June 24, 2009
Republic in 2-airline shopping spree
Republic Airways Holding said it would take over two struggling airlines, Frontier, based in Colorado, and Midwest, based in Wisconsin.
Having loaned the Colorado carrier $40 million in March, Republic already owns a portion of Frontier, the country's third largest low-cost carrier, which is in Chapter 11 court protection, the Indianapolis Star reported Wednesday.
The purchase price for the bankrupt airline, which earned $264 million in revenue in the first quarter, was $109 million.
Frontier President and Chief Operating Officer Sean Menke is expected to keep his position with the airline, Frontier spokeswoman Lindsey Purves said
Republic also jumped to Midwest's aid a year ago with a $25 million loan. It is now buying a 54 percent stake in the company owned by Texas firm TPG Capital for $6 million and a $25 million five-year convertible note, the newspaper said.