F9, WN, and RAH-Everyone got what they wanted
#21
What noone here is stating is that SWA's stock will lose $1-2 of its value, and it's market value will drop because of their failure to acquire F9. The SWA BOD is probably angry with CEO Kelly for allowing the pilot's union to drive the integration process. SWA was all about acquiring F9 and increasing market share in a valuable market---DEN. Now, a competitor purchased F9 and SWA was left holding the bag. You don't normally see management allow labor to control business decisions, like acquisitions.
#23
Gets Weekends Off
Joined APC: Aug 2008
Position: Swing that gear
Posts: 354
Been an interesting week... best of luck to everyone involved.
#24
#25
#27
Gets Weekends Off
Thread Starter
Joined APC: Jun 2007
Position: CA
Posts: 1,207
What noone here is stating is that SWA's stock will lose $1-2 of its value, and it's market value will drop because of their failure to acquire F9. The SWA BOD is probably angry with CEO Kelly for allowing the pilot's union to drive the integration process. SWA was all about acquiring F9 and increasing market share in a valuable market---DEN. Now, a competitor purchased F9 and SWA was left holding the bag. You don't normally see management allow labor to control business decisions, like acquisitions.
#28
This whole thing was a win/win for SWA. Win the auction and they got an immediate boost to be a major player in DEN while lessening competition. By losing they gained goodwill with the SWAPA pilot group which could possibly lead to a TA sooner rather than later. They also got a good long look at Frontier's books, etc which I'm sure will help them forge their "Plan B" in DEN.
#29
On Reserve
Joined APC: Aug 2009
Posts: 17
Now watch SWA hire one of these subsidiaries for some RJ work...
#30