Frontier Airlines (2nd) (Denver) as of yesterday (December 3) is now owned by Indigo Partners through an affiliate. Indigo Partners issued this statement:
Indigo Partners has announced that, through an affiliate, it has completed the acquisition of Frontier Airlines from Republic Airways Holdings on December 3, 2013. Final terms of the transaction, which was first announced on October 1, 2013, are not being disclosed.
Indigo Partners and its principals, led by managing partner William A. Franke, have considerable experience in successful, airline-related investments.
“Today is an exciting day for Frontier Airlines and Indigo Partners, as we can now embark on a new chapter in Frontier’s history of providing safe, reliable and fairly priced air service,” said Franke. “As air travel costs have moved higher, demand has grown for more affordable options and more choices. One key element to Frontier’s future success will be operating as an ultra low cost carrier that offers low fares. This model, coupled with the Frontier touch, will ensure opportunities for the Frontier team, and provide safe and reliable ULCC air service to our communities and beyond as we grow Frontier under this vision.”
Frontier will remain headquartered in Denver, Colorado.
David Siegel, CEO and President of Frontier Airlines, resigned from Republic’s Board of Directors.
Indigo Partners is a private equity firm established by W. A. Franke in 2003 to pursue acquisitions and strategic investments in the air transportation and related industries. The firm was a significant investor in Tiger Airways based in Singapore and Spirit Airlines based in Ft. Lauderdale, Florida, and maintains lead investments in Wizz Air Holdings, Plc, a ULCC with multiple bases in Central and Eastern Europe and Volaris Airlines, a ULCC based in Mexico City. Indigo Partners is headquartered in Phoenix, Arizona.
Republic Airways Holdings, based in Indianapolis, Indiana, is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines operate a combined fleet of more than 250 aircraft and offer scheduled passenger service on over 1,300 flights daily to more than 110 cities in the U.S., Canada and the Bahamas through fixed-fee flights operated under airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express. The airlines currently employ approximately 6,000 aviation professionals.
Copyright Photo: Mark Durbin/AirlinersGallery.com. Indigo Partners is likely to keep the popular animals on the tails which plays well on their TV advertisements in the main Frontier markets, giving names to the talking tails. However the new very bold FLYFRONTIER.COM titles as displayed on Airbus A320-214 N220FR (msn 5661) with Sharklets may not survive. It will be interesting to watch for any changes to the current Frontier strategy by these low-fare airline investment fund people.