frontierairlines.com/frontie … eleases.do . Is frontier going to be the next airline to go this year?
If I were them, I wouldn’t have thrown that right smack on the home page.
The root cause of this filing is reported to be a planned increase in holdback from their principal credit card processor. That betrays what a cash-dependent, hand-to-mouth operation a modern airline is.
I’m guessing Continental will NOT be buying out this Frontier…
I think Frontier will be able to restructure pretty effectively. Also, they don’t have to make interest payments during bankruptcy so that will give them a bit of an advantage.
Not really, the creditors usually get their pound of flesh for non-performing loans. Also, it’s not like the interest stops accruing, it just isn’t being paid for a time. They still owe it.
Frontier is really in for a tough road, and it will be harder then you think for them to make it out.
Didn’t SWA start serving Denver about two years ago? 
Frontier Airlines to be bought by Republic Airways under bankruptcy plan
Republic Airways Holdings Inc. plans to buy Frontier Airlines, bringing the Denver company out of bankruptcy without imposing any major changes, the two companies announced Monday.
Republic (NASDAQ: RJET), based in Indianapolis, has been one of three companies financing Frontier’s emergence from bankruptcy. A subsidiary, Republic Airlines, also is one of Frontier’s major unsecured creditors, having filed a $260 million damage claim for Frontier’s breaking an agreement with Republic to operate regional jet service after Frontier filed for bankruptcy protection in April 2008.
Under terms of the deal, Frontier will become a wholly owned subsidiary of Republic Airways Holdings after the company serves as the equity sponsor for Frontier’s reorganization plan and buys 100 percent of the equity in the reorganized company. The cost to Republic will be $108.75 million.
Frontier filed its proposed reorganization plan with the U.S. Bankruptcy Court of the Southern District of New York Monday. Frontier will seek court approval of the investment agreement at a July 13 hearing and then conduct a roughly month-long auction process where other companies will have the chance to outbid Republic, Frontier spokeswoman Lindsey Purves said.
Republic emphasized in a news release that Frontier and its short-haul service, Lynx Aviation, would maintain their current names and operate as usual. Purves said that airline officials do not expect any immediate changes in company structure, employment or routes.
“This is great news. I think it’s a testament to the hard work that everybody has done over the past 14, 15 months since we’ve filed (bankruptcy),” Purves said. “We’re created a very efficient airline, and that’s reflected in the fact that Republic has come forward.”
Airline consultant Mike Boyd added that Frontier is likely to increase routes under the oversight of Republic, which now owns Chautauqua Airlines, Republic Airlines and Shuttle America.
Republic Airways Holdings also leases planes to major fliers like United and Delta and is “very good at what they do,” Boyd said.
“Airlines are not at the top of the food chain for investment. But for someone like Republic who understands airlines, this is a very good investment,” said Boyd, owner of Evergreen-based Boyd Group International. “Getting their hands on Frontier is good for everybody.”
Frontier filed for bankruptcy protection after its credit card processor began holding back 100 percent, rather than 45 percent, of Frontier’s credit card transactions. After the filing, the airline began a 14-month process of trimming fat from its budget and becoming more efficient.
Because of those efforts, Frontier has reported two consecutive quarterly profits and is doing better than most airlines today.
Republic Airlines had signed a 13-year agreement with Frontier in January 2007 to operate 17 planes for Frontier’s regional jet service, but that deal was the first contract Frontier sought to break after its bankruptcy filing. Even at the time, Republic Airways Holdings CEO Bryan Bedford complimented Frontier, saying the company had enjoyed its partnership with the airline and had a lot of respect for its people.
In August, Republic Airways Holdings, Credit Suisse Securities of New York and AQR Capital of Connecticut offered Frontier an immediate $30 million in working capital with the possibility of another $45 million in the future.
In March, Frontier received a commitment for $40 million in post-petition debtor-in-possession (DIP) financing from Republic Airways Holdings to support its working additional capital needs. As part of that agreement, Frontier agreed to allow Republic’s damage claim in the amount of $150 million.
Monday’s proposed reorganization plan calls for Frontier’s general unsecured creditors to receive $28.75 million in cash, with an additional $40 million of the sale proceeds applied as repayment of the outstanding DIP loan. If approved, the company’s current equity would be extinguished and holders of that equity would not receive any recovery, according to a joint news release.
“This agreement represents a major milestone in our ongoing efforts to position Frontier to emerge from bankruptcy as a competitive, sustainable airline,” Frontier President and CEO Sean Menke said in the release.
Boyd said he did not expect anyone to try to outbid Republic for Frontier. If that were to happen, any challenge likely would come from Dallas-based Southwest Airlines, which is in direct competition with Frontier for Denver International Airport passengers, he predicted.
Frontier is the second-largest carrier at DIA, while Southwest is third. United Airlines is the largest carrier at the airport.
Source: Denver Business Journal
Very interesting!! routes stay the same, employees stay the same… just a simple buyout. No buyout of the Lynx Aviation contact to replace it again with RPA, CHQ, or TCF. What I find rather interesting is the buying price. Is it me, or that $108 million is rather cheap for an airline that while in Ch. 11 is making more profit than some airlines that aren’t in Ch. 11 and are struggling?
BL.
Bring back the duck!!! Republic is reborn!!!
Republic just placed a final bid on Midwest today… That’s 2 airlines in less than 48 hours. Impressive! lol
Let the speculation begin… :mrgreen:
Please! It’s a goose, Herman the Blue Goose to be exact, originally the logo of North Central!
And the Republic of today is not the same Republic that was formed by the merger of North Central and Southern.
dami…come on man I know that, my Dad worked for them…I was just throwing it out there 
See above post…in our house it was affectionately called “The duck”
I did not know that.
And you’re right - it is a duck, not a goose:
hermantheduck.org/pages/intr … ntro2.html
Karl Brocken, an industrial design consultant from Milwaukee, Wisconsin, was given the task of designing a logo for the new airline. After rendering many different designs, the final brand image featured a duck in front of a circle. The mallard symbolized the frequent and quick flights Wisconsin Central’s aircraft would perform silhouetted against the sun by day and the moon at night. Pilot Bill Engelking soon began drawing cartoons featuring this bird for use on the company newsletters - with the name … Herman.
Wow, the regionals really ARE taking over! Anyone here ever work for Republic? Wondering if they’re like all the other regionals.
Hey congrats on post B757 