Blog

By: Michael de Yoanna

Category: Business, Panorama

Posted: August 14, 2009 10:14 AM

Tags: Outdoors, Education

How Southwest Airlines Lost Its Bid for Frontier

The Frontier Airlines employees who marched on the streets in hopes of keeping their proud company's integrity intact appear to have scored a major victory. Southwest Airlines, which swaggered with loads of cash but little in the way of union diplomacy, failed in its effort to purchase Frontier, a major competitor that would have been absorbed and then eliminated in coming years (via The Denver Post). Frontier will keep its name, meaning the bear and the rest of the zoo will likely stay on the fleet's tail fins thanks to Republic Airways Holdings, which walked away from the bidding wars in what can only be described as one of the shrewdest business coups of the year. The move could also vindicate Frontier's marketing. Ginger Polley, who often flies Frontier for business, was "relieved" when she learned Republic won out, "because it gives me hope that they will keep the name, branding and animals. Something about those animals is just warm and fuzzy." Southwest failed to reach an agreement on integrating its pilots union with Frontier's, the Denver Business Journal and other publications reported yesterday as Southwest's effort began to show signs of strain. The two pilots unions apparently haggled over how to mesh their seniority lists. "In this case, common sense lost out to fear, uncertainty and doubt," Robert Mann, an aviation consultant, tells Bloomberg.

Comments

Just out today! New Midwest Airlines owner (Republic) to cut 100 local jobs http://www.jsonline.com/business/53241102.html "Many of those employees are needed because Republic's main business is operating commuter flights for Delta Air Lines Inc., United Airlines and other major carriers. As a result, Republic doesn't have a customer service department, marketing department and other operations used by the carriers that hire Republic." "Around 160 employees are receiving layoff notices" "Still up in the air is the fate of over 250 Midwest pilots and flight attendants who are represented by the Air Line Pilots Association and Association of Flight Attendants. Those unions are negotiating with the International Brotherhood of Teamsters, which represents union flight crews at Republic, over combining seniority lists of union flights crews from Republic and Midwest."

It is amazing how you and so many other bloggers have it down on Southwest and up on Frontier and Republic. Get it right. What about the fact the Republic just bought Midwest Airlines and got rid of their staff, including pilots and inserted their own. Frontier pilots haven't even talked to Republic's Teamster union to see if the seniority will dovetail. I have heard they are going to the bottom. At what point is Republic going to com in and clean house and align services with thier own system. Midwest has the same services Frontier does and there will be alot jobs cut at both. And lets not lose sight of the most important thing! Frontier management had driven the airline into the ground and into bankrupcy. Posting a profit in bankruptcy, wow. So did United. All those share holders and business people in Denver that have lost so much cause the hometown airline is writing off these debts. Image all those Frontier pilots that were not on the Union Negotiating team that will be losing their jobs. We will wait for their blogs... The truth will come out in due time to show the pilot committee at Frontier will be wishing to roll back time and take the bottom of the seniority list and 40% more pay. That unemployment thanks to Republic will not look better.

One last thing, at least Southwest was honest up front of their plans. Republic tells all that things will be status quo for awhile. Good luck and hope you can stay out of bankruptcy court for a while. Republic will drive you right back...

Facebook Comments Box

Denver Real Estate 2013 - Get In The Game

Here’s why it’s finally time to get back in the Denver real estate market.

Spin Cities

We’ve highlighted some of the best road cycling routes along the Front Range and in the high...

Risky Business

Colorado’s labor market has more than its share of occupational hazards.

Escape

Each year, more than 18,000 victims of domestic violence call SafeHouse Denver’s hot line. Meet...

Get Well

From obesity to food allergies, we break down five issues facing Colorado’s kids.