http://phx.corporate-ir.net/phoenix.zhtml?c=131107&p=irol-newsArticle&ID=1301620&highlight=
http://phx.corporate-ir.net/phoenix.zhtml?c=131107&p=irol-newsArticle&ID=1301191&highlight=
Introduction
Republic Airways is led by a talented group of executives. Within the past week they have purchased Midwest and Frontier Airlines. The Frontier deal still needs approval from the Bankruptcy court where their case has been filed. There does not appear to be any other bidders for Frontier in this deal. Frontier declared bankruptcy over a year ago. They have done a remarkable job turning their operation around and are now profitable. That says a lot about an operation when facing stiff competition on their home turf. Denver has three dominant carriers, Frontier, United, and Southwest. This is the smallest market to have three airlines hubbed at its airport. JFK, in New York City, has Delta, JetBlue and American. LAX, in Los Angeles, has American, United and Southwest.
Republic will be forced to operate Frontier and Midwest on a separate certificate to avoid scope clauses in their contracts with other major airlines. Republic now has some serious questions to answer.
Risks:
This is a large integration and a risky venture. Besides taking on a lot of new headaches (mergers are never easy, just ask Doug Parker at US Airways) Republic risks angering their partners. When contracts come up for renewal a major carrier like Continental may choose not to renew their regional flying with Republic because they are now competing on a larger scale with the same company. This could cause Republic some growing pains until the operation is large enough to sustain itself. If these contracts are not renewed it is possible that Republic will be left paying a lot of expensive leases on planes they are unable to fly. This cost can add up fast and may force the company into bankruptcy. Excessive debt is another problem. As we have seen with Mesa Airlines in the past year excessive debt could really down a company fast. If payments can not be made Republic may be forced to settle with the debt holders and risks angering their stock holders.
Mitigating that risk
Republic is in a unique situation. Midwest was already being wound down and was planning on removing their 717's before this deal. Midwest had become a shell of its former self. There are very few people left on staff, so integration should be rather simple from a human resources point of view. Frontier already has the authority to do all the flying Republic will require, so it should be almost as simple as relocating some mainline flying to cover the largest markets Midwest currently serves. In the event that contracts are not renewed Republic has a few places it can place airplanes. Its joint venture in Hawaii is one place they can go besides the new integrated Frontier/Midwest operation. These two options should allow enough growth to mitigate any risk Republic will run by angering their other partners.
What do you do with the Midwest operation?
The 717's are all leaving, to be replaced by Republic EMB-190's. Midwest was on path to become a shell for Republic to deploy some assets as they came off contract from other carriers. Regional Jets are at a cost disadvantage when compared to the other airlines' larger, mainline fleets. Southwest is moving into Milwaukee and will pose formidable competition for Midwest.
What do you do with the Frontier operation?
Frontier has a lot of competition in Denver, which is their only hub. Southwest has grown exponentially since entering the market, and United is still a formidable opponent that will continue to defend their turf. Frontier has turned their operation around in the past year, and is currently making a profit. They have taken some great steps with ancillary revenue and have a strong management team in place.
My expectations
If I was in charge of this integration I would take the following steps:
1) Execute an immediate code-sharing agreement between Midwest and Frontier. Use this to cross promote flights and market services for both airlines across the newly formed system.
2) Distribute the larger aircraft (A320 Series) to biggest markets. This will ensure the best return for the airline and will help Republic begin to grow and integrate the network. While redistributing the A320 series planes, reduce unprofitable service from Denver, Milwaukee, and Kansas City. Use this opportunity to right size the fleet and services. There is a possibility here of reducing Kansas City to a focus city or just a spoke.
3) Merge the airlines under one brand. Use one certificate to manage all of this flying and use the extra certificate to obtain new code-share agreements with other airlines. This will help them avoid more scope clause issues and put more planes into service. Use this time to implement the best features from the separate airlines across the system, while getting rid of the worst attributes. This will help the new airline gain notoriety as customer focused and a good value for the customers money. It will also help the new airline be profitable and compete successfully in a difficult market.
4) Introduce new flights to destinations already served by either airline. This will increase productivity and open new markets for both airlines. Also be sure to increase service between hubs in order to increase connectivity.
5) Grow the Denver and Milwaukee market to obtain proper economies of scale in order to better compete with the major airlines. Use this opportunity to open new markets and solidify their position in their current markets. This is a perfect time to create good connectivity from between the coasts. With two well positioned hubs, in Denver and Milwaukee, the new airline should be able to compete with the other majors.
6) Open a new hub on the East Coast to grow their operation and become a national airline. As the airline becomes larger it will be less susceptible to competition from new entrants in a market. It will also give them the economics to reduce their Cost per Available Seat Mile. By spreading their fixed costs across more seats and more markets the airline will be profitable at lower prices and be able to gain market share with reduced prices.
Conclusions
This plan will take many years to implement and it will not be an easy road. Republic is in a unique position to capitalize on a down market. They are getting two airlines at fantastic prices because of the economic troubles in the world. If Republic commits to their plan (whichever plan they choose) and it works the company stands to make a great deal of profit. If the new airline can remain profitable for a short time Republic might even be able to spin them off in an IPO and make some serious cash in a short amount of time.
Republic is one of the largest and best run regional airlines in the country. I am very excited to see how they compete with the majors. These large, national airlines will defend turf harshly. They do not want new entrants making inroads to their markets. We have entered a new era of aviation, where regional airlines are expanding their reach and operations. Republic is on the leading edge of the market and will be the guinea pig for the new airline industry.
Tuesday, June 23, 2009
Thursday, June 11, 2009
Blowout sale at CJ's Diecast
Here is the flier I just posted on my website.
http://www.cjsdiecast.com/blowout.html
Another blowout sale is here at CJ's Diecast!!!
These prices are good from now until all models are sold.
All items are new in box unless otherwise stated.
Pictures of actual models available upon request.
Quantity in stock is 1 unless otherwise noted.
First come first served.
I will match any prices found on the internet (except eBay). To be elegible you must include a link to the store's page for the product.
If there is a model listed as new and used please specify which one you would like to purchase.
All used models are in good condition and pictures can be provided upon request.
Prices listed are lowest available. Trades considered as well.
Domestic United States orders will receive the following shipping prices:
1/400 and 1/500 Scale:
$5.00 for the first model and $0.75 for each additional model.
5x Display stands will ship for $5.00.
If one display stand is bought with an airplane it will ship in the same box for free.
1/200 Scale:
$7.00 for the first model and $1.00 for each additional model.
All orders over $100 will qualify for FREE USPS Priority Mail.
All shipments are via USPS Priority Mail.
International customers please contact me for a quote to your country.
I ship exclusively through USPS Priority Mail International as it is Insured and has tracking available.
Shipping rates will vary, but you will only be charged actual costs.
Orders over $100 will receive a discount of $10 off USPS Priority Mail International rates.
I will update this list items sell.
PayPal, checks, money orders accepted.
If paying by check items will ship after check clears my account (typically 5 business days).
If you have questions feel free to email!
If you are looking for something not on the list please let me know so I can try to get it for you.
Thanks for looking!!
-Chris
I also have a 1:24 scale Stock Car. Tony Stewart Home Depot Car from Action Collectibles. This was his 2004 car. I am asking $35 for this item and it will ship at 1/200 scale pricing.
NEW ADDITIONS 1/400 Scale Aircraft
| Model Maker | Description | Item # | Price |
| Gemini Jets | Air Transat A330-200 from St. Marten 3-Pack (This is an individual plane just in the plastic cradle, I do not have the box) | GJSXMSET1 | $15.00 |
| Gemini Jets | America West 757-200 Last Colors | GJAWE696 | $20.00 |
| Jet-x | Braniff International 720 Green | JX113 | $15.00 |
| Gemini Jets | Continental Connection (Colgan Air) Q-400 (x2) | GJCOA863 | $19.00 |
| Gemini Jets | Continental Express (Expressjet) ERJ-145 (x5) SOLD OUT AT DISTRIBUTORS AND OTHER RETAILERS | GJCOA623 | $30.00 |
| Gemini Jets | Delta Connection ERJ-145 "800th ERJ" Scheme (x2) SOLD OUT AT DISTRIBUTORS AND OTHER RETAILERS | GJDAL618 | $30.00 |
| US Airways A319 "Eagles" Scheme | $20.00 |
1/400 Scale Aircraft
| Model Maker | Description | Item # | Price |
| Gemini Jets | Air Wisconsin BAE-146 | GJAWI760 | $15.00 |
| Gemini Jets | Alaska Airlines 737-900 (x2) | GJASA818 | $22.00 |
| Gemini Jets | Aloha Airlines 737-200 Last Colors (X2) | GJAAH455 | $22.00 |
| Gemini Jets | American Airlines 737-800 Winglets | GJAAL914 | $21.00 |
| Gemini Jets | American Airlines 777-200 | GJAAL328 | $25.00 |
| Gemini Jets | American Airlines MD-11 | GJAAL262 | $20.00 |
| Gemini Jets | America West Airlines A320 Last Colors | GJAWE531 | $22.00 |
| Gemini Jets | America West Airlines CRJ-200 Last Colors | GJAWE514 | $16.00 |
| Gemini Jets | ATA DC-10 Silver | GJATA632 | $20.00 |
| Gemini Jets | British Airways 747-400 "One World" | GJBAW917 | $29.00 |
| Gemini Jets | Continental Airlines 757-300 Current Colors | GJCOA896 | $19.00 |
| Gemini Jets | Continental Airlines DC-10 Current Colors | GJCOA080 | $20.00 |
| Gemini Jets | Delta Air Lines 757-200 New Colors | GJDAL884 | $19.00 |
| Gemini Jets | Delta Air Lines 777-200 (x2) | GJDAL777 | $25.00 |
| Herpa Wings | Delta Air Lines (Connection) EMB-170 "DF" (x2) | HE561877 | $17.00 |
| Gemini Jets | Emirates Airlines A380 (x2) | GJUAW650 | $30.00 |
| Gemini Jets | Emirates Airlines 777-300 | GJUAE895 | $23.00 |
| Gemini Jets | FedEx 757-200F (x2) | GJFDX828 | $21.00 |
| Gemini Jets | PeoplExpress 727-200 | GJPEX794 | $17.00 |
| Gemini Jets | Southwest Airlines 737-700 Winglets IL One | GJSWA897 | $18.00 |
| Gemini Jets | United Airlines CRJ-700 New Colors | GJUAL868 | $17.00 |
| Gemini Jets | US Airways 737-400 New Colors (x3) | GJUSA898 | $19.00 |
| Gemini Jets | US Airways 767-200 Blue Colors | GJUSA426 | $19.00 |
| Gemini Jets | US Airways 767-200 Blue Colors Used | GJUSA426 | $12.00 |
| Gemini Jets | US Airways A319 Cardinals | GJUSA890 | $19.00 |
| Gemini Jets | US Airways A321 New Colors | GJUSA899 | $19.00 |
| Gemini Jets | US Airways BAE-146 Chrome/Maroon | GJUSA762 | $17.00 |
| Gemini Jets | US Airways CRJ-200 Blue Colors | GJUSA334 | $17.00 |
| Gemini Jets | US Airways CRJ-700 Blue Colors (x2) | GJUSA908 | $20.00 |
1/400 Scale Accessories
Model Maker | Description | Item # | Price |
| Gemini Jets | Airbridge Set 1 (6 Narrowbody) (x3) | GJARBRDG1 | $15.50 |
| Gemini Jets | Airbridge Set 2 (3 Widebody) (x3) | GJARBRDG2 | $15.50 |
| Gemini Jets | Chrome Stand (x5) | GJSTD777 | $4.00 |
| Herpa Wings | Winter Service Vehicles Pack (x3) | HE560443 | $15.50 |
1/200 Scale Models
Model Maker | Description | Item # | Price |
| Inflight 200 | Aer Lingus 737-200 | IF732017 | $60.00 |
| Gemini Jets | Aer Lingus A321 | G2EIN058 | $49.00 |
| Gemini Jets | AirTran 737-700 Winglets (x2) | G2TRS064 | $49.00 |
| Gemini Jets | Delta Air Lines 737-800 Winglets "Delta Flot" | G2DAL065 | $42.00 |
| Gemini Jets | Delta Air Lines 757-200 Widget | G2DAL061 | $53.00 |
| Inflight 200 | Iberia DC-9 "EC-BIH" | IF932017 | $55.00 |
| Gemini Jets | Monarch A321 | G2MON016 | $35.00 |
| Gemini Jets | Qantas Link DASH-8 Q-100 | G2QFA152 | $35.00 |
| Gemini Jets | Southwest Airlines 737-700 Winglets Maryland One | G2SWA063 | $42.00 |
| Gemini Jets | United Airlines A319 Grey Colors | G2UAL019 | $42.00 |
1/500 Scale Models (ALL USED)
Model Maker | Description | Item # | Price |
| Herpa Wings | Air Canada A330-300 | HE508391 | $5.00 |
| Herpa Wings | American Airlines 737-800 Retro | HE505765 | $5.00 |
| Herpa Wings | Boeing 727-100 House Colors "Boeing Milestone Series" | HE510820 | $10.00 |
| Herpa Wings | Boeing 737-400 House Colors | HE501293 | $5.00 |
| Herpa Wings | Boeing 737-500 House Colors | HE505444 | $5.00 |
| Herpa Wings | Boeing 737-600 House Colors | HE511056 | $5.00 |
| Herpa Wings | Boeing 737-700 House Colors | HE511063 | $5.00 |
| Herpa Wings | Boeing 737-800 House Colors (x2) | HE511070 | $5.00 |
| Herpa Wings | Boeing 757-200 House Colors (x2) | HE503679 | $5.00 |
| Herpa Wings | Boeing 767-300 House Colors | HE502832 | $5.00 |
| Herpa Wings | Delta Air Lines MD-11 1997 Scheme | HE503327 | $5.00 |
| Herpa Wings | Lufthansa 747-400 "Berlin" Exclusive | HE516112 | $5.00 |
CJ's Diecast & Collectibles
13401 Dumas Road
#J-201
Mill Creek, WA 98012
908-566-8777
cjs.diecast@gmail.com
CJ's Diecast & Collectibles
331 Rolling Knolls Way
Bridgewater, NJ 08807
908-566-8777
cjs.diecast@gmail.com
Linn Energy (LINE)
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20090611&id=10003095
Some apparent neutral news here on my largest holding Linn Energy (NASDAQ:LINE). Mark Ellis will take the helm in January and replace Michael Linn as CEO. Ellis is currently President and COO of the company. Linn will stay on as Executive Chairman of the Board.
Not bad news by any stretch as Linn has done a fantastic job running this company and will not go completely hands off. When Ellis takes the helm in January he will have about 3 years in the COO position behind him, so hopefully some good experience. Ellis has been in the industry for many years and has served in leadership roles in some large multi-national companies.
I am excited to see what direction Ellis steers the company towards. LINE is a very solid stock with a great dividend ($0.63/share last quarter) which yields just about 12.5% at the present time. Michael Linn has said the dividend is secure for the next three years as they are hedged near 100% for the next three years.
Overall not a bad spot for profits. I bought in at $16.39 a little over a month ago and the stock is hovering around $20. No complaints here!
Some apparent neutral news here on my largest holding Linn Energy (NASDAQ:LINE). Mark Ellis will take the helm in January and replace Michael Linn as CEO. Ellis is currently President and COO of the company. Linn will stay on as Executive Chairman of the Board.
Not bad news by any stretch as Linn has done a fantastic job running this company and will not go completely hands off. When Ellis takes the helm in January he will have about 3 years in the COO position behind him, so hopefully some good experience. Ellis has been in the industry for many years and has served in leadership roles in some large multi-national companies.
I am excited to see what direction Ellis steers the company towards. LINE is a very solid stock with a great dividend ($0.63/share last quarter) which yields just about 12.5% at the present time. Michael Linn has said the dividend is secure for the next three years as they are hedged near 100% for the next three years.
Overall not a bad spot for profits. I bought in at $16.39 a little over a month ago and the stock is hovering around $20. No complaints here!
Sunday, June 7, 2009
Visit CJ's Diecast
Visit CJ's Diecast. We carry a full range of Gemini Jets, Herpa Wings, and other aviation collectibles.
Welcome!!!!!
Welcome to Crash's Business Briefs Blog. I will periodically create new entries about happenings in the business world. Most of the posts will be related to aviation, my investing activities, and my small business, CJ's Diecast.
If you have questions post them here or drop me an email and I will respond. I look forward to having some good discussions and debates with everyone in the future. Thanks for checking out my blog!
-Chris
If you have questions post them here or drop me an email and I will respond. I look forward to having some good discussions and debates with everyone in the future. Thanks for checking out my blog!
-Chris
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