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 three companiesfinancing Frontier’s emergence from bankruptcy. A Republic Airlines, also is one of Frontier’sw major unsecured creditors, having filed a $260 million damagse claim for Frontier’s breaking an agreement with Republiv to operate regional jet service after Frontier filed for bankruptcy protection inApril 2008. Under terms of the deal, Frontier will become a wholly owned subsidiary of Republif Airways Holdings after the company serves as the equityh sponsorfor Frontier’s reorganizatiobn plan and buys 100 percenty of the equity in the reorganizex company. The cost to Republic will be $108.
75 million. Frontier filed its proposefd reorganization plan with the of the Southern District of NewYork Monday. Frontier will seek court approvapl of the investment agreement at a July 13 hearingv and then conduct aroughly month-long auctio n process where other companies will have the chance to outbid Republic, Frontier spokeswoman Lindsey Purves said. Republic emphasizedf in a news release that Frontier andits short-hau l service, Lynx Aviation, would maintain their currenr names and operate as Purves said that airline officials do not expect any immediate changes in company employment or routes. Both Republix and Frontier serve Milwaukee's General Mitchell Internationall Airport.
Airline consultant Mike Boyd addef that Frontier is likely to increase routes unde r the oversightof Republic, whicu now owns Chautauqua Airlines, Republic Airlines and Shuttle America. Republi c Airways Holdings also leases planes to major fliers like United and Deltaa andis “very good at what they Boyd said. “Airlines are not at the top of the food chainnfor investment. But for someonw like Republic whounderstands airlines, this is a very good said Boyd, owner of Evergreen, Colo.-based Boyd Group International.
“Gettinh their hands on Frontier is good for Republic Airlines is expanding its air servicesz agreement withOak Creek-based Midwestf to include two new jets, the airline said last Republic began flying for Midwest under the Midwestg Connect brand in October 2008 and currently operates 12 76-sea t Embraer 170 jets for Midwest. Boyd said he did not expect anyonre to try to outbid Republiffor Frontier. If that were to any challenge likely would comefrom Dallas-bases Southwest Airlines, which is in direcrt competition with Frontier for Denver International Airporrt passengers, he predicted. Frontier is the second-largest carrieer at DIA, while Southwest is third.