Republic aims to complete Frontier buy this fall

Republic Airways Holdings confirmed late Thursday that it had been declared the winner in the court-monitored auction for bankrupt Frontier Airlines and plans to purchase the Denver-based carrier when it emerges from Chapter 11, likely in the fall.

Republic was chosen by a US Bankruptcy Court over Southwest Airlines, which saw its $170 million bid falter when its pilots could not come to agreement with Frontier's pilots on work rules and seniority (ATWOnline, Aug. 14). SWA declined to remove a clause from its bid requiring an agreement between pilot unions because it said it did not want to risk disrupting its relationship with its pilots.

Indianapolis-based Republic, which already owns Chautauqua Airlines, Midwest Airlines, Mokulele Airlines, Republic Airlines and Shuttle America, agreed to purchase 100% of the stock of Frontier upon its emergence from bankruptcy for $108.8 million and also agreed to "waive any right to recovery on its $150 million general unsecured claim." It has said it will operate Frontier as an independent subsidiary that along with regional arm Lynx Aviation will maintain their current names and continue to operate as usual.

"I look forward to welcoming Frontier to our Republic family," President and CEO Bryan Bedford said. "Frontier has made impressive strides in returning to sustained profitability in a challenging and uncertain economic environment. . .Their commitment and perseverance during the bankruptcy process has allowed the Frontier brand to survive and thrive."

Frontier President and CEO Sean Menke added that Republic's winning bid marked "the beginning of a wonderful new chapter. . .We are pleased to have Republic as a plan sponsor that will allow Frontier to emerge from bankruptcy as a well-financed, competitive and sustainable airline." He said Republic's planned purchase "is also great news because it is expected to preserve the jobs of most Frontier employees."