» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 128 | NO. 219 | Friday, November 08, 2013

Indigo Going Ahead With Frontier Airlines Purchase

AP

Print | Front Page | Email this story | Comments ()

DENVER (AP) Indigo Partners LLC is going ahead with plans to buy Frontier Airlines, even though it failed to reach an agreement with the carrier's flight attendants' union.

The Phoenix-based firm agreed at the end of September to purchase Frontier from parent company Republic Airways Holdings on the condition it could successfully negotiate agreements with the pilots and flight attendants.

Indigo Partners said Friday it reached a tentative labor deal with pilots. In a statement late Wednesday, the firm said that agreement has not been reached with the Association of Flight Attendants, but it will waive that condition.

The deal, which is now based on equity and business conditions, is expected to close later this month pending regulatory approval. Indigo said Thursday the sale price wasn't available but earlier reports said the firm was buying Frontier for $36 million plus assumed debt.

"We are pleased about the progress we have made to resolve major issues and move this acquisition toward closing. We look forward to completing the action and continuing to extend Frontier's reach and service as a leading nationwide, ultra low-cost air carrier," said William Franke, managing partner at Indigo Partners.

Republic Airways chairman Bryan Bedford said in the company's earnings statement on Wednesday that the sale of Frontier will allow its managers to focus on its core business, including low-cost solutions to airline partner brands including American Eagle, Delta Connection, United Express and US Airways Express.

"To all of you at Frontier, I wish you the very best," Bedford said.

Frontier Airlines flight attendants, represented by the Association of Flight Attendants-CWA, said Thursday they want a fair value for the equity and profit-sharing provisions of their contract, regardless of who owns the airline. They said they will work with Indigo Partners to make the airline strong and profitable.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 72 368 16,413
MORTGAGES 66 422 21,432
FORECLOSURE NOTICES 15 76 4,266
BUILDING PERMITS 176 877 39,378
BANKRUPTCIES 60 294 15,542
BUSINESS LICENSES 20 98 5,491
UTILITY CONNECTIONS 69 423 23,573
MARRIAGE LICENSES 17 95 5,035

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.