Frontier Airlines may have found a new owner
Republic Airways plans to expand regional carrier ownership
Tom Stundza -- Purchasing, 6/24/2009 12:18:48 PM
Frontier Airlines Holdings could be acquired out of bankruptcy court this summer by Republic Airways Holdings for $108.8 million. If the deal goes through, Frontier Airlines and affiliate Lynx Aviation will have a new owner but will maintain their current names "and continue to operate as usual," according to a company statement.
While reorganizing in bankruptcy court, Frontier's two carriers have become "two of the most efficient operating carriers in North America" and have diversified their revenue streams, CEO Sean Menke says in a statement. The Republic buyout plan is subject to the prospect that other bidders might offer better terms in a court-supervised auction set for July 13.
If the deal goes through, Indianapolis-based Republic Airways will have expanded ownership of regional carriers that already includes Chautauqua Airlines, Republic Airlines and Shuttle America. Republic has grown to be the nation's second largest regional airline behind only SkyWest Airlines and the 11th largest U.S. carrier overall. In May, Republic's various subsidiaries flew 1.12 billion available seat miles to Frontier's 919.2 million.
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might be a good deal for frontier, but if i read it right the share holders will get nothing. it's not to exciting to me.
james cimbura - 6/24/2009 6:25:17 PM EDT
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