Republic Airways consolidation strategy
12-10-2009, 06:15 PM
#1
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Republic Airways consolidation strategy
Republic Airways provides clearest vision yet of consolidation strategy | Centre for Asia Pacific Aviation
Not flamebait, just interested in the economic leverage? Is Bedford's justification in competing against fixed fee contracts sound?
Not flamebait, just interested in the economic leverage? Is Bedford's justification in competing against fixed fee contracts sound?
12-10-2009, 06:35 PM
#2
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Great article...lots of info in it, especially about the future plans (fleet, brands, etc). Very well rounded view of the balance sheet, but it seems that they are a little concerned about making sure they can get the cash reserves back to their targets.
12-10-2009, 06:47 PM
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I like the author's description of how "convincing" Bedford is. How can you dispute his reasoning and thought processes with claims like "we are the only regional operator of E-jets in the U.S." Did he ever hear of Compass?
That little bit aside, it was nice to finally hear some rationale behind the acquisitions. I was unaware of the new 50/50 business/leisure standard for revenue sources.
I still wonder what all of the factors were that made the cost structure of Midwest so debilitating. We all know about the changes in pilot and F/A cost structure, but we all know that our wages are not make or break points. What else was going on in the finances of Midwest? What changes have been made that will honestly contribute to Midwest profitability?
That little bit aside, it was nice to finally hear some rationale behind the acquisitions. I was unaware of the new 50/50 business/leisure standard for revenue sources.
I still wonder what all of the factors were that made the cost structure of Midwest so debilitating. We all know about the changes in pilot and F/A cost structure, but we all know that our wages are not make or break points. What else was going on in the finances of Midwest? What changes have been made that will honestly contribute to Midwest profitability?
12-10-2009, 07:09 PM
#4
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The other thing I noticed which BB also stressed in the article below, is that RAH (Frontier) does not have to take the Airbii that are supposedly coming in the next few months. It almost seems he is back tracking some earlier statements about accepting the aircraft and now saying they are just commitments and not deliveries. I'm not sure it is posturing for a future order, but he has been clear in a few different articles that RAH may not be taking delivery of the aircraft. It seems they are seriously looking at the idea of a "fleet replacement" (quote from article) for Frontier.
Republic Airways eyeing Bombardier C-Series planes | Reuters
Republic Airways eyeing Bombardier C-Series planes | Reuters
12-10-2009, 07:23 PM
#5
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Profitability at what cost
From the article:
Our job was simple – could we buy company and operate it at our costs and we’ve done that. We’ve dismantled everything that was Midwest. There is no operating certificate, no unions, no anything. It is a virtual airline providing capacity sourced either through Republic with the E-Jets or Frontier with its A319s.
12-10-2009, 07:27 PM
#6
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"frequent fliers who are willing to pay us a premium to get on Midwest because they love that cookie.”
If he thinks that was the reason for Midwest's reputation, his company is in big trouble. Passengers kept coming back to Midwest because of the service given by the employees, most of which, are now gone.
I also think that it is glaringly apparent that there is no mention at all in the article about any impending labor agreements. Not even on his radar.
A minor annoyance, at best.
If he thinks that was the reason for Midwest's reputation, his company is in big trouble. Passengers kept coming back to Midwest because of the service given by the employees, most of which, are now gone.
I also think that it is glaringly apparent that there is no mention at all in the article about any impending labor agreements. Not even on his radar.
A minor annoyance, at best.
12-10-2009, 07:55 PM
#8
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12-10-2009, 08:44 PM
#10
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Originally Posted by Dougdrvr;724806[B
]"frequent fliers who are willing to pay us a premium to get on Midwest because they love that cookie.”[/B]
If he thinks that was the reason for Midwest's reputation, his company is in big trouble. Passengers kept coming back to Midwest because of the service given by the employees, most of which, are now gone.
I also think that it is glaringly apparent that there is no mention at all in the article about any impending labor agreements. Not even on his radar.
A minor annoyance, at best.
If he thinks that was the reason for Midwest's reputation, his company is in big trouble. Passengers kept coming back to Midwest because of the service given by the employees, most of which, are now gone.
I also think that it is glaringly apparent that there is no mention at all in the article about any impending labor agreements. Not even on his radar.
A minor annoyance, at best.
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