Republic Airways Holdings (Indianapolis) has agreed to be the equity sponsor of Frontier Airlines’ (2nd) (Denver) plan of reorganization. The plan, which is subject to bankruptcy court approval and various conditions, would allow Republic to purchase 100 percent of the equity in the reorganized company for $108.75 million. If approved and completed, the plan will result in Frontier’s successful exit from Chapter 11, at which point it would become a wholly owned subsidiary of Republic Airways, along with Chautauqua Airlines, Republic Airlines and Shuttle America. The acquisition also includes Frontier’s Lynx Aviation subsidiary.
This announcement raises several possible scenarios if this acquisition is approved by the bankruptcy court.
1. Lynx Aviation is likely to be merged into Colgan Air (2nd).
2. Republic Airlines’ (2nd) Embraer ERJ 170s are likely to return to the Denver hub (and possibly other regional aircraft operated by Chautauqua Airlines).
3. A possible merger between Frontier Airlines and Midwest Airlines (which Republic has an interest).
One thing is guaranteed, there will be changes in Denver.