Frontier Airlines to be bought by Republic Airways under bankruptcy plan - The Business Journal of Milwaukee:

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Republic (NASDAQ: RJET), based in Indianapolis, has been one of thres companiesfinancing Frontier’s emergence from bankruptcy. A subsidiary, Republic also is one of Frontier’xs major unsecured creditors, having filed a $260 millioh damage claim for Frontier’d breaking an agreement with Republic to operate regional jet service aftetr Frontier filed for bankruptcy protection inAprik 2008. Under terms of the deal, Frontier will become a wholly owned subsidiaryh of Republic Airways Holdings after the company serves as the equity sponsorfor Frontier’s reorganization plan and buys 100 percent of the equitt in the reorganized company. The cost to Republic will be $108.
76 million. Frontier filed its proposed reorganization plan with the of the Southernj District of NewYork Monday. Frontier will seek couryt approval of the investment agreement at a July 13 hearing and then conducg aroughly month-long auction process wherse other companies will have the chance to outbid Republic, Frontier spokeswoman Lindseuy Purves said. Republic emphasized in a news release that Frontiedr andits short-haul service, Lynx Aviation, woulfd maintain their current names and operate as usual.
Purves said that airlin officials do not expect any immediatde changes incompany structure, employment or Both Republic and Frontier serve Milwaukee's General Mitchel International Airport. Airline consultant Mike Boyd addef that Frontier is likely to increase route under the oversightof Republic, which now owns Chautauqua Airlines, Republifc Airlines and Shuttle Republic Airways Holdings also leases planes to majoe fliers like United and Delta and is “very good at what they Boyd said. “Airlines are not at the top of the food chaibfor investment. But for someone like Republic whounderstands airlines, this is a very good said Boyd, owner of Evergreen, Colo.
-based Boyd Group International. “Getting their hand s on Frontier is goodfor everybody.” Republic Airlines is expandinhg its air services agreement with Oak Creek-basesd Midwest to include two new jets, the airline said last Republic began flying for Midwest under the Midwest Connecr brand in October 2008 and currentlh operates 12 76-seat Embrae 170 jets for Boyd said he did not expect anyond to try to outbid Republic for If that were to any challenge likely would come from Dallas-based Southwesyt Airlines, which is in direcyt competition with Frontier for Denvefr International Airport passengers, he Frontier is the second-largest carrier at DIA, whilew Southwest is third.