I heard from Cheri at DEN, that RAH has given it ok for discussion talks between F9 and Apple Vacations on a possible partnership.
Frontier Airlines and a possible partnership with Apple Vacations
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Cheri said she heard a rumor today, JUN 1, 2011, that Frontier Airlines was looking at a code share agreement with British Airways out of DEN. She said that F9 would feed BA at DEN, from Alaska and from the Western states to some of the Midwestern states, but not East of the Mississippi River.
F9 would not feed BA on flights that BA and AA have code share flights on in the Midwest area, To/from like ORD and DFW. F9 would get access to BA network worldwide to feed DEN mainly then to F9 system, and from other US gateway cities that BA flies to except ORD and DFW, to feed F9 route system and vacation destinations.
I told her that would be interesting and that it maybe to late in the summer travel season to start bookings for a code share agreement with BA, 3 mos earlier would of been a better setup for a agreement. I could see 2012, but stranger things have happen.
F9 would not feed BA on flights that BA and AA have code share flights on in the Midwest area, To/from like ORD and DFW. F9 would get access to BA network worldwide to feed DEN mainly then to F9 system, and from other US gateway cities that BA flies to except ORD and DFW, to feed F9 route system and vacation destinations.
I told her that would be interesting and that it maybe to late in the summer travel season to start bookings for a code share agreement with BA, 3 mos earlier would of been a better setup for a agreement. I could see 2012, but stranger things have happen.
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I was talking to Sammy and ask him how things are going, He said, OK. RAH was looking at some additional contract flying. He told me that thing are in the early discussion stage on a possible Air Service Agreement and/or modified Capacity Purchase Agreement with some other airlines, which may not be US, UA/CO, DL, or AA.
Sammy said that RAH would not have a problem with the other carrier's scope agreements, since RAH service would be domestic service and that the service would be from most all USA gateway cities. Sammy believes that the carrier/s would select the cites pairs that the carrier/s prefers RAH to operate in, but he said that RAH would like to have the flexibility to put the right size of aircraft in the selected market for the given market at that time the year/or season which would/could be base on bookings/booking history.
I told Sammy let me know how things are coming along.
Sammy said that RAH would not have a problem with the other carrier's scope agreements, since RAH service would be domestic service and that the service would be from most all USA gateway cities. Sammy believes that the carrier/s would select the cites pairs that the carrier/s prefers RAH to operate in, but he said that RAH would like to have the flexibility to put the right size of aircraft in the selected market for the given market at that time the year/or season which would/could be base on bookings/booking history.
I told Sammy let me know how things are coming along.
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Cheri said F9 was looking at possible Florida city as a focus city for a starting point to some caribbean islands and some Brazilian markets. I guess they could call it the Fun in the Sun/Beach run. It would be great for the winter/spring of 2011/2012.
I could see a expansion at MCO or TPA and maybe at FLL, because of the FIS at these airports instead of RSW and PIE. With expansion at MCO or TPA to places like MBJ, KIN, BDA, BQN, PSE, STT, STX, and SJU. SJU would be a fuel stop to some Brazilian cities like FOR, REC, NAT, and BEL. The Brazilian markets may not be open until 2012 when the first phase of the USA--BR open-skies agreement starts for secondary cities markets.
I could see a expansion at MCO or TPA and maybe at FLL, because of the FIS at these airports instead of RSW and PIE. With expansion at MCO or TPA to places like MBJ, KIN, BDA, BQN, PSE, STT, STX, and SJU. SJU would be a fuel stop to some Brazilian cities like FOR, REC, NAT, and BEL. The Brazilian markets may not be open until 2012 when the first phase of the USA--BR open-skies agreement starts for secondary cities markets.
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Cheri said Frontier has been talking with RAH about a replacement aircraft for ASE, The replacement aircraft would be for the last 4 Q400 aircraft, since the Q400 appear to be staying for awhile. It looks like they are re-evaluating 2 different aircraft for ASE. Cheri said one is below the 100K LBS threshold at ASE and the others is 10K for the basic or 21K for the high gross weight above the 100K LBS threshold, which F9 could apply for a wavier from the ASE airport authority and the FAA. She told me that the flight characteristics are lot better and within the ASE airport flight envelope requirements for the approach charts and the departure charts procedures. she also said that the single engine out flight characteristics envelope for a departure and a single engine out on a go-around procedure with a bird strike on climb out to the right were well within the flight characteristics envelope of the 2 aircraft at ASE. She said RAH try to get a E170 or a E175 to work, but no joy. She also said they try to get a E190 to work, but also no joy, she said that the E190 was a little bit better than the E170/E175, but they still have problems with the single engine out flight characteristics envelope procedures. I told her that I could see the below 100K LBS staying with RAH, but the 110K to 121K LBS going to F9.
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Did Cheri tell you about the 18 of F9's 59 Airbus that were damaged by a hailstorm at DIA on July 13? Did she tell you that they took a $10 million dollar hit from accomidating customers and repairing the damages? CEO Bedford seems to think that they are the reason for the low fares in Denver, not WN!
Well hope they survive the WN attacks!
Well hope they survive the WN attacks!
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Yes I saw the hailstorm and some of the damage at DEN (DIA) on the 13 July. I did read that Frontier had damage to 18 of their aircraft, and as for the $10 Million, the insurance will cover some of the cost for the damages, but leave Frontier with about $3-4 million with the rest of the cost, but as we all know the insurance premium cost will increase. F9 will still have to use some of the WN business games in the DEN catch basin area to retain market focus for the LCC, Witch is the same LCC that WN like to play business games with. I guess with WN in attack mode at DEN they will have to pull resources from other areas of operations to protect their fortress at DEN, F9 may have to evaluate to work on those pull resources.
9
Was wondering if you would know something about the mechanics at F9? Since the pilots and f/a's took, or are, voting to take concessions, has anyone heard if they are trying to take some from the mechanics?
I heard the 2Q earnings, and it sounds like all the investors for F9 are very worried about the restructuring at F9.
There are rumers flying that WN may be eye-ballin F9. I do know WN will be opening maint. up in DEN sometime next year. This follows other info. about greatly increasing DEN after AT merger is complete.
Are the mechanics at F9 still in DEN or did they move most of them to Indy after republic bought them?
Last question; are the mechanics unionized at F9, if so, what union if you know???
Was wondering if you would know something about the mechanics at F9? Since the pilots and f/a's took, or are, voting to take concessions, has anyone heard if they are trying to take some from the mechanics?
I heard the 2Q earnings, and it sounds like all the investors for F9 are very worried about the restructuring at F9.
There are rumers flying that WN may be eye-ballin F9. I do know WN will be opening maint. up in DEN sometime next year. This follows other info. about greatly increasing DEN after AT merger is complete.
Are the mechanics at F9 still in DEN or did they move most of them to Indy after republic bought them?
Last question; are the mechanics unionized at F9, if so, what union if you know???
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Not at the present time, but BB is working on that course of direction to get the teamster union for the mechanic on board. The investor are some what worried about the restructuring, but are more worried about growth or lack of growth to secure their investments. F9 main maintenance hub is in DEN and maintenance op at MCI and MKE. RAH IND ops is mainly for RAH pre F9, YX ops, RAH/F9 main supply division is at IND, but some items may go direct DEN, MCI, or MKE.
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I talk with Cheri again, she say the contacts I gave her a month ago were very helpful and very interesting. The contacts were for possible new investor in RAH for a equity stake in F9, these were not the investor but are go-between. I know a few of my contact groups in DEN, PHX, SLC, LAX, SFO, DFW, MSP, STL, ORD, ATL, MIA, BOS, BDL, and NYC to list some, that could use their contacts to potential investors.
Cheri told me investor A (from the PHX contact) was very interested in a 15-20% equity stake in F9 through a third party, like TPG, Blackstone, Oakhill, Park Lane, etc...
Investor B (from the ATL contact) was also very interested in a 10-15% equity stake in F9, but they are limited to the foreign ownership laws, they also want to go through a third party, like TPG etc...
I ask Cheri if A and B were looking at a similar agreement that TPG/NWA had in YX. She said it appears that is the direction.
Cheri told me investor A (from the PHX contact) was very interested in a 15-20% equity stake in F9 through a third party, like TPG, Blackstone, Oakhill, Park Lane, etc...
Investor B (from the ATL contact) was also very interested in a 10-15% equity stake in F9, but they are limited to the foreign ownership laws, they also want to go through a third party, like TPG etc...
I ask Cheri if A and B were looking at a similar agreement that TPG/NWA had in YX. She said it appears that is the direction.
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Cheri called and said that I should contact Sam, she said Sam had some information about central Fla. I said OK.
I contact Sam and ask what gives, Sam said F9 is still work on a deal in the SE US, at MCO ATL,and possibly TPA. Some cities spoke of, were VPS, PNS, TLH, MOB, GPT, JAX, CSG, MSY, BTR, SAV, AGS HSV, MGM, BHM, CAE, SRQ, and RSW. These cities were mention to be a feed to international carrier.
The international carrier was looking at a fixed fee agreement with RAH/F9 and a equity share in F9 to feed other international gateway cities from the US east coast and the US west coast with a add possibility of PHX and LAS.
I ask Sam if Cheri said anything about company A and company B interest in equity stake F9 ? Sam said yes, and that company C also has a interest in F9 to feed Asia markets with as similar agreement as the SE US, but with a west coast and mountain region feed to LAX, SFO, SEA, and PDX.
I told Sam it would appear that RAH/F9 may need to expand their operations, and look to expand their fleets through aasset acquisition, merger, or a large equity investment in a regional carrier.
So let see.
OO, (OO, EV, and XE), No, already under agreement with DL and UA. The DOT may not approve a merger.
9E, (9E, XJ ) No/but possible, 9E is under agreement with DL.
AE, (AE, CP) No/but possible also under agreement with DL and UA.
MQ, possible after AMR spin off MQ. MQ appears to be a shell company with no aircraft or route structure or airport facilities, but has mainly employees and ground equipment and a CPA agreement through AMR after the spin off.
YV, possible as a merger, YV is under agreement with US and UA.
ZW, possible as a merger, but also under agreement with US and UA.
My question would be MQ. expansion would be possible, but a large equity would be needed to be rationalized with MQ share holders for a agreement to redirect some traffic from unprofitable routes. That would be my guess.
I contact Sam and ask what gives, Sam said F9 is still work on a deal in the SE US, at MCO ATL,and possibly TPA. Some cities spoke of, were VPS, PNS, TLH, MOB, GPT, JAX, CSG, MSY, BTR, SAV, AGS HSV, MGM, BHM, CAE, SRQ, and RSW. These cities were mention to be a feed to international carrier.
The international carrier was looking at a fixed fee agreement with RAH/F9 and a equity share in F9 to feed other international gateway cities from the US east coast and the US west coast with a add possibility of PHX and LAS.
I ask Sam if Cheri said anything about company A and company B interest in equity stake F9 ? Sam said yes, and that company C also has a interest in F9 to feed Asia markets with as similar agreement as the SE US, but with a west coast and mountain region feed to LAX, SFO, SEA, and PDX.
I told Sam it would appear that RAH/F9 may need to expand their operations, and look to expand their fleets through aasset acquisition, merger, or a large equity investment in a regional carrier.
So let see.
OO, (OO, EV, and XE), No, already under agreement with DL and UA. The DOT may not approve a merger.
9E, (9E, XJ ) No/but possible, 9E is under agreement with DL.
AE, (AE, CP) No/but possible also under agreement with DL and UA.
MQ, possible after AMR spin off MQ. MQ appears to be a shell company with no aircraft or route structure or airport facilities, but has mainly employees and ground equipment and a CPA agreement through AMR after the spin off.
YV, possible as a merger, YV is under agreement with US and UA.
ZW, possible as a merger, but also under agreement with US and UA.
My question would be MQ. expansion would be possible, but a large equity would be needed to be rationalized with MQ share holders for a agreement to redirect some traffic from unprofitable routes. That would be my guess.
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I asked Cheri how things are working out at F9 ? She said good, she said some good days and a few hard days. I told her that's typical.
She said RAH is parking RP ERJ that fly for F9 in a couple of months, I told her that the FAA has made a rulemaking change on the ERJ 135/140/145's and CRJ 100/200's and other aircraft of 60,000 lbs or less operating under FAR 121 effective OCT 2011, these are concerning flight rules of operating in icing conditions. I told her that she can go to the FAA website under rulemaking to find the information. I said RAH is probably using the down time on the ERJ to do some reto-fitting in phases and cycling the other fleet aircraft through on exchange program for the icing detection sensor system and using the AFM updates until the reto-fit is complete fleet wide.
I asked her about LGA/DCA slot options, she said working, she said F9 does not prefer the 8 slot bundles limit. I suggested to her that F9/RAH work with the DOT and DOJ on working within the 8 slot bundle to level the playing field with WN, she said like what ? I said if B6, WS, SY, G4, and F9 have issued their concerns with the DOT, then maybe they need to work with the DOJ (anti trust concerns) about leveling the playing field with WN size and powerful influence.
If F9 and SY could work out agreement to bid on the slots as one bid and share/or/rent 8 slots options at LGA and DCA from each other, or said F9, SY, G4, or even WS possibly B6 work out a similar agreement for the slots for them self's on slot options bid, then that could level the playing field a little, or any combination of those company's working on a combine bid for the slot bundle at both LGA and DCA. provided DOT and DOJ do not have any objections on anti-trust concerns about competition in those markets.
WN has had the opportunity to enter the LGA/DCA slot market back in the 80's, 90's, and early 2000's, but chose to not entertain in the slot option market at EWR/JFK/LGA and DCA, but chose ISP and BWI/IAD. So with WN/FL merger that would not make them a limited carrier at LGA.
She said that could be interesting.
She said RAH is parking RP ERJ that fly for F9 in a couple of months, I told her that the FAA has made a rulemaking change on the ERJ 135/140/145's and CRJ 100/200's and other aircraft of 60,000 lbs or less operating under FAR 121 effective OCT 2011, these are concerning flight rules of operating in icing conditions. I told her that she can go to the FAA website under rulemaking to find the information. I said RAH is probably using the down time on the ERJ to do some reto-fitting in phases and cycling the other fleet aircraft through on exchange program for the icing detection sensor system and using the AFM updates until the reto-fit is complete fleet wide.
I asked her about LGA/DCA slot options, she said working, she said F9 does not prefer the 8 slot bundles limit. I suggested to her that F9/RAH work with the DOT and DOJ on working within the 8 slot bundle to level the playing field with WN, she said like what ? I said if B6, WS, SY, G4, and F9 have issued their concerns with the DOT, then maybe they need to work with the DOJ (anti trust concerns) about leveling the playing field with WN size and powerful influence.
If F9 and SY could work out agreement to bid on the slots as one bid and share/or/rent 8 slots options at LGA and DCA from each other, or said F9, SY, G4, or even WS possibly B6 work out a similar agreement for the slots for them self's on slot options bid, then that could level the playing field a little, or any combination of those company's working on a combine bid for the slot bundle at both LGA and DCA. provided DOT and DOJ do not have any objections on anti-trust concerns about competition in those markets.
WN has had the opportunity to enter the LGA/DCA slot market back in the 80's, 90's, and early 2000's, but chose to not entertain in the slot option market at EWR/JFK/LGA and DCA, but chose ISP and BWI/IAD. So with WN/FL merger that would not make them a limited carrier at LGA.
She said that could be interesting.
JAMAKE1
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