F9 secures DIP financing.
07-26-2008, 01:23 PM
#21
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Joined APC: Mar 2007
Position: CEO
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"Perseus has also agreed to serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million."
Does anyone else find that concerning? Does that mean Perseus will essentially own or control Frontier when the dust settles? Can anyone weigh in on that?
S.B.
Does anyone else find that concerning? Does that mean Perseus will essentially own or control Frontier when the dust settles? Can anyone weigh in on that?
S.B.
07-26-2008, 01:24 PM
#22
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Joined APC: Mar 2007
Position: CEO
Posts: 152
It also means the company is only worth approximately $125 million dollars (nearly half of what it was worth prior to entering bankruptcy). I think Frontier is a sinking ship. Those paycuts the pilots took will not help it out one bit. All it does is mean these pilots will have less money when Frontier does go out of business. It is very sad.
07-26-2008, 01:30 PM
#23
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Joined APC: Apr 2008
Posts: 62
The only way Frontier will make it is if the people of Colorado decide to fly on Frontier even though SWA is offering a cheaper ticket (to most places). Most people will take the cheaper flight regardless, and now that some guy is on the picture box telling the people of Denver not to book with Frontier for the holidays because Frontier might not be around, it may be too late.
I, personally, think that Frontier has a superior product over SWA. I like the planes, the people, and bring back my friggin' bread sticks already!
I'm not SWA bashing- Y'all got this aviation biz figured out. Congrats for that.
I, personally, think that Frontier has a superior product over SWA. I like the planes, the people, and bring back my friggin' bread sticks already!
I'm not SWA bashing- Y'all got this aviation biz figured out. Congrats for that.
07-26-2008, 07:23 PM
#26
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Joined APC: Aug 2006
Position: SWA/FO
Posts: 309
Can someone explain how this whole credit processer thing works. Seems UAL was having issues with them as well as of late.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous?
Just curious.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous?
Just curious.
07-26-2008, 09:44 PM
#27
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Joined APC: Oct 2006
Position: G2 gear slammer
Posts: 308
Can someone explain how this whole credit processer thing works. Seems UAL was having issues with them as well as of late.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous?
Just curious.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous?
Just curious.
328dude,
In a nutshell, F9 doesnt charge your credit card, a credit processor does and sends the money to F9 minus a fee to do business. Well let's say F9 goes out of business tomorrow, and refuses to give a refund. All those customers start to dispute the charge on their CC's, hence the hold F9's credit processor put on them. If i remember correctly, they held 100% (!) of their revenue from tickets for i believe three monthes to place in the bank so if F9 does tank, they won't be screwed out of their piece of the pie. Make sense?
BB from the iphone
07-26-2008, 11:32 PM
#28
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Posts: 1,874
Can someone explain how this whole credit processer thing works. Seems UAL was having issues with them as well as of late.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous?
Just curious.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous?
Just curious.
07-27-2008, 12:11 AM
#29
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Posts: 308
07-27-2008, 08:43 AM
#30
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Joined APC: Aug 2006
Posts: 1,874
Thread drift for sure, but he suggested that UAL was having troubles with their credit processor as well.
I am keenly aware that this was not the case in the F9 filing. It was a major cause.
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