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  SOUTHWEST AIRLINES’ BID TO ACQUIRE FRONTIER NOT SELECTED AT AUCTION

SOUTHWEST AIRLINES’ BID TO ACQUIRE FRONTIER NOT SELECTED AT AUCTION

The following information was issued today by Southwest Airlines via news release:

SOUTHWEST AIRLINES’ BID TO ACQUIRE FRONTIER NOT SELECTED AT AUCTION

Carrier’s Refusal to Remove Labor Requirement Key in Decision

Southwest Airlines confirmed today that its bid to acquire Frontier Airlines was not selected.  Southwest submitted a bid of more than $170 million to Frontier Airlines on Monday, Aug. 10, 2009, in accordance with the procedures established in the U.S. Bankruptcy Court for the Southern District of New York. 

“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 Kelly, Southwest’s Chairman of the Board, President, and CEO. “We have a mission to preserve and protect our Culture and the best interests of our Employees, Customers, and Shareholders.  This was a great opportunity that required us to act fast.  A lot of people worked very hard with every intention of making this work.  We were fortunate to be in a position to examine the acquisition to see if it was the right decision for Southwest Airlines. We chose not to amend our bid to remove the labor requirement, a key reason our bid was not selected.  Our congratulations to Republic Airways and Frontier Airlines.”

As stated in its initial statement of interest on July 30, 2009, Southwest said there would be several contingencies to be resolved for a deal to go through.  Key in its position, Southwest was not willing to remove the need for the two Pilot Unions to reach agreement. Southwest says its Culture and relationships with its Employees are too important to compromise.

“Southwest remains committed to serving the Denver market with our low fares and excellent Customer Service,” Kelly said.  “We began serving Denver in 2006 with just 13 flights and have grown to offer 112 nonstop daily flights today.  We are very pleased with the response we have seen to our service and growth in Denver, and we will continue to compete vigorously in the market.” 
 
One of the contingencies in Southwest's proposal was that labor groups from the two airlines would need to reach an agreement on how the two Pilot Unions (SWAPA and FAPA) would work together.  Despite a good faith and diligent effort by all involved, including the top leadership of the Southwest Airlines Pilots Association (SWAPA) and the Frontier Airlines Pilots Association (FAPA), who labored long into the night, the two unions were not able to come to an agreement before the auction deadline.  As a result, Southwest’s bid was deemed unacceptable.

Frontier filed for bankruptcy court protection in April 2008.  Southwest submitted its initial indication of interest to acquire Frontier Airlines on July 30, 2009, which gave the carrier an opportunity to engage with Frontier in the due diligence required to determine the scope of a binding proposal.  Southwest submitted a bid of more than $170 million to acquire Frontier on Monday, Aug. 10, 2009. 

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Comments

I'm not upset by this news, but in the long run, I think F9 Employees may have regrets.

Noooooooooo! Hope all turns out well for both airlines, but what a bummer.

Even though we did not get Frontier I'm thrilled to see SW trying to grow, not standing still and fishing for options. You will never grow doing nothing. This was an opportunity and SW went right at it. I'm proud.

Gary it's ON and you are rocking the boat!

Good decision. Southwest culture is the competitive advantage and you don't want to lose it!

Sort of a surprise to me. With Republic having absolutely zero experience in operating an airline (Republic only does regional service and follows protocols of carriers they are contracted for), I do not by any means think that Frontier and its' employees have any greater chance of survival than they would have had they been acquired by Southwest Airlines. Nonetheless, I wish everyone luck at Republic and Frontier. I caution, however, that the status quo will not lead to prolonged success of Frontier Airlines. Change is necessary in order to grow, secure financing from creditors, and provide return to shareholders. Rest assured, changes will still happen even under Republic's rule.

bummer

So sorry to hear that Frontier Airlines rejected Southwest Airlines bid offer. Best of luck to the winner. We all know the extreme friendliness and professionalism shown by
all Southwest Airlines employees over the years. I, too am one of the many passengers
who prefers this company when it comes to destinations, prices, schedules, etc.

" Keep on travelin' ! "

What is there to regret? Not having to re-apply for my job and losing all my seniority?

CHANGE IS ALWAYS GOOD. This will give F9 and Republic a chance to grow together and offer more competition and more options. I like options!

Excellent!

Why mess around with a fancy mega merger, which you'll kick their butts in the marketplace anyway. They are bankrupt, because they are terrible. You make gobs of money because you rock.

Why would you even want to deal with them. What a waste of time even starting down the path. Just keep running your great airline.

You know what this means....

BIG fare sales and continued intense competition on routes to/from DEN!

Lets get to work on those near-International routes.. on SWA metal.

As a longtime Frontier flyer and an avowed avoider of Southwest, I couldn't be happier.

And I'm glad the pilots won't be forced to take pay cuts and sit in the jump seat had they been absorbed by Southwest.

I applaud SWAir for sticking to its core values and competencies. The airline continues to set not just examples, but standards for how to run a company, let alone an airline! This is why SWAir is content for so many business studies and why I regularly use the airline in examples in classes I teach about service deliver and cultures of excellence.

Good luck Frontier and Republic. We'll see where Frontier Pilots are 2 years from now. Filling out applications for other airlines.

Southwest is about to pounce all over Denver. They'll never survive. Southwest has been cutting flights system wide so there is a surplus of SWA pilots, FA's and aircraft to increase to 200 Flights in less than a year or maybe 18 months.

I believe the better deal was selected! I agree with “F9 for” -- where is the regret? I am going to enjoy not having to re-apply and start over. Go F9!!!

To the guy that avoids SWA --

The Frontier pilots are going to be taking a pay cut since Republic won. The most senior pilots at Republic make less than a First Officer that has been with Southwest for around 2 years.

I am glad that the general loyalty for Frontier are people that aren't business savvy. This is going to end up hurting them in the long run, but oh well... sucks to be them.

I love SWA, and I hope that they show by load factors and their profits that they can be profitable, without the protection of Chapter 11 bankruptcy protection.

I'm glad to see it's not about who has the most money. I'm so proud of Frontier and the creditors for putting the employees first! Congrats Frontier and Republic!

US labor law, specifically McCaskill-Bond, forces binding arbitration if the two pilots' unions can't agree. Southwest was correct to refuse that risk, requiring an agreement up front.

Does Republic now have the option to sell gates and 737's to Southwest with no strings attached? This might cost more money than Southwest's bid, but it might be a win-win for Republic and Southwest. It would also be a huge loss for the Frontier pilots who gambled that Republic would provide better job security than Southwest.

Fuel prices are heading up again, and I wonder whether customers will keep buying tickets on a carrier with nothing stronger than Republic backing it. It could be a difficult fall for Frontier and the rest of Republic.

nsx at flyertalk.com's Southwest forum

I am saddened to learn that Southwest and F9 were unable to come to agreement. Many people here in Atlanta, GA, were looking forward to the opportunity to fly with Southwest again, having moved to this area from areas serviced by Southwest. Their customer service is excellent, as are their prices and no-nonsense approach to running an airline. I believe Southwest's presence at Hartsfield-Jackson Atlanta International Airport would have provided a little more leverage to bring costs down among the other carriers. We will continue to hope that Southwest will one day come to Atlanta, and many other places not yet served by this great carrier.

Best of luck to F9 and Republic in their future relationship.

OH IT'S ON!!!

this is great news as sw made no secret in their proposal that they had no intention of keeping any frontier employees had they of been able to cannibalise frontier. southwest has been losing millions of dollars in trying to compete with frontier in DEN, all one has to do is look it up. they figured if you can't beat them, buy them. frontier will continue to be one of the best low fare airlines out there and southwest will continue to be the walmart of the airlines industry.

As much as I was excited to see my company try to expand and make a bigger presence in Denver, I am very pleased that the company put the employee's considerations first. It was and always will be the culture that makes Southwest Airlines thrive. Kudos to Gary Kelly and his staff for trying not to force a marriage that would of ended up in disaster for all the unions and employees involved with both airlines.

Everyone is a winner here. F9 keeps its culture. WN keeps its culture. DEN remains a truly competitive market with THREE airlines not a sort of duopoly like like PHX and PHL. YX will get better aircraft for MKE-west coast routes and remain competitive with FL and WN.

You can say all you want about Frontier being weakest of the three at DEN and it's probably true. But WN wanted this as an asset play and it should not come as a surprise that there was no labor agreement between WN and F9. This should really read integration agreement where F9 pilots would lose their seniority in exchange for WN providing "job security" by training selected pilots on 737s as the beloved Airbuses disappear. F9 gets to remain pretty much F9. WN won't have integration hassles. If the Morris Air integration was a mess with their all 737 fleet and being a virtual copy of WN just based in SLC what do you think absorbing F9 would have looked like?

Given the fact that Southwest employees are among the highest paid in the industry and that the company has the longest record of profitability and stability, I'm surprised that Frontier employees would be so thrilled about the news of being purchased by a less stable and reliable airline. I was also surprised to see a quote in the Republic press release that said "Now, we have to turn our attention to the important work of integrating two great brands: Frontier and Midwest Airlines, which enjoy strong loyalty in Denver and Milwaukee.” That doesn't make it sound like Frontier will be staying the same old Frontier, as many of the Frontier employees have said they expected. I'm guessing there will be many challenges ahead, but it will be interesting. I wish all the employees well...and good luck. This industry needs it.

Best news I've heard all day, I find it funny that Southwest employees are afraid of their "culture" and "values" being in jeopardy if their bid had been a success ... heh you guys can keep your khaki shorts and white tennys ; ) They obviously don't know Frontier very well : ) And I'm glad our pilots kept their dignity and respect during the labor talks, besides everyone knows the Airbus is a more comfortable ride ; ) And for those nay sayers who said Frontier wouldn't be around all those months ago, how's 9 consecutive months of profit and an exit partner sound? Cus that's music to my ears... (i'm givin' you SWA guys a hard time, i'm just glad this is over with!) I look forward to our ongoing friendly rivalry at DEN...

I wonder how many frontier pilots have active job applications with southwest airlines as i write this

I wonder how many frontier pilots have active job applications in at southwest airlines while i write this

Did they think that they Frontier pilots would just sit silently as their names were put at the bottom of the seniority list? Hmmm... Usairways and American West are still trying to work out their pilot seniority list years later and the "boys at Dallas" thought this could be done in a couple of days? Seniority lists are 'everything' in the airline industry and something that airline employees will fight for--especially when it appears that it gives them some power. Hopefully it will work out for them in the longrun!

We are sitting here celebrating the survival of a great brand that is a whole different animal. The F9 culture is the only alternative to UAL in DEN for us business travelers. A SWA win would have been a great boost to UAL but a severe setback for us DEN travelers.

Hallelujah!! I am so thrilled to continue to have Frontier in Denver. They are a magnificent airline with excellent customer service and terrific employees. As a passenger, I look forward to the future!! In regards to the Frontier employees not having much of a future with Republic, I find that questionable as Southwest offered to layoff 150 pilots and staple the rest of the pilots to the bottom of the seniority list, and that is only the pilots. I cannot imagine what they would have done to the rest of the employees. It is just wonderful to see that arrogance and greed has finally bit the big one!!!

The press releases from southwest are very professional and polished. SW employees may have decent salaries, but it is hard to win over passionate employees when they inform them in a meeting that very few (if any) other than the pilots group would be offered employment with Southwest. Especially the union represented groups whom would have had to bid for stations. Denver is a desireable location, what jobs that would have been created would have gone to senior employees and not necessarily those already here. The republic deal at leasts provides some respite from the gallows that was offered by the company. I respect that the CEO says it was too important for the employees for this to go forward, but he was never talking about integrated Frontier employees. That was apparent from the start.

Iam so glad that this is all over with. So I guess now since WN, ran around how they were so going to win. Well I guess you shouldn't put the cart before the horse. The main thing is that atleast our jobs with Republic look more promising. And all your worries about senority issues are now over with. Lets call a trues, F9 and WN are both good airlines they both give good customer service, and do what's important and that's taking care of the passenger. Why don't we all focus on that and instead of wasting company time, or your time writting pointless blogs that apperently dosen't change anything. Because it sure didn't decide the winner at the courts final decision.

HELLO!!!! This was a SELL not a merger. Their employees should be thankful a company like SWA would ever consider keeping them. Business is business. If no one bought them all their planes would be in the Mohave desert, not to say Republic won't send them there anyway. Why would you stay an Airbus pilot and the down grade later on to a RJ. That what's gonna happen. Republic won't keep the planes and they'll have a very small presents in DEN.

Sorry guys. This isn't the end though. What did AirTran do when they failed to buy Midwest? Expanded in MKE and updated their product on their own in a successful and profitable manner. You can still enter into the new markets you want to enter into from Denver, go to Atlanta and Charlotte, do near international, and implement regional feed. Just don't let this scare you back :) Thanks for doing such a terrific job on keeping everybody up to date, Paula, and best wishes to everyone at SW, F9, and RJET, you all deserve it.

Thanks, Max :)

How can you be so silly. SWA has been loosing money at an extreme rate in DEN only because Frontier is selling all the seats. Why do you think they wanted to destroy Frontier. HMMMMM, makes you want to think.

I agree with MAX--Paula, you've had your HANDS FULL with this one and you've handled it with your normal perfect aplomb. You ROCK, PB....thanks from all 34,000 of us! at SWA!!!!

Bill

No sour grapes or anything, but I will enjoy looking forward to seeing how Republic intends to run a real airline for the first time. Frontier pilots may have blown an excellent opportunity to get in with THE premier domestic airline in the United States and make substantially more money. I would bet that Southwest did not anticipate FAPA coming into this situation making ANY sort of demands at all. It seems to me that they were not coming from any real place of leverage, and would have been (and were) completely out of line in expecting SLI. Even a 3 year WN FO earns more than an F9 captain.. Well at any rate, Frontier pilots made their stand and I hope they will be happy with the results. Let's all revisit this topic in 2012 for kicks, what do ya say?

Congrats to F9 for keeping their company alive and not bowing to the pressure of SWAPA. WN kept saying they are concerned about the employee culture. Translation: we have to make sure all the pilots, and only the pilots are happy or we're out. It took a lot of guts for FAPA to say no we're not going to give up our entire career to start over, and by doing so also saved the jobs of many a mechanic who were told by WN you won't be coming along when we own you.

Sadly, pilots think that they are the only workers who make an airline run smoothly. And apparently so does GK. This sounded more like a pilot union merger than the purchase of a bankrupt airline.

I look forward to F9 continuing their operation and Denver and keeping WN from taking over. It's a good opportunity for Republic to create a stronger airline with strong employees with good character and morale, and nice clean airplanes with TVs and assigned seats instead of the cattle call rush by the sketchy folk trying to save a buck.

This also shows that being the highest paid isn't the only factor when considering quality of life at an airline.

No sour grapes or anything, but I will enjoy looking forward to seeing how Republic intends to run a real airline for the first time. Frontier pilots may have blown an excellent opportunity to get in with THE premier domestic airline in the United States and make substantially more money. I would bet that Southwest did not anticipate FAPA coming into this situation making ANY sort of demands at all. It seems to me that they were not coming from any real place of leverage, and would have been (and were) completely out of line in expecting SLI. Even a 3 year WN FO earns more than an F9 captain.. Well at any rate, Frontier pilots made their stand and I hope they will be happy with the results. Let's all revisit this topic in 2012 for kicks, what do ya say?

swa isnt doing well in denver at all that is why swa wanted to purchase frontier. frontier has posted profits the last 4 quarters. look what swa did to morris air employees and how they put ata out of business and refused to hire any of their employees great work culture.

http://www.usatoday.com/travel/flights/item.aspx?ak=68496411.blog&type=b...

I don't understand why Frontier employees feel confident that they will keep their jobs with Republic.

"Pilot labor expert and airline consultant Robert W. Mann said Southwest’s executives can’t be blamed for thinking that Frontier pilots would see the prospect of higher pay and potentially greater job security in the Southwest bid as attractive.

“Frontier pilots need to look at the facts,” he said. Republic has said it would operate Frontier separately from its other regional jet operations, but Republic replaced all the pilots and planes at Midwest Airlines when it bought Midwest this year and could do the same to Frontier’s operations down the road, Mann said. "

http://www.dentonrc.com/sharedcontent/dws/dn/latestnews/stories/0814dnbu...

YAY I GET TO KEEP MY JOB!!

Told you all last week that the pilots would block the deal. WN was going to basically liquidate F9 and that was the end of it. Again, we were counted out...and again..here we still are. To all the peeps bashing us, get over it, were winning in Denver and that's not going to change.

It's amusing how people are "confused" why were happy about Republic buying us. Really? Yeah..we are all very happy we get to stay employed w/o our charity fail interview with WN. Status quo now, making money in Denver, keeping our airbuses, keeping our jobs.

Our Pilots stood up for what was right, as did our MX group. We all thank you for that. To my coworkers who kept their head up for the last year and a half.....lol..now "It's On" lol.

This quote from a news story sums up my point that it's just about the pilots and no one else: "None of the other unions at Southwest have been asked to create an integration agreement with Frontier. "

“Frontier pilots need to look at the facts,” he said. Republic has said it would operate Frontier separately from its other regional jet operations, but Republic replaced all the pilots and planes at Midwest Airlines when it bought Midwest this year and could do the same to Frontier’s operations down the road, Mann said. "

Frontier is not a regional airline and Republic can't just step in and replace the planes and capacity that F9 has, like the Midwest situation. As for the pilots' contract that remains to be seen. But again, RAH doesn't have 600 Airbus qualified pilots milling around ready to take F9 jobs. Lynx may be a different story altogether, but the Lynx pilots are not protected in any way.

Southwest, is there a reason you are not posting all of the blogs here? Really, I know of few that were posted before some of the kool aid was posted, and...........nothing. Well, I guess this one won't get posted either.
Tommy

"Frontier said the plan calls for it and regional unit Lynx "to maintain normal operations" as a stand-alone Republic subsidiary. Because of that, Denver travelers may see little change. But the deal is huge for Republic."

I don't think F9 employees have to much to worry about now other than possible pay cuts.

Hey, Tommy -this is a manually moderated blog so sometimes it takes a few minutes for a comment to post, but I can assure you that all comments are being posted.

Yeah!!!! The awesome employees and the really cool animal tail Airbus 318's, 319's, and 320's have been saved from the evil clutches of southworst!!!! long live Frontier Airlines!!! Southwest's current leadership has changed this company from a very unique airline into just another airline. It's time to return Herb and Colleen to the helm and get Southwest's flight path changed back to the award winning one that existed prior to them stepping down. Southwest is losing millions per month in it's Denver operations, and god only knows how much is going down the drain at LaGuardia, markets which the prior leadership would have never either returned to or gone into.

Noooooooooo! What a bummer. When I heard that this would get SWA into the Atlanta market I was hoping it would happen. Since I moved to the Atlanta area 4 years ago I have missed flying on an airline that cares about their passengers and at a reasonable fare. They make the flight enjoyable and it was not always about an on time departure, several times they held the flight because the incoming connection was delayed.
I hope another opportunity comes up soon to get you in the Atlanta market!

I'm impressed with SWA for not amending the requirement for the pilots to come to an agreement.

Frontier pilots need to look at the facts,” he said. Republic has said it would operate Frontier separately from its other regional jet operations, but Republic replaced all the pilots and planes at Midwest Airlines when it bought Midwest this year and could do the same to Frontier’s operations down the road, Mann said.

RJET replaced the planes because YX's the MD-80s were large gas guzzlers. The 717s are OK for most of YX's routes except the premium West Coast routes. The E190s allow them to go MKE-LAX and offer two classes of service, they needed new planes. Expect YX and F9 to standardize to 318/319/320s (we'll likely see less 318s). The 717s will probably stay for a while since YX won't be able to dump them easily, unless FL needs them.

WOW! This turn of events is truly surprising. If news reports are correct, F9 pilots were offered an amazingly generous opportunity to come on board with Southwest. Their union turned it all down. Perhaps they thought they had some time for posturing before making a deal, but the clock struck midnight while they dithered. Now they (and everyone at F9) are out in the cold.

The idea that with Southwest out of the picture, everything can just go on with Peace and Joy at Frontier is pure fantasy. F9 is a failed business, which is why they filed bankruptcy in the first place. With Republic's recent history (think Midwest), F9 employees are now facing a bleak future.

Frontier has a fine product. In fact, they offer one of the best flying experiences around. (So did Midwest, until recently.) Those of us who really like F9 will continue to fly their planes, for as long as it lasts.

Frontier is famous for its tail animals. Is one of them a goose? In any event, their goose is now cooked. Thank you FAPA. Peace and Joy sans Southwest is a fantasy. You could have had LUV, which is real. But it is not to be.

Good luck to everyone.

F9 pilots were being selfish, not thinking about the ground personnel or MX. Southwest is working short in DEN. Temps from other stations are helping out. So if we bought F9 we would hire almost all the employees at DEN.

It looks like there some silver linings for all parties in this deal. Frontier gets to remain Frontier, at least for the time being. Republic pics up a great airline with renowned customer service which is now showing signs of profitability. Southwest got to poke around the books of another airline and learn lessons about Denver, international markets and regional jets (Lynx). And the biggest winner of all is United who won't have to face a stronger Southwest out of Denver.

If Southwest leadership decided that they liked enough of what they saw in the 10ish days of being able to look under the covers at Frontier, the game may not be over. Republic's market cap is just under $207 Million and they have around $100 million in cash / credit. Plus, they are providing Frontier with $40 million in operating capital so they can function tying up a large percentage of their assets. Southwest has a $6.85 Billion market cap and access to several Billion in cash / credit. They could easily just buy Republic and get Frontier, the regional jets and eliminate even more competition and not deal with binding arbitration of unions in bankruptcy court.

My guess is that things are not as cut and dry as they might seem.....

Southwest should respond with new non-stop service from Denver to Boston, seek additonal slots for new service between Denver and Laguardia, and add new service from Denver to Washington Dulles

What a relief SWA is not going to be involved in this deal. Southwest has been a strong company not having to use bankruptcy to show a so-called profit in a down market. It is easy to show a profit when you don't pay creditors.
The airline world is very competitive. SWA can take on the DEN market with customer service, low prices, and absolute determination.
Best wishes to Frontier folks...You work hard and I hope all goes well with Republic.

"I don't understand why Frontier employees feel confident that they will keep their jobs with Republic."

DUH, at least they have a better chance of keeping a job! Republic is a great company with a CEO that cares just as much about the employees as Gary Kelly or Sean Menke does. At least this way the pilots of F9 stood their ground knowing that 4500+ jobs were on the line with a WN buy out.

Republic replaced the Midwest aircraft because they were 40 year old dino's that sucked to much gas. Republic is on the way to changing they're business model by purchasing an airline that has continued growth potential. One that makes the competitors pissed because F9 does provide a better product which keeps WN from growing market share in DEN. Thats the only reason for WN bid was to eliminate the competition.

This was a win for the great state of Colorado, for all the loyal customers who continue to support Denvers ONLY HOMETOWN AIRLINE. This was a win for Republic who is now in the big airline business, which is something WN didn't want to see. And a BIG win for all the employees of F9. IT'S ON, show WN that they'll never be able to stake the claim as the hometown airline.

I don't see why you guys have to trash talk F9.. We won.. You lost.
This is the reason that I wouldn't want to be associated with southworst in the first place. I would rather be out of a job. You don't even know F9 employees but all you can do it talk down about us. It clear that we have been doing something right because we have been making money in Denver while you have been losing money. Hopefully there will be enough money lost that you will have to pull out of Denver for the 2nd time. Your people are so disrespectful for no reason at all.

And for the guy who said this:
"Excellent!
Why mess around with a fancy mega merger, which you'll kick their butts in the marketplace anyway. They are bankrupt, because they are terrible. You make gobs of money because you rock.

Why would you even want to deal with them. What a waste of time even starting down the path. Just keep running your great airline.

Jason — Thu, 08/13/2009 - 19:36"

GET A LIFE BUDDY and reconize that we make money, more then you will in Denver any day. People like F9 because we make them feel like we are a family rather then just a cattle call. Ask any of our passengers. The only reason that anyone would ever fly you is because of the price but then after they would regret it and come to F9. Honestly, I wouldn't even fly on you if it was free.

CONGRATS F9!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

CONGRAT TO REPUBLIC FOR BUTTERING THE DEAL, BUT YOU ALL DON'T KNOW IF YOU ALL WILL HAVE A JOB IN TWO YEARS. HOPE FOR THE BEST AND REMEMBER WN WILL ALWAYS BE AROUND AND LOOK FOR BETTER OPPORTUNITIES TO CONQUER. WE STRIVE TO BE THE BEST IN ALL THAT WE DO. ANALYST PREDICT WITHIN THE COMING YEARS THERE WILL BE THREE AIRLINES STANDING.WILL REPUBLIC BE ONE OF THEM OF THEM. SOUTHWEST WAS ANNOUNCED AS ONE

I am willing to bet Republic has no intentions of keeping Frontier. Get them at a good price, sell them off to umm someone like Virgin America. Virgin America was all in the news about wanting to purchase Frontier's Airbus, either from them or from SWA had we acquired them. I see Virgin America buying it all from Republic in the near future...bet the employees will wish then SWA's bid had won.

Paula,

Just a small comment. Maybe since this is all over we should close this thread for comments? It's really doing no one, F9 or SW any good having these horrible comments thrown out into the blogosphere when there really is no need anymore. Maybe those that feel they can say what they please with anonymity here will now seek another venue or activity. I'm thinking it's summer.... spend some time with your family and friends and stop wasting time writing hurtful comments. In other words, stop beating a dead horse.

Glad it's over and SWAPA and Gary Kelly have really shown what SWA is all about. SWA is a tight family. Good luck to Frontier and Republic, I wish everyone the best.

"SOUTHWEST WAS ANNOUNCED AS ONE"

Keep trusting those analysts. In the meantime I’ll put my faith in a better product.

Why would any F9 employees have regrets when WN made it clear that their intent was to eliminate everything about Frontier. We have made sacrifices to work for less and give F9 all we have to keep it going and now, this is the result, F9 wins. No regrets here.

To all the F9 supporters and FAPA...Congrats on Keeping your jobs and Keeping your animals and Keeping your unique brand. Now, do us all a favor...make sure RJET does a better job of Keeping your cash balances up when oil hits +$100 or WN will be picking through the next yard sale in Denver offering 5 cents on the dollar.

Here's hoping you never have to reconcile your current joy and since of self controlled destiny with the ancient chinese proverb, "a bird in the hand is woth more than two in the bush". Should you have to learn this lesson in the next few years, feel free to come back to the blog and express your remorse.

This is the best options for all parties involved. Frontier pilots didn't want to be on the bottom of the seniority list and I'm sure Southwest pilots didn't want to have the animosity between Frontier and Southwest pilots (like the Delta and Northwest pilots have because of their merger). This decision will only better the people of Denver because now they will have 3 major carriers to choose from with more destinations and more low fare options with the 3 airlines battling to give the lowest fares. I think overall, Frontier employess will benefit the most because they are guarenteed a job, whereas, if Southwest bought them, 20% would lose their jobs immediately after the deal was closed and the rest would have been phased out over a 2 year period. The only employees that would have possibly made it after those 2 years are the pilots and they would have been at the bottom of the seniority list. So essentially 4,400 other employees would have been out of a job in less that 2 years.

I know for a fact that if SWA won the auction,120 F9 pilots would have been furloughed immediately at the closing of the transaction. Every other F9 pilot would likely be furloughed within the next year or two after they had been stapled to the bottom of the SWA pilots list. Apparently, only certain employees at SWA are really important to them. That is too bad. The reduction in growth at SWA, and the decline in the effectiveness of their business model probably will lead to slower growth for them. I would have been perfectly happy to work for SWA but am certain my job security, along with that of every other F9 employee, is much better with RAH than SWA. Good luck to all of us in this business. Even the mightiest have their days, just ask the employees at UAL, DAL, NWA, CAL, Pan Am, Eastern, Braniff, and all the other giants that have hit the wall.

I respect and agree with SWA's decision regarding the labor contract and the fact that Frontier pilots may have preferred a different route. It would have been nice for those of us in the flying public but it was not meant to be in this case. Still, at $170 million, a great opportunity lost for SWA.

I am and will remain a very loyal SWA customer. I trust and hope that the excitement generated over this opportunity gives SWA management the confidence to re-double their efforts to provide an ever expanding product offering to folks like me. To that end, congratulations on the 4 additional markets added this year. Simply a fantastic way to spread your existing fleet and add to your product.

Among future opportunities:

- "near international service". Gary, find a profitable way to get your planes to places like Cancun, San Juan, and Toronto, among others. I know all about your codeshare. That said, I HATE having to leave you to get that service. I know there is red tape associated with travel out of the country or over open ocean. Work hard and cut through it.

-"Q400 (or similar) feeder service". I know you can't fly 737s cost effectively into smaller locations. Lynx looked very interesting to me into Denver. Study that concept for your largest markets like Chicago Midway. Are there places in the country where folks simply can't choose your product because they are too far from an existing SWA airport? Montana, the Dakotas, northeast Wisconsin, the UP of Michigan, South Carolina and Georgia (without ATL) come to mind. Give those potential customers a viable option to get on a "baby" canyon blue plane if you can find a way to make a dime or two.

And thanks so much for the blog and ongoing public commentary. i actually feel like I'm part of the "family" while I'm nothing more that a Rapid Rewards passenger that flys maybe 10 round trips a year, all on LUV to the extent possible by the way.

BTW211 says:

F9 pilots were being selfish, not thinking about the ground personnel or MX. Southwest is working short in DEN. Temps from other stations are helping out. So if we bought F9 we would hire almost all the employees at DEN.

The VERY few people that would have been taken on by WN (after interviews and starting back at the bottom) would have only been a handful of gate agents and ramp personel. Over time as the Airbus (a much better aircraft then the 737) was phased out a few pilots would have been hired and AGAIN have to start at the bottom. They would have no need for line MX mechanics, and would have surely gotten rid of ALL our heavy maintenance personel since WN farms out all their heavy maintenance. In time DEN would have probably become a line station that would have been manned by WN mechanics and none from F9. All the reservation people and the folks at our headquarters (IT, HR, ENG, MCC, OPS, ECT.) would have all been let go.

It's a win for DEN, our customers, and the employees of FRONTIER Denver's ONLY HOMETOWN Airline.

This is sad news to hear... I was hoping that Southwest would be successful in this acquisition. Cheers!

BTW211, You say F9 pilots were being selfish. I don't think so. Since they decided to fight and not just lay down and take it. Yeah so you are right they are selfish they just saved the jobs for every single F9 employee in all stations. Iam so glad they were selfish. Iam glad you all chose not to be selfish and fight for your rights and for the company.

Isn't it interesting that the majority of the F9 supporting blogs have the same name...Anonymous!!!!

<<>

I didn't know Carmac the Magnificent was on this blog

"BTW211, You say F9 pilots were being selfish. I don't think so. Since they decided to fight and not just lay down and take it. Yeah so you are right they are selfish they just saved the jobs for every single F9 employee in all stations. Iam so glad they were selfish. Iam glad you all chose not to be selfish and fight for your rights and for the company."

Let's not kid ourselves. F9 pilots were not concerned about everyone else's job. They were concerned about their own seniority number and seat. Bottom line. It's always and always will be about the pilots. I didn't hear about GK worrying if the MX or DX unions were able to work out a deal.

I'm divided at the result. I would have liked to have seen what Southwest would do at ATL, DCA or with more slots at LGA. Even more exciting was the possibilities of Southwest using Lynx to enter smaller markets. Still, I'm happy that my second favorite airline (next to Southwest) at least has some prospect at surviving (while Southwest was on record that Frontier would not have lasted longer than two more years)

ONCE AGAIN HOW MANY FRONTIER PILOTS HAVE ACTIVE APPLICATIONS IN WITH SOUTHWEST WOULD YOU BE SURPRISED IF IT WAS OVER 50% I WOULDNT

I want to thank all of the Southwest and Frontier employees for all of the the great flights that I have had on both airlines. All of you have done a great job. If it was not for you we would all be flying AA Delta United, and we all know what the fares would be. This morning when I got up acounding to CNN news we were still in a recession. I just don't want to see anybody else loose ther job.
Thanks again Southwest and Frontier employees for your great sevice. It is you that makes a Airline or any other Buisness

ok..for those of you out there that are sooo excited about the Frontier/Republic bid...good for you. All I can say is give it a few years....Frontier will be at SWA's feet begging to get them out of the mess they got themselves into. In case you didn't notice, this was a BUYOUT not a MERGER. They should have been lucky enough they were keeping their jobs...and yes they were keeping their jobs. This is business people, not personal. The better airline lost out simply because of the stupidiy of the Frontier pilot union. And just so you know...there are a large amount of ATA people working at SWA, SWA never owned ATA, they only bought roughly 25% of their assesst to get them out of bankruptcy. ATA managed to put themselves out of business all on their own, and in the process cost SWA money as well. So whoever up there said look what they did to ATA...get your facts straigt buddy... you don't have a clue what you are talking about. After ATA went out of business where do think they went looking for jobs. I'll give you one guess and it doesn't include Frontier or Republic!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thank you, Gary Kelly.

For showing that Southwest is dedicated to it's customers, employees, culture, and stockholders!

Not to mention showing through all of this, that Southwest is the TRUE low cost carrier in Denver.

Now that the auction is over, and Sean Menke was asked to stay on at Frontier the truth is out.

"Menke conceded on a conference call with reporters Friday that the auction outcome—leaving Southwest as a competitor rather than owner of Frontier—"makes it tough" for airlines to boost fares and achieve profitability in Denver. "I'm not going to beat around the bush on that one. That's why we've been focused on the cost structure." "

So one can only conclude, that the only reason their fares have been low, is because Southwest entered the market, as the TRUE low cost carrier.

As for those of you responding to the post above:

"I don't understand why Frontier employees feel confident that they will keep their jobs with Republic.

"Pilot labor expert and airline consultant Robert W. Mann said Southwest’s executives can’t be blamed for thinking that Frontier pilots would see the prospect of higher pay and potentially greater job security in the Southwest bid as attractive.

“Frontier pilots need to look at the facts,” he said. Republic has said it would operate Frontier separately from its other regional jet operations, but Republic replaced all the pilots and planes at Midwest Airlines when it bought Midwest this year and could do the same to Frontier’s operations down the road, Mann said. ""

After reading in Buisness week today.

I would beg to differ that they have all the facts yet, as I am certain that they are not all worked out, and not all those maintnance jobs will stay in Denver.

But what is certain, as it has been stated by Bryan Bedford on behalf of republic. " Some of Frontier's Airbus 319s will migrate to Milwaukee for new nonstop flights to the West Coast. Republic also is likely to seek cost "synergies" for its expanded fleet, in terms of maintenance and other aircraft operations. "

"There's not a lot of organic growth in the fixed-fee contract flying business," Bedford said. He added: "I hope these transactions don't negatively affect these relationships in the long term." Which one might conclude he is concerned about legacy carriers considering Republic as a competitor now, and further decreasing it's market capital.

Add that to the following from the same article.

To date, Midwest has flown only Boeing 717s, which do not have cross-country range. Vaughn Cordle, an airline analyst and former pilot, said in a note Friday that Republic's small market capitalization—"suggests that Republic will want to move aggressively to displace as many Airbuses as fast as practical to lower its average costs."

I would not be on here posting how all of you at Frontier are keeping your jobs, and your airbuses, as it sounds as if they may be leaving.

You can see for yourself, as I know you are going to dispute it. ( I supose you will claim Southwest has some conspiracy with buisness week or something. )

The article is located here
http://www.businessweek.com/bwdaily/dnflash/content/aug2009/db20090814_5...

I have been amazed at how many Frontier employees, find the need to come post here on the Southwest Blog. (I don't understand why their company cannot post on their own blog. If they do not have one, then make one.)

But at any rate, congradulations on sticking with your employees, customers, and share holders Gary Kelly.

As a huge fan of Southwest!

I am a loyal Southwest customer, and I hope you continue to expand your great brand!!!

Don't let those Frontier people get you distracted, it seems by the newsweek article there maybe allot of them with time on their hands, to just come in here and distort facts and antaganize a fantastic airline.

Critics who watched the process closely said Southwest's bid wasn't ready for prime time. Southwest executives "seemed not to understand the dynamics of the process or the obvious bottlenecks and complexities involved," said industry consultant Mo Garfinkle of Arlington, Va. Southwest "was naive and it didn't know it. It underestimated Republic and its talented management team, and it overestimated the reception to a Southwest bid, especially by the Frontier stakeholders."

Southwest withdrew its bid Thursday evening when the pilots' unions of the two airlines could not reach agreements before the auction process, as was required by Southwest's offer. The offer would have given pilots more pay, but kept them at the bottom of the seniority list

that's not nice..................

I am very disappointed with the attitudes of some of the people posting here. If they are employees of either airline, I wouldn't want to work for either of them. It is great that you all are proud of your respective companies, but you need to show professional courstesy and respect for one another.

Frontier, you can't blame SWA for attempting to buy, not merge with, (there is a difference) your airline. You have a great product with great customer service and awesome employees. Buying a whole airline for $170 million is a steal. SWA had nothing to lose and everything to gain by making a run at it. It made perfect sense for them to try.

SWA, you can't blame Frontier employees for being scared about being bought out by you. You pretty much admitted that Frontier would go away in 2 years as you asorbed their
routes. I know that would sour my attitude towards SWA if I worked for Frontier. You too have a great product with great service and awesome employees. Keep it up and it won't matter that you didn't win the bid.

I wish the best for both airlines. Frontier, I pray things work out for you all and that
Republic treats you with the respect that you deserve. SWA, I applaud the loyalty shown to your employees and hope that you keep it up.

Whew, what a relief to know our home town airline is not being gobbled up by Southwest! Frontier has nice new CLEAN planes, nicer people and the ability to watch TV or a movie on a long flight. I travel quite a bit (4-5x a month) and will always pick Frontier over all others when I can. After that is a toss up between UAL and SWA, usually UAL though because of miles and the greater destinations out of Denver.

It is great knowing that Frontier is not going to be bought then torn apart by the sore bullies on the block. Southwest thought they could buy their way into profitability in the Denver market, think again. Frontier focuses on being the best airline in the industry and it shows in everything they do! Way to Go!

What surprises me is the large number of F9 fans and F9 employees who are sitting on the Southwest Airlines Blog. It appears there may be some SWA Envy going on. I give the F9 employees less than a year before they are banging on SWA's door looking for a job. Oh wait. SWA was probably where they dropped their first application and they didn't get selected.

I must say that I'm so pleased to learn that Southwest could not go through with acquiring Frontier Airlines! Such a move would ruin them for good!!! And here's why.

For starters, Southwest flies and all-737 fleet - just one aircraft type exclusively! Frontier - on the other hand - flies Airbus A318s, A319s, A320s, and Bombardier Q400 turboprop aircraft. That's right, folks, TURBOPROP AIRCRAFT. Airbuses and Q400s are NOT Boeing 737s, and therefore SHOULD NOT be operated by Southwest!!!!

I do recall when Frontier flew a sizable fleet of 737s back in the 80s and 90s, but they have all since been replaced by Airbus and Bombardier Q400 aircraft. The Q400s are also operated by Lynx Aviation, a subsidiary of Frontier. Neither the Q400 or the Airbus share any type of interchangeable parts with Boeing 737s, and this would mean that Southwest would need to have a relatively large stash of parts and supplies at each of their major maintenance bases - primarily Love Field, Hobby, Oakland, Midway, and so forth.

As I recall in an article I read back in 1994, it was co-founder and now former CEO Herb Kelleher's objective to not only employ just one aircraft type in the Southwest fleet, but also to provide exceptional customer service, point-to-point air service (which means bypassing the major hubs to reach their intended destinations), no in-flight meals, NO flight services to ANY destination outside the lower 48 US states (and this includes Alaska and Hawaii, folks), and so forth. These services have been the key to Southwest's long-running success over the years, and if they were to buy an airline that neither provides these same services nor flies the same type of aircraft, then there just could no longer be any success at Southwest Airlines - PERIOD!!!!!

And between you and me, folks, I just could not imagine seeing Southwest's color scheme painted on the fuselage and tail sections of a Bombardier Q400 or Airbus A319. It would look just so doggone out of place!! Southwest's colors belong exclusively on Boeing 737s - no ifs, ands, or buts!!!!! Now, I do recall in 1979 when Southwest leased a single 727-227 from Braniff Airways, but that plane was a sister Boeing aircraft with interchangeable parts. This was a short-lived lease, though, and soon WN was once again back to operating as an all-737 carrier.

Last month, I wrote a single-page letter to Southwest, stating my lack of support for them to acquire Frontier Airlines - because I knew something was amiss. I told them they needed to get themselves back on track, or they would never be successful again. And it's not that I'm afraid of flying aboard a turboprop. I have done this in the past, and I'm fine with that. But the Q400 has a bad reputation as being a somewhat non-reliable aircraft. SAS Commuter was forced to retire their fleet of Q400s last year, on account they were having trouble with landing gears that kept collapsing upon touchdown - or they would fail to open altogether. And then there was that airplane crash involving a Colgan Air (CO Connection) Q400 just outside Buffalo, New York, in February this past winter. That was a tragic nightmare, and all lives on board were lost!!! Recall that???? Sure, the Q400 might look like a sweet bird, but it's all personality and NO character whatsoever!!!!!!!

And so, folks, this is my statement. Southwest had best be glad they were not selected for this bid to acquire Frontier, because had it gone through with this I most definitely would not fly with them ever again! I don't fly that much anyway, because I really can't afford it. But I usually can tell whenever a problem is about to arise when someone is about to make a bad business decision!!

I just want to say that it's absolutely amazing that SWA started and kept this blog alive with all of the negativity in its threads. I am - and always will be - a fan of Southwest Airlines (as just a regular old passenger) and think some of what was said in here was uncalled for. I think this blog deserves more positivity, so I'm going to provide some.

I love Southwest Airlines for the following reasons, and have been flying them for 15 years:

1) This company thrives on making it affordable to fly. From weekly fare specials, to Ding! fares (that conveniently and frequently show up in your task bar with a cute little piece of mail on the tail of airplane), to their Featured Destination, you can get a great deal to great US cities often. I can cite many specific examples of fares I've gotten for less than $100, and can only recall paying more than $200 on two or three (of ~90) occasions. SWA has spoiled me to the point that fares over $200-250 are appalling!
2) Southwest has a great rewards program. After flying 8 roundtrip trips, you can get a free flight. This program has (understandably, considering the economy) offered fewer of the "double rewards" it used to offer, but I have gotten SEVERAL free tickets on SWA.
3) Southwest has some of the greatest employees on earth. They are positive, cheerful, helpful, funny, concerned, and passionate about keeping up a great reputation for themselves and their company. I'll never forget the time a flight attendant said "meow" over the intercom around 35 times while explaining that we were arriving to Chicago on time and beginning our descent.
4) Southwest has an excellent record of leaving on time, and getting places early. I'm not the type to look up the exact stats, or how they compare with other airlines, but I've experienced very few late departures (luckily, the times I did, I really needed the flight to be as late as I was running), and very few late arrivals (maybe even none...).
5) The Spirit magazine they have on board is always interesting. I know they encourage it, but I've taken many of them home with me.
6) I happen to love the fact that, regardless of flight time, I always get a package of peanuts and a little snack whose smell is non-offensive to people sitting around me. While some people may complain about an airline that does not provide in-flight food service (not many do these days anyway), I like the fact that if it's a longer flight, I know I need to pick up my own lunch or dinner.
7) They don't hate my bag (and I just love that commercial!). I rarely check bags, but if I did, I sure wouldn't want to have to pay for it. If, however, it was necessary to keep the company alive, I would.
8) Each month in Spirit magazine, they take the time to recognize an outstanding employee and an outstanding customer (or group of customers). There are full pages dedicated to these people, and I think it's just amazing. The CEO or CIO also make it a point to dedicate an article to the magazine talking about their experiences with the airline industry, with travel in general, with customers who've touched their hearts. They've told beautiful stories of personal and emotional times in our nation's history that shall never be forgotten and many stories of the happiness and joy travel brings to families during the holidays. I've never felt like I've known the beliefs and values of the top executives at a major corporation the way I feel like I know SWA's.
9) Southwest and its employees gives millions of dollars and a lot of time/hours (again, don't know stats) to various charities around our country. The great employees of Southwest make perfect fits as true altruists!
10) Southwest makes no bones about valuing its employees over its customers. I've read several accounts of this fact in the Spirit magazine, and to be frank, didn't really understand it at first. How could a company value its employees more than its customers? Well, clearly, it's great for any employee to work for a company that believes in this. Every working person would agree, right? Every consumer who believes that the customer is always right may not. However, it is clear to me that the trickle down effect of this value system makes for a very positive customer experience. And, you gotta love a company that loves its people.
11) Southwest's stock symbol is 'LUV' for goodness sakes! Enough said. (it's not over yet, though)
12) Southwest has never (knock on virtual wood) crashed. They only fly one type of aircraft for several business reasons, no doubt, but the main driver behind this is passenger safety. Every pilot and co-pilot knows how to fly the plane, every bagging agent knows how to appropriately and safely load baggage, every person on the maintenance crew knows how to maintain the aircraft and knows everything that could possibly be wrong with the plane if something doesn't look or sound right, etc. Bottom line is, I feel SAFE on Southwest Airlines.
13) This company, its corporate culture, its loyal customer base, and its sheer success is documented in many business articles and books and is studied in business schools around the country. Many companies admire, but can never achieve, the (near) perfection that is SWA.
14) New one from today: They have the character, confidence, transparency, and courage to publish and maintain this particular blog.
15) Southwest does not think of it as a business opportunity to make money when people need to change their flights - regardless of the reason. It's rarely free to change your flight last minute, but you're not going to be paying $100+ to do so.
16) There are probably a good 10 more reasons I think this airline is great, but I'm winding down and hope I've made enough of a point.

To all the other Southwest customers and employees that happen to love this company, I hope you choose to make your voice heard here as well. To those of you who have posted threads on this site, I sincerely wish you all the best. Mergers/acquisitions are no fun, and tend to scare people. I truly hope that the deal that was reached will be the best for all involved.

Southwest Airlines - please, please, please start flying into Alaska!!! Check out the comments to the possible Frontier purchase and how excited Alaskan's were about the possible service to Anchorage - talk about an untapped market!
Someone needs to give Alaska Airlines a run for it's money. (Alaska Airlines, what do I mean...rather Seattle Airlines....)

It's October 2 and now the Republic deal is 100% done. I think Southwest should now buy Lynx Aviation from Republic. It has been making a nice profit and everyone knows the Q400's are 30% more fuel efficient than other commuters.

Southwest could grow its Denver presence by having Lynx feed them instead of the "new" Frontier owned by Republic. Republic doesn't want any turbo props in its fleet.

Alaska airlines certainly has proven a feeder like Horizion (its wholly owned commuter) makes sense and lots of dollars. Southwest could own the smaller markets like Aspen and other cities that don't work well with 737's.

Lynx would be a great buy with brand new airplanes, a separate certificate and well trained crews. Go get em Southwest

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