien]
Jeannot- Membre
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Localisation : Vexin 78
Re: Republic Airways : RW : RPA
par Jeannot Mar 05 Juil 2011, 09:33
Quelques petits soucis viennent troubler la commande De Frontier Airlines du Bourget
[url=http://www.aviationweek.com/aw/generic/story.jsp?channel=comm&id=news/awst/2011/07/04/AW_07_04_2011_p40-342688.xml&headline=Troubles Cloud Frontier Airlines Paris Order&next=0][Vous devez être inscrit et connecté pour voir ce lien] Cloud Frontier Airlines Paris Order&next=0[/url]Troubles Cloud Frontier Airlines Paris Order
Republic Airways Holdings plans to acquire 80 Airbus A320-family NEO (new engine option) aircraft and as many as 80 Bombardier CSeries aircraft for its Frontier Airlines low-cost subsidiary, but these deals should include an asterisk.
Frontier is struggling just to remain afloat and Republic might not continue to own it. With the first CSeries not scheduled for delivery until 2015 and the first NEO in 2016, the uncertainty surrounding Frontier and its future ties to Republic makes those orders suspect.
Republic acquired Frontier in 2009 as part of a strategy to expand beyond a regional carrier, fixed-fee flying business it saw as destined for stagnation. But now Republic is engaged in a restructuring of Frontier that Republic CEO Bryan Bedford says is needed to keep the low-cost carrier “viable.”
Frontier recently dropped to third in market share in Denver (as measured by passengers carried), with Southwest Airlines surging past it to become number two to United Airlines, and Denver is the stronger of its two hubs. (The other is Milwaukee, the home of Midwest Airlines until its acquisition by Republic and integration into Frontier.)
In the first quarter of 2011, Frontier lost $55.2 million before taxes, pushing Republic into a loss despite the $17.6 million pre-tax profit posted by its three regional airline subsidiaries. Such losses at Frontier “are unsustainable and would result in the eventual liquidation of the carrier,” Republic says.
During Republic’s first quarter earnings conference call in early May, Bedford told analysts that Frontier needed $100 million in cost-cutting and other annual “financial improvements” to make the low-cost carrier profitable; by mid-June he had raised that figure to $120 million.
Bedford says Frontier already has made fleet and network changes that will contribute $25-30 million to that goal. It has pegged another $25 million in labor cost savings, and came closer to that target in June by reaching an agreement with the Frontier Airline Pilots Association (FAPA) to amend the pilots’ union contract.
In the deal, the pilots allow the airline to defer two upcoming pay raises for five years, cut Republic’s matching contributions to 401(k) retirement plans and reduce vacation and sick day accruals.
In exchange, the pilots are slated to get an equity stake in Frontier valued at $39.3 million, as well as profit-sharing. But that is not all. Republic says it has changed its business strategy to have Frontier “ultimately operate as a separate corporate entity.”
Under the amended agreement with FAPA, Republic will maintain separate Frontier websites for all sales, operational and recruitment purposes; further separate the Frontier management structure to include appointing a separate Chief Operating Officer and an independent director of labor relations; and create separate Frontier human resources and payroll departments. It also plans arms-length agreements with the regional subsidiaries for use of their aircraft at Frontier, as if the Republic subsidiaries were separately owned and contracted airlines.
Republic also agreed to make a “good faith” effort to reduce its stake in Frontier to 49% by the end of 2014. The subsequent board would include a majority of members who are not Republic Airways affiliates, including one member selected by Frontier pilots.
To even get that far Republic needs to complete its Frontier restructuring. The pilot deal—rushed through the union ratification process in a week—is part of what seems to be a complex series of steps in the effort.
Bedford says the deal with pilots will allow the Republic board to proceed with an attempt to use debt offerings or other financing methods to raise $70 million for Frontier, which is “critical to fund the airline this coming winter.” As of June 29, that had not yet been done.
He also says Republic will be seeking similar amendments to 401(k) plans and vacation and sick pay benefits in other Frontier labor agreements—along with a method for those employees to obtain equity and profit-sharing.
In a way, the Airbus order is part of the restructuring, too. In the deal with pilots, Republic agreed to place a firm order for 80 narrowbody aircraft for Frontier by Sept. 30. The NEO order accomplishes that, if the letter of intent signed in June is finalized, and it also provides some financial relief for the carrier.
In connection with the Airbus term sheet for the NEOs, Republic amended an October 2009 agreement under which Airbus Financial Services provided a $25 million loan to Republic and its Frontier subsidiary. Republic has not yet disclosed how it amended the loan, which it had already begun repaying.
Regarding its memorandum of understanding with CFM International to use its Leap-X engine for the NEO, Republic says CFM agreed to a reduction in the overhaul cost of existing engines on Frontier’s Airbus aircraft.
Amid all of this restructuring, there is another complication: bad blood between the pilots at Frontier and Republic’s regional subsidiaries that could further muddy the waters.
In late June the International Brotherhood of Teamsters won an election to represent all of the pilots employed by Indianapolis-based Republic Airways. The Teamsters already represent pilots at Republic regional subsidiaries Republic Airlines, Chautauqua Airlines and Shuttle America.
Most Frontier pilots wanted to keep their own representation—their union had opposed even having the vote—and the Teamsters acknowledge creating a unified group will not be easy. The vote’s outcome (about 69% of Republic’s pilots chose the Teamsters) means FAPA no longer represents Frontier’s pilots as a union, but it plans to continue as an organization to give voice to their concerns.
Republic insists the vote will not impact the restructuring of Frontier. By pushing through the ratification so quickly, Republic and FAPA got the contract in place before the union representation vote concluded. But lingering ill feelings from the representation campaign, including a Frontier pilots’ lawsuit to try to block an upcoming seniority list integration, may yet cause problems.
The Teamsters are still trying to negotiate a new contract for pilots at Republic’s regional subsidiaries, under federal mediation. Pat Gannon, executive council chairman for Teamsters Local 357 at Republic, says the union is aiming to conclude a deal this year. After that it plans to file for contract amalgamation negotiations, after consultation and joint planning among the pilots of all Republic subsidiaries, including Frontier.
When the time comes to talk about a single contract for everyone, “we’ll have to evaluate [the FAPA deal] and make a decision about keeping it in place,” Gannon says.
Gannon says the Teamsters will try to mend fences. He describes the Frontier pilots as a “good group of guys,” which makes him optimistic even though he acknowledges it will take time for them to trust that the Teamsters representatives “have the interests of the entire group in mind.” Only a truly unified group can be successful, he says.
FAPA President Jeff Thomas, how-ever, says he does not know if reconciliation is possible, and he still describes the union representation vote as a “hostile action” by the Teamsters.
“We’re just going to have to see what comes from all this,” he says. That is a comment that could just as well apply to the future of Frontier.
Jeannot- Membre
- Messages : 10002
Localisation : Vexin 78
Re: Republic Airways : RW : RPA
par SEVRIEN Mer 09 Nov 2011, 00:30
Bonjour, chers tous. Merci, Hugot2 !
Et pas de CSeries supplémentaires ("CSeries" pour Republic et A-NEO pour "Frontier" ?) !
On va finir par nous croire ! Et LeapX n'est pas en train de pleurnicher et courir après le VAN ("Variable Area Nozzle") ! ;)
Et on a bien noté : LeapX et non pas GTF !
Et pas de CSeries supplémentaires ("CSeries" pour Republic et A-NEO pour "Frontier" ?) !
On va finir par nous croire ! Et LeapX n'est pas en train de pleurnicher et courir après le VAN ("Variable Area Nozzle") ! ;)
SEVRIEN- Membre
- Messages : 20088
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