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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Kevin K. Spurway who wrote (64861)	7/12/1999 1:20:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 1580035

Kevin - Re: "I guess Frontier didn't have a multi-billion dollar investment made in aircraft which needed to be filled and flown instead of sitting idle on the ground." Sounds like Frontier was SMART ENOUGH to NOT LOAD UP on all those expensive jets BEFORE they had customers to fill them. Paul

To: Kevin K. Spurway who wrote (64861)	7/12/1999 1:34:00 PM
From: tejek	Respond to of 1580035

Kevin RE: " If they did, do you think their business plan would have been different?" First and foremost, my response to F. Fahmy's post was not intended as a rebuke to yours. I simply echoed what Fred had said because of a recent article I had read about Frontier. I was really surprised and impressed with Frontier's approach....it was such a different way to go and frankly it seems that it is human nature to bump heads with a competitor. From my perspective the approach that Frontier and Fred's firm took is a pain in the butt, having to formulate strategies, coming up with clever innovations and developing extraordinary patience........personally l like bumping heads. But the operative words are that the less confrontative approach worked in two cases. Whether it could have worked for AMD, I don't know. Like you said, they have a huge overhead with the two fabs that bleed money when they are not being used. However keep in mind that at least with Frontier, even without a lot of fixed capital improvements, they continued to lose money for some time after they implemented their new strategy before the company ultimately turned around. I am sure they were pretty worried that their new, 'soft' approach may not work. Now would AMD have bled less or more with this approach......I don't know. But I think it is worth looking at all options. I hope you agree. ted