Republic Airways, on July 31, completed its acquisition of Midwest Airlines, then won a bid last month for Frontier Airlines after Southwest Airlines withdrew when talks between the airlines’ pilots for a new labor deal stalled. Republic paid $6 million in cash and has issued a $25 million five-year note convertible to Republic stock at $10 a share for Midwest. It bid $108.75 million for Frontier. Now flying 12 Embraer E170s as Midwest Connect, Republic plans to replace Midwest’s remaining Boeing 717s with Embraer E190s. Republic plans to leave Frontier, a low-fare airline operating under Chapter 11 bankruptcy out of Denver, largely intact.
Republic Seals Midwest, Frontier Deals
- August 28, 2009, 7:51 AM