Fight or Flight?

Over the past several years, I have been saying repeatedly that this industry is in the infancy stages of metamorphosis. The development over the last week or so with four airlines closing their doors is part of this morphing. We are now seeing more intense conversations of mergers and/or possible acquisitions. It is my opinion that by the end of 2010 we will see a very different airline industry here in the States.

This brings me to Frontier's Chapter 11 filing last week. When the public first learned of the filing, there was a definite dichotomy in the reaction. Investors hit the panic button until they learned the facts of the filing. Living and working here in Denver, it has been very interesting as a "bystander" watching, reading and viewing the local, public reaction. Interestingly enough, the flying public embraced Frontier and rallied behind their efforts, unlike some of the more public figures in the city.

The newspapers locally were quick to jump on the “drama” bandwagon by printing such uninformed headlines as “Buckle Up.” They were not the only “news” (and I use that term loosely) organization to seek the drama spotlight. One news reporter in Seattle appeared on the air telling the flying public he would not fly Frontier because of the latest filing. It left me wondering “why?” What is he basing his haphazard quip on? Facts? Does he understand what chapter 11 really means or how it is intended to be used in business?

When did the “news” stop reporting the news and start focusing on drama and rumor? Now I understand ratings and the mad-scramble to compete with the Internet and other media, but honestly folks…doesn’t the “news” have a responsibility to perform due diligence to obtain the facts before reporting a story? Where do they get their information? I know, I know, they listen to aviation analysts. Ok, well then I have to ask how reliable the analysts’ opinions are; the folks who are, by some, considered as “experts” (another term I use loosely.) Why is it that most of the analysts jumped on the very same bandwagon of presiding over Frontier’s funeral? Why are they not addressing the factual basis of chapter 11? Are they insecure in themselves or their job? Or perhaps they desperately need attention? How sad. To my knowledge, the only analyst to perform due diligence and actually speak intelligently about the facts of Frontier’s filing is Michael Boyd of The Boyd Group. I respect the Boyd Group for reporting the facts - a refreshing change.

Frontier certainly has a loyal following right here in Denver and I, for one, applaud the public for not succumbing to the knee-jerk reactions from the media “stories” but to instead take the time to read and understand the facts.

Before making any assumptions regarding career choices, or even purchasing airline tickets, do your own due diligence and take the time to educate yourself.

• Frontier has publicized their position and all documentation on their website: http://www.frontierairlines.com/restructure/

• Michael Boyd’s report – supported by factual substance – can be found here: http://www.aviationplanning.com/asrc1.htm


Regards,
Lori Clark