Republic in 2-airline shopping spree

June 24, 2009

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.

Source: upi

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