Frontier files for Chapter 11 reorganization...

http://biz.yahoo.com/prnews/080423/law052.html?.v=101

Frontier Airlines Discontinues Agreement with Republic Airways
Wednesday April 23, 8:00 am ET


DENVER, April 23 /PRNewswire-FirstCall/ -- Frontier Airlines Holdings, Inc. today announced it has reached a mutual agreement with Republic Airways to early terminate the airlines' code sharing agreement. There will be a structured reduction and gradual phase-out of Republic's 12 aircraft from Frontier's daily operation to be completed by mid-June.
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Could be the first of many changes at Frontier.
 
Frontier is a great little airline. With that being said, I just don't see how they are going to hold their own against Southwest in Denver. I really don't. They better have something REAL crafty up their sleeve.
 
I was working a bunch of schedule changes for F9. (I'm not sure, but) It looks like they cancelled their contract with Republic for the CRJ-700 flights. I think they dropped about 5 cities. Is this the middle of the end? or are they streamlining things for a possible takeover; dropping all non F9 or Lynx flying?

I still stand by my belief that they could make an awesome partner for WN if they concentrated on international codeshare with WN, major DEN markets, and used Lynx to go to smaller, high yield markets in the Rockies.
 
I was working a bunch of schedule changes for F9. (I'm not sure, but) It looks like they cancelled their contract with Republic for the CRJ-700 flights. I think they dropped about 5 cities.


Correct.

Well, technically 6 cities, if you count MSO (was supposed to start 5/16).

Cities gone are SUX,JAX,LIT,MEM,TUL.

Here's an article with more info.
 
It may be a smart move for them to drop the higher cost RJ flying eve though they technically were not flying the routes but rather contracted with Republic. It makes sense for a major network carrier to use some below 100 seat capacity aircraft but for a smaller carrier or low cost carrier is it necessary?

If fuel gets up to $200.00/bbl there may be a rude awekening for cities/regions smaller than 250k people with lots of them loosing commercial JET service. Some cities might see reduced flight options and lots of Q-400 or similar sized/economized aircraft operating. Doesn't it make sense for F9 to drop the 90 seat contracted jets if more money could be made operating the Q-400 in their wholly owned division?
 
I heard from a friend who works at Frontier that the DIP financing had been arranged. No details.

But is this not cool and a refreshing way to do business?

Frontier management gave the f/as the opportunity to vote on a 4-month 10% pay cut or a 4-month 6% paycut with changes in some workrules. In any case, the management said they will ask for concessions only on a temporary basis--i.e., 4 months at a time. If at the end of 4-months they need additional concessions, they will ask for them at that time or request that the f/as extend the current concessions for another 4 months, or the current concessions expire.
 

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