Frontier Airlines to be sold to private-equity group

Discussion in 'Frontier Airlines | EarlyReturns' started by sobore, Oct 2, 2013.

  1. sobore
    Original Member

    sobore Gold Member

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    With Frontier Airlines' new buyer pledging to make it a contender in the ultra low-cost corner of the airline industry, the carrier may shift some focus away from its Denver base, industry watchers say.
    Republic Airways Holdings said Tuesday that it has agreed to sell Frontier to an affiliate of the private-equity firm Indigo Partners, a key early investor in ultra-low-cost carrier Spirit Airlines.

    Indigo's affiliate will pay $36 million in cash, and assume roughly $109 million in Frontier's debt. Republic will also receive another $32 million as reimbursement for deposits on some jet purchases.
    Republic and Indigo said that once the sale is completed, the plan is to continue trying to position Frontier, a small carrier possibly best known for the colorful animals on its fleet's tails and its devoted customer base in Denver, as an ultra-low cost carrier in the same vein as Spirit or Allegiant.

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  2. MSYgirl

    MSYgirl Gold Member

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    Update here.

    Short excerpt:

    Indigo Partners LLC is going ahead with plans to buy Frontier Airlines, even though it failed to reach an agreement with the carrier's flight attendants' union.

    The Phoenix-based firm agreed at the end of September to purchase Frontier from parent company Republic Airways Holdings on the condition it could successfully negotiate agreements with the pilots and flight attendants.

    Indigo Partners said Friday it reached a tentative labor deal with pilots. In a statement late Wednesday, the firm said that agreement has not been reached with the Association of Flight Attendants, but it will waive that condition.

    The deal, which is now based on equity and business conditions, is expected to close later this month pending regulatory approval. Indigo said Thursday the sale price wasn't available but earlier reports said the firm was buying Frontier for $36 million plus assumed debt.
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