Frontier Airlines ends Republic deal, stopping some service
Wednesday April 23, 8:40 am ET Frontier Airlines and Republic Airways quit agreement, ending service to 5 cities
NEW YORK (AP) -- Frontier Airlines Holdings Inc. and regional carrier Republic Airways Holdings said Wednesday they agreed to quit their code-sharing agreement, ending Frontier service to five cities.
The deal, which comes less than two weeks after Frontier sought bankruptcy protection, will pull 12 of Republic's Embraer E170 regional jets from Denver-based Frontier's fleet.
Frontier said it will reallocate remaining planes into markets "with more potential for long term profitability." As a result, the company plans to end service to Sioux City, Iowa; Jacksonville, Fla.; Little Rock, Ark.; Memphis, Tenn.; and Tulsa, Okla. by the start of June. Service planned for Missoula, Mont., will not begin.
Republic operated the 12 planes under Frontier's brand. The Indianapolis-based regional carrier said their service agreement, under which Frontier paid certain costs such as fuel, generated about $6 million in monthly revenue.
Four of the planes will be pulled from service May 1, followed by six more June 2 -- a day after Frontier plans to quit flying to the last of the affected cities. The last two planes will exit Frontier's fleet June 23.
Republic said it plans to file a claim for $260 million in damages stemming from the canceled agreement. The final amount of the claim will be determined by the bankruptcy court.
"It's unfortunate that despite their many efforts to reorganize their business outside of Chapter 11, factors beyond their control conspired to force a deeper reorganization," Republic Chief Executive Bryan Bedford said in a statement. "We wish them success in their continuing efforts to combat persistently high oil prices."
Frontier filed for bankruptcy April 11 after its leading credit-card processor said it planned to withhold a greater share of proceeds from ticket sales. The airline -- the fourth to turn to bankruptcy in recent weeks -- vowed to continue operating as it reorganizes.
The airline said it will offer refunds or other arrangements to affected customers.
Wednesday April 23, 8:40 am ET Frontier Airlines and Republic Airways quit agreement, ending service to 5 cities
NEW YORK (AP) -- Frontier Airlines Holdings Inc. and regional carrier Republic Airways Holdings said Wednesday they agreed to quit their code-sharing agreement, ending Frontier service to five cities.
The deal, which comes less than two weeks after Frontier sought bankruptcy protection, will pull 12 of Republic's Embraer E170 regional jets from Denver-based Frontier's fleet.
Frontier said it will reallocate remaining planes into markets "with more potential for long term profitability." As a result, the company plans to end service to Sioux City, Iowa; Jacksonville, Fla.; Little Rock, Ark.; Memphis, Tenn.; and Tulsa, Okla. by the start of June. Service planned for Missoula, Mont., will not begin.
Republic operated the 12 planes under Frontier's brand. The Indianapolis-based regional carrier said their service agreement, under which Frontier paid certain costs such as fuel, generated about $6 million in monthly revenue.
Four of the planes will be pulled from service May 1, followed by six more June 2 -- a day after Frontier plans to quit flying to the last of the affected cities. The last two planes will exit Frontier's fleet June 23.
Republic said it plans to file a claim for $260 million in damages stemming from the canceled agreement. The final amount of the claim will be determined by the bankruptcy court.
"It's unfortunate that despite their many efforts to reorganize their business outside of Chapter 11, factors beyond their control conspired to force a deeper reorganization," Republic Chief Executive Bryan Bedford said in a statement. "We wish them success in their continuing efforts to combat persistently high oil prices."
Frontier filed for bankruptcy April 11 after its leading credit-card processor said it planned to withhold a greater share of proceeds from ticket sales. The airline -- the fourth to turn to bankruptcy in recent weeks -- vowed to continue operating as it reorganizes.
The airline said it will offer refunds or other arrangements to affected customers.
