United Happy about Frontiers doubling in size
07-21-2017, 08:28 AM
#11
Squawking 2000
Joined APC: Jul 2015
Position: Skeptical
Posts: 737
Looks like the investment community isn't too happy about it:
https://www.bloomberg.com/news/artic...east-september
Frontier Stalls IPO in the Face of Airfare Brawl With United
By Mary Schlangenstein and Alex Barinka
July 19, 2017, 2:20 PM PDT
- Delay comes as discounter maps expansion of routes, cities
- United Airlines vows to win any competitive battle in Denver
Frontier Airlines pushed back its initial public offering, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United Airlines.
The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings Inc., which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as the second quarter, people familiar with the matter said.
The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United, the third-biggest airline in the U.S.
Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39.
On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers.
‘Our Turf’
Frontier’s plan suggests “that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
“They’re now competing on our turf and trying to be a network carrier in Denver,” Kirby said. “That is a battle I guarantee United will win.”
Frontier already offers connecting flights over Denver, so there’s no change in its business strategy, said Jim Faulkner, a spokesman for the carrier. Competition from such discounters prompted United, Delta Air Lines Inc. and American Airlines Group Inc. to offer a basic economy fare that doesn’t come with the normal amenities of a coach ticket.
“Kirby’s statement simply isn’t true,” Faulkner said.
Frontier in March filed for a U.S. IPO of $100 million, a placeholder amount subject that typically changes and is used to calculate fees. Frontier and Indigo Partners, which acquired the carrier in December 2013, plan to sell shares in the offering.
Representatives for Frontier and Indigo declined to comment about delaying the IPO.
Citigroup Inc., Deutsche Bank AG, Evercore Partners Inc. and JPMorgan Chase & Co. are leading Frontier’s offering. The company plans to list under the symbol FRNT, it said in a filing without specifying a stock exchange.
Indigo is led by veteran airline executive William Franke, who has extensive experience overseeing discount carriers. The firm once controlled Spirit Airlines Inc., which went public in 2011. Indigo is also the largest shareholder in Wizz Air Holdings Plc, a low-fare operator serving Eastern Europe.
https://www.bloomberg.com/news/artic...east-september
Frontier Stalls IPO in the Face of Airfare Brawl With United
By Mary Schlangenstein and Alex Barinka
July 19, 2017, 2:20 PM PDT
- Delay comes as discounter maps expansion of routes, cities
- United Airlines vows to win any competitive battle in Denver
Frontier Airlines pushed back its initial public offering, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United Airlines.
The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings Inc., which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as the second quarter, people familiar with the matter said.
The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United, the third-biggest airline in the U.S.
Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39.
On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers.
‘Our Turf’
Frontier’s plan suggests “that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
“They’re now competing on our turf and trying to be a network carrier in Denver,” Kirby said. “That is a battle I guarantee United will win.”
Frontier already offers connecting flights over Denver, so there’s no change in its business strategy, said Jim Faulkner, a spokesman for the carrier. Competition from such discounters prompted United, Delta Air Lines Inc. and American Airlines Group Inc. to offer a basic economy fare that doesn’t come with the normal amenities of a coach ticket.
“Kirby’s statement simply isn’t true,” Faulkner said.
Frontier in March filed for a U.S. IPO of $100 million, a placeholder amount subject that typically changes and is used to calculate fees. Frontier and Indigo Partners, which acquired the carrier in December 2013, plan to sell shares in the offering.
Representatives for Frontier and Indigo declined to comment about delaying the IPO.
Citigroup Inc., Deutsche Bank AG, Evercore Partners Inc. and JPMorgan Chase & Co. are leading Frontier’s offering. The company plans to list under the symbol FRNT, it said in a filing without specifying a stock exchange.
Indigo is led by veteran airline executive William Franke, who has extensive experience overseeing discount carriers. The firm once controlled Spirit Airlines Inc., which went public in 2011. Indigo is also the largest shareholder in Wizz Air Holdings Plc, a low-fare operator serving Eastern Europe.
07-21-2017, 07:56 PM
#14
Gets Weekends Off
Joined APC: Jun 2016
Posts: 629
Looks like the investment community isn't too happy about it:
https://www.bloomberg.com/news/artic...east-september
Frontier Stalls IPO in the Face of Airfare Brawl With United
By Mary Schlangenstein and Alex Barinka
July 19, 2017, 2:20 PM PDT
- Delay comes as discounter maps expansion of routes, cities
- United Airlines vows to win any competitive battle in Denver
Frontier Airlines pushed back its initial public offering, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United Airlines.
The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings Inc., which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as the second quarter, people familiar with the matter said.
The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United, the third-biggest airline in the U.S.
Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39.
On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers.
‘Our Turf’
Frontier’s plan suggests “that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
“They’re now competing on our turf and trying to be a network carrier in Denver,” Kirby said. “That is a battle I guarantee United will win.”
Frontier already offers connecting flights over Denver, so there’s no change in its business strategy, said Jim Faulkner, a spokesman for the carrier. Competition from such discounters prompted United, Delta Air Lines Inc. and American Airlines Group Inc. to offer a basic economy fare that doesn’t come with the normal amenities of a coach ticket.
“Kirby’s statement simply isn’t true,” Faulkner said.
Frontier in March filed for a U.S. IPO of $100 million, a placeholder amount subject that typically changes and is used to calculate fees. Frontier and Indigo Partners, which acquired the carrier in December 2013, plan to sell shares in the offering.
Representatives for Frontier and Indigo declined to comment about delaying the IPO.
Citigroup Inc., Deutsche Bank AG, Evercore Partners Inc. and JPMorgan Chase & Co. are leading Frontier’s offering. The company plans to list under the symbol FRNT, it said in a filing without specifying a stock exchange.
Indigo is led by veteran airline executive William Franke, who has extensive experience overseeing discount carriers. The firm once controlled Spirit Airlines Inc., which went public in 2011. Indigo is also the largest shareholder in Wizz Air Holdings Plc, a low-fare operator serving Eastern Europe.
https://www.bloomberg.com/news/artic...east-september
Frontier Stalls IPO in the Face of Airfare Brawl With United
By Mary Schlangenstein and Alex Barinka
July 19, 2017, 2:20 PM PDT
- Delay comes as discounter maps expansion of routes, cities
- United Airlines vows to win any competitive battle in Denver
Frontier Airlines pushed back its initial public offering, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United Airlines.
The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings Inc., which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as the second quarter, people familiar with the matter said.
The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United, the third-biggest airline in the U.S.
Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39.
On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers.
‘Our Turf’
Frontier’s plan suggests “that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
“They’re now competing on our turf and trying to be a network carrier in Denver,” Kirby said. “That is a battle I guarantee United will win.”
Frontier already offers connecting flights over Denver, so there’s no change in its business strategy, said Jim Faulkner, a spokesman for the carrier. Competition from such discounters prompted United, Delta Air Lines Inc. and American Airlines Group Inc. to offer a basic economy fare that doesn’t come with the normal amenities of a coach ticket.
“Kirby’s statement simply isn’t true,” Faulkner said.
Frontier in March filed for a U.S. IPO of $100 million, a placeholder amount subject that typically changes and is used to calculate fees. Frontier and Indigo Partners, which acquired the carrier in December 2013, plan to sell shares in the offering.
Representatives for Frontier and Indigo declined to comment about delaying the IPO.
Citigroup Inc., Deutsche Bank AG, Evercore Partners Inc. and JPMorgan Chase & Co. are leading Frontier’s offering. The company plans to list under the symbol FRNT, it said in a filing without specifying a stock exchange.
Indigo is led by veteran airline executive William Franke, who has extensive experience overseeing discount carriers. The firm once controlled Spirit Airlines Inc., which went public in 2011. Indigo is also the largest shareholder in Wizz Air Holdings Plc, a low-fare operator serving Eastern Europe.
"that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
Right. One of the highest if not the highest profit margins and the highest load factor. But it's not working.
Funny.
07-21-2017, 08:24 PM
#15
Gets Weekends Off
Joined APC: Oct 2010
Posts: 2,639
07-23-2017, 08:23 AM
#16
Line Holder
Joined APC: Dec 2014
Posts: 83
Every week there's a PR thread or bizrag article with which guys take umbrage. It's weird.
My suggestion is just show up on time, cool the jet, help the other guy, don't be a dick and then go home and enjoy your time off. Stop reading the drivel. Most of it us usually written by people who have almost no real idea about the industry or how it functions. Why get amped up about things over which you have zero control? Your blood pressure will thank you as you near retirement. There is more to life than a goofy hat and epaulets.
My suggestion is just show up on time, cool the jet, help the other guy, don't be a dick and then go home and enjoy your time off. Stop reading the drivel. Most of it us usually written by people who have almost no real idea about the industry or how it functions. Why get amped up about things over which you have zero control? Your blood pressure will thank you as you near retirement. There is more to life than a goofy hat and epaulets.
Well said!
Sent from my iPad using Tapatalk
07-23-2017, 10:13 AM
#17
Gets Weekends Off
Joined APC: Nov 2010
Posts: 1,785
Analysts and the market are focused on short-term profits and they love capacity constraint and avoiding competition. Employees' interests are aligned with the long-term success of their airline which also seems to be Kirby's focus. Time will tell.
My suggestion is just show up on time, cool the jet, help the other guy, don't be a dick and then go home and enjoy your time off. Stop reading the drivel. Most of it us usually written by people who have almost no real idea about the industry or how it functions. Why get amped up about things over which you have zero control? Your blood pressure will thank you as you near retirement. There is more to life than a goofy hat and epaulets.
07-26-2017, 06:28 AM
#18
Gets Weekends Off
Joined APC: Jul 2017
Posts: 123
As a Frontier Pilot...
I can tell you ALPA and all of us are doing everything we can to get our wages up to par. This way, it won't be so easy for Frontier to undercut your prices. You guys are our brothers, many of us commute on each other. I don't want anything other than to see all of us doing well.
07-26-2017, 10:18 AM
#19
Gets Weekends Off
Joined APC: Apr 2011
Position: CW20
Posts: 130
Kirby management playground blather...
[https://www.thestreet.com/story/1424...t-upstart.html
With all due respects to seasoned airline industry analyst Ms. Schlagenstein.....��. Bloomberg ain't the only news source, quoting a management hack is gonna do little for ones financial prowess....
QUOTE=Winston;2397909]Looks like the investment community isn't too happy about it:
https://www.bloomberg.com/news/artic...east-september
Frontier Stalls IPO in the Face of Airfare Brawl With United
By Mary Schlangenstein and Alex Barinka
July 19, 2017, 2:20 PM PDT
- Delay comes as discounter maps expansion of routes, cities
- United Airlines vows to win any competitive battle in Denver
Frontier Airlines pushed back its initial public offering, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United Airlines.
The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings Inc., which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as the second quarter, people familiar with the matter said.
The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United, the third-biggest airline in the U.S.
Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39.
On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers.
‘Our Turf’
Frontier’s plan suggests “that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
“They’re now competing on our turf and trying to be a network carrier in Denver,” Kirby said. “That is a battle I guarantee United will win.”
Frontier already offers connecting flights over Denver, so there’s no change in its business strategy, said Jim Faulkner, a spokesman for the carrier. Competition from such discounters prompted United, Delta Air Lines Inc. and American Airlines Group Inc. to offer a basic economy fare that doesn’t come with the normal amenities of a coach ticket.
“Kirby’s statement simply isn’t true,” Faulkner said.
Frontier in March filed for a U.S. IPO of $100 million, a placeholder amount subject that typically changes and is used to calculate fees. Frontier and Indigo Partners, which acquired the carrier in December 2013, plan to sell shares in the offering.
Representatives for Frontier and Indigo declined to comment about delaying the IPO.
Citigroup Inc., Deutsche Bank AG, Evercore Partners Inc. and JPMorgan Chase & Co. are leading Frontier’s offering. The company plans to list under the symbol FRNT, it said in a filing without specifying a stock exchange.
Indigo is led by veteran airline executive William Franke, who has extensive experience overseeing discount carriers. The firm once controlled Spirit Airlines Inc., which went public in 2011. Indigo is also the largest shareholder in Wizz Air Holdings Plc, a low-fare operator serving Eastern Europe.[/QUOTE]
With all due respects to seasoned airline industry analyst Ms. Schlagenstein.....��. Bloomberg ain't the only news source, quoting a management hack is gonna do little for ones financial prowess....
QUOTE=Winston;2397909]Looks like the investment community isn't too happy about it:
https://www.bloomberg.com/news/artic...east-september
Frontier Stalls IPO in the Face of Airfare Brawl With United
By Mary Schlangenstein and Alex Barinka
July 19, 2017, 2:20 PM PDT
- Delay comes as discounter maps expansion of routes, cities
- United Airlines vows to win any competitive battle in Denver
Frontier Airlines pushed back its initial public offering, people familiar with the matter said, as competitive tensions flared between the no-frills carrier and United Airlines.
The share sale could slip until September or later, said the people, who asked not to be identified because the matter is private. Frontier Group Holdings Inc., which is backed by private equity firm Indigo Partners, had been planning to hold the IPO as soon as the second quarter, people familiar with the matter said.
The delay comes as Frontier prepares to more than double routes -- an expansion that drew a warning from United President Scott Kirby. He vowed to stave off any attempt by Frontier to grab a bigger share of the Denver market. The discount carrier is based in the city, which is the most profitable hub for United, the third-biggest airline in the U.S.
Frontier on Tuesday detailed plans to add 21 cities to its network and more than double total routes by mid-2018, while offering limited-time fares for as low as $39.
On Wednesday, Kirby said the expansion means that Frontier is moving toward a network more like United’s, with connecting flights through major airports instead of focusing on the point-to-point service typically favored by low-cost carriers.
‘Our Turf’
Frontier’s plan suggests “that the old business model has run out of growth opportunities in the middle of an IPO process,” he said in a conference call after United reported earnings.
“They’re now competing on our turf and trying to be a network carrier in Denver,” Kirby said. “That is a battle I guarantee United will win.”
Frontier already offers connecting flights over Denver, so there’s no change in its business strategy, said Jim Faulkner, a spokesman for the carrier. Competition from such discounters prompted United, Delta Air Lines Inc. and American Airlines Group Inc. to offer a basic economy fare that doesn’t come with the normal amenities of a coach ticket.
“Kirby’s statement simply isn’t true,” Faulkner said.
Frontier in March filed for a U.S. IPO of $100 million, a placeholder amount subject that typically changes and is used to calculate fees. Frontier and Indigo Partners, which acquired the carrier in December 2013, plan to sell shares in the offering.
Representatives for Frontier and Indigo declined to comment about delaying the IPO.
Citigroup Inc., Deutsche Bank AG, Evercore Partners Inc. and JPMorgan Chase & Co. are leading Frontier’s offering. The company plans to list under the symbol FRNT, it said in a filing without specifying a stock exchange.
Indigo is led by veteran airline executive William Franke, who has extensive experience overseeing discount carriers. The firm once controlled Spirit Airlines Inc., which went public in 2011. Indigo is also the largest shareholder in Wizz Air Holdings Plc, a low-fare operator serving Eastern Europe.[/QUOTE]
Last edited by DC7C; 07-26-2017 at 10:21 AM. Reason: Add
07-26-2017, 10:24 AM
#20
Gets Weekends Off
Joined APC: Apr 2011
Position: CW20
Posts: 130
Best post of the year...
How to live long and prosper🤜
QUOTE=oldmako;2397043]Every week there's a PR thread or bizrag article with which guys take umbrage. It's weird.
My suggestion is just show up on time, cool the jet, help the other guy, don't be a dick and then go home and enjoy your time off. Stop reading the drivel. Most of it us usually written by people who have almost no real idea about the industry or how it functions. Why get amped up about things over which you have zero control? Your blood pressure will thank you as you near retirement. There is more to life than a goofy hat and epaulets.
[/QUOTE]
QUOTE=oldmako;2397043]Every week there's a PR thread or bizrag article with which guys take umbrage. It's weird.
My suggestion is just show up on time, cool the jet, help the other guy, don't be a dick and then go home and enjoy your time off. Stop reading the drivel. Most of it us usually written by people who have almost no real idea about the industry or how it functions. Why get amped up about things over which you have zero control? Your blood pressure will thank you as you near retirement. There is more to life than a goofy hat and epaulets.
[/QUOTE]
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