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Jul 16, 2009

Blog: Perspective on Frontier Airlines investment agreement with Republic Airways


You can read the article posted on KMGH-TV's web site below.  However, we would like to add some much needed context to the story.

Here are the issues we have with the story:

  • Why aren’t the “sources” named?  People are sharing their opinions on what might happen. Anybody who has an opinion worth sharing would put his or her name to it for added credibility. There are dozens of aviation “sources” who have presented varied, thoughtful opinions over the last few weeks on what might happen, and they have all attached a name and organization soviewers or readers can make a determination on credibility. Why does this story use unamed sources
  • The language used to describe possible scenarios is quite sensational, with these two in particular being the most troublesome:
  • An aviation source said if the buy goes through, Colorado is losing its downhome, friendly, hometown airline.” Even if some corporate jobs would be moved elsewhere, we still employ more than 4,000 people in this state.  And Republic dosen’t have the people that comprise the vast majority of our operation, such as reservations agents, revenue management people, ticket counter agents, ramp agents, etc. Even if there is some redundancy and consolidation, Frontier would still have a large presence here in Denver.  And why would we suddenly become unfriendly? As we have said repeatedly, Republic believes in the Frontier brand. Why would they change it drastically?
  • The Frontier brand will be gone based on what Republic has done in the past with smaller, regional airlines. In other words, amenities such as comfortable planes, TVs in the seats, and possibly some routes will be gone.”  Republic has never acquired other major, low-cost carrier in the past.  We believe Republic wants to diversify its revenue streams by adding something to its portfolio not already there, allowing the people in that company who have the expertise to run that particular kind of operation, especially when it’s one of the few airlines making money right now.
  •  In conclusion, we are dissapointed the story took a doom and gloom approach should the investment agreement go through. We understand this is a high-profile story right now that a lot of people are interested in. And we realize there is a lot of room for speculation right now because there is a lot of unknown. fortunately, we don’t have a lot of information to share right now because we are still VERY early in the process. But to fill these gaps with unnamed sources speculating on matters in which they don’t seem fully qualified to speak upon is irresponsible.  It doesn’t inform.  It just plants further seeds of doubt and worry.

Here is part of the KMGH article:
Will Frontier Airlines' Home Move If Republic Buy Goes Through?

Indianapolis-Based Carrier Also Wants Midwest Airlines

Tags:
republic bankruptcy


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