Frontiers Airlines will be bought by investment firm Indigo Partners in a move which could expand the ultra low-cost airline industry a press release reported.
"This transaction is a direct result of Frontier's successful restructuring, continued cost reduction efforts and laser focus on revenue generation," Republic Airways chairman, president and chief executive officer Bryan Bedford said in a statement. "I am confident that Frontier will enjoy future growth as Indigo continues the process to position the airline as a leading ultra-low cost carrier in the United States.
"I want to thank all Frontier employees for their hard work in returning their company to profitability and to the many team members who brought this deal to a successful conclusion," he said.
Indigo Partners agreed to buy the low-cost airline from Republic for $36 million in cash and $109 million in debt the press release reported.
"We continue to be excited about the growth of our fixed-fee operations. Our airline partner brands, including American Eagle, Delta Connection, United Express and US Airways Express, have a bright future at Republic Airways," Republic chief executive Bryan Bedford said in a statement.
The transaction, and the terms of flight attendants and pilots must be completed with the Association of Flight Attendants and FAPAInvest LLC by Oct. 31 the press release reported. Contracts with commercial services must also be done by months end. The transaction also depends on the United States Federal Communications Commission approving the transfer of Frontier's radio licenses, signatures from commercial companies, along with releases and other conditions necessary for the deal's closing. If all goes through, the deal would be completed in December of this year.
"We are appreciative of the support provided by key third-party constituents in the development of this transaction and are hopeful that FAPAInvest LLC and the AFA will provide the support that is critical to closing," Indigo managing partner William Franke said in a statement.
