Frontier Airlines to be bought by Republic Airways under bankruptcy plan

inflightboi175

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Frontier Airlines would become a subsidiary of Republic Airways under a bankruptcy reorganization plan announced Monday afternoon.
Denver-based Frontier, which is operating under Chapter 11 protection, said it has entered into an investment agreement with Indianapolis-based Republic Airways Holdings Inc. (NASDAQ: RJET), one of its creditors, under which Republic would serve as equity sponsor for Frontier’s plan of reorganization and purchase 100 percent of Frontier’s equity for $108.75 million.
The agreement is subject to bankruptcy court approval and various conditions.
Frontier said that under the plan, Frontier Airlines Holdings Inc. would become a wholly owned subsidiary of Republic, an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America.
It said that Frontier Airlines and its short-haul unit, Lynx Aviation, would keep their current names and operate as they do now.
Frontier, which had been one of the top 10 carriers at Sacramento International Airport, filed for Chapter 11 bankruptcy protection in April 2008.
Monday, Frontier filed its proposed plan of reorganization and related documents with the U.S. Bankruptcy Court in New York.
It also said it filed a motion for the court to approve the investment agreement with Republic, “subject to higher and better proposals under a court-supervised auction.”
A hearing on the proposed transaction is set for July 13.
Frontier’s reorganization plan calls for general unsecured creditors to get $28.75 million.
It said an additional $40 million of the sale proceeds would repay outstanding “debtor-in-possession” financing from Republic Airways Holdings.
If approved by the bankruptcy court, Frontier’s current equity “would be extinguished and holders of that equity would not receive any recovery,” the airline’s statement said.
“This agreement represents a major milestone in our ongoing efforts to position Frontier to emerge from bankruptcy as a competitive, sustainable airline,” Sean Menke, Frontier president/CEO, said in a statement.
He said Frontier management is “pleased that this agreement allows our customers and communities to continue to receive the outstanding service for which Frontier is known, while preserving the jobs of most Frontier employees.”
Staff cuts, if any, were not announced.
“We believe this agreement represents a new beginning for Frontier, positioning it to build on its recent successes and strengthen the Frontier brand for the benefit of employees and the customers and communities it serves,” Bryan Bedford, chairman, president and CEO of Republic Airways, said in the statement.


http://www.bizjournals.com/sacramento/stories/2009/06/22/daily13.html
 

Sherpa

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Mesa sucks!
 

Tarzan

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Anyone think they are about to make a Indy choice? Now that they own an airline that competes head to head with United and Delta, I have to wonder if they can be axed to leave the sand box.

Oh yeah, you Repube-lic guys that voted for 99 seat wages.....
 

amcnd

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How does Midwest fit into all of this??!!

And how would this effect Republic/CHQ/Shutle pilots?
 

Superpilot92

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Anyone think they are about to make a Indy choice? Now that they own an airline that competes head to head with United and Delta, I have to wonder if they can be axed to leave the sand box..
DAL scope on this,

D. Permitted Arrangement with Respect to Category A and C Operations

1. Section 1 C. will not apply to category A or C operations on any permitted aircraft type.

Exception: If a permitted aircraft type meets the certificated passenger seat requirement of Section 1 B. 40. b. when first placed into service by a Delta Connection Carrier but is subsequently certificated for operation in the United States with a maximum passenger seating capacity in excess of 50 passenger seats, this permitted aircraft type may continue to be operated by Delta Connection Carriers as long as all Delta Connection Carriers operate such permitted aircraft type with no more than 50 passenger seats and with a maximum certificated gross takeoff weight in the United States of 65,000 or fewer pounds at all times.

2. If a domestic air carrier operates both permitted aircraft types and aircraft other than permitted aircraft types, the exemption for that domestic air carrier provided by

Section 1 D. 1.
will not apply unless:

a. the flying on aircraft other than permitted aircraft types is not performed for the Company within the meaning of Section 1 C., and

b. there is no reduction in the level of the Company’s then existing system scheduled aircraft block hours of flying as the result of the performance of such flying on other than a permitted aircraft type, and

c. the aircraft other than a permitted aircraft type, is either a jet aircraft certificated for operation in the United States for 106 or fewer passenger seats and configured with 97 or fewer passenger seats (provided that any jet aircraft configured with between 71 and 97 passenger seats is not flown for the Company or any affiliate and is not flown on a city pair that is served by the Company or an affiliate) or a propeller driven aircraft configured with 72 or fewer passenger seats, and is operated on its own behalf or pursuant to agreement with an air carrier(s) other than the Company or an affiliate.

Exception: If a carrier that performs category A or category C operations acquires an aircraft that would cause the Company to no longer be in compliance with the provisions of Section 1 D. 2. c., the Company will terminate such operations on the date that is the later of the date such aircraft is placed in revenue service, or nine months from the date that the Company first became aware of the potential acquisition
 

OneBadLT123

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WTF this was unexpected...
 

lookin4better

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Many boys sleepless tonight on layovers at RAH with excitement to take jobs from pilots at Frontier.
 

Crash Pad

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Dude did you hear we are getting the airbus. I should be able to hold FO on that thing. This is gonna be awesome.

Meanwhile at SKYW: "Damn lost another airline to dietech"
 

Whataburger

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"It also said it filed a motion for the court to approve the investment agreement with Republic, “subject to higher and better proposals under a court-supervised auction.”

This probably isn't over. VA, SWA? Branson has mad money and SWA has been positioning for something.
 

CFI

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"It also said it filed a motion for the court to approve the investment agreement with Republic, “subject to higher and better proposals under a court-supervised auction.”

This probably isn't over. VA, SWA? Branson has mad money and SWA has been positioning for something.
Well the auction date is July 13, so we'll all know more then.
 

embraerjetpilot

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What good would Southwest get out of this? Different plane type? Denver ops? They dont the first and dont need the second.
 

ALPO

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DAL scope on this,

D. Permitted Arrangement with Respect to Category A and C Operations

1. Section 1 C. will not apply to category A or C operations on any permitted aircraft type.

Exception: If a permitted aircraft type meets the certificated passenger seat requirement of Section 1 B. 40. b. when first placed into service by a Delta Connection Carrier but is subsequently certificated for operation in the United States with a maximum passenger seating capacity in excess of 50 passenger seats, this permitted aircraft type may continue to be operated by Delta Connection Carriers as long as all Delta Connection Carriers operate such permitted aircraft type with no more than 50 passenger seats and with a maximum certificated gross takeoff weight in the United States of 65,000 or fewer pounds at all times.

2. If a domestic air carrier operates both permitted aircraft types and aircraft other than permitted aircraft types, the exemption for that domestic air carrier provided by

Section 1 D. 1.
will not apply unless:

a. the flying on aircraft other than permitted aircraft types is not performed for the Company within the meaning of Section 1 C., and

b. there is no reduction in the level of the Company’s then existing system scheduled aircraft block hours of flying as the result of the performance of such flying on other than a permitted aircraft type, and

c. the aircraft other than a permitted aircraft type, is either a jet aircraft certificated for operation in the United States for 106 or fewer passenger seats and configured with 97 or fewer passenger seats (provided that any jet aircraft configured with between 71 and 97 passenger seats is not flown for the Company or any affiliate and is not flown on a city pair that is served by the Company or an affiliate) or a propeller driven aircraft configured with 72 or fewer passenger seats, and is operated on its own behalf or pursuant to agreement with an air carrier(s) other than the Company or an affiliate.

Exception: If a carrier that performs category A or category C operations acquires an aircraft that would cause the Company to no longer be in compliance with the provisions of Section 1 D. 2. c., the Company will terminate such operations on the date that is the later of the date such aircraft is placed in revenue service, or nine months from the date that the Company first became aware of the potential acquisition
The key word there is "carrier" not holding company, This only applies to Shuttle America, the whole reason they different carriers is get around scope.
 

aewanabe

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Many boys sleepless tonight on layovers at RAH with excitement to take jobs from pilots at Frontier.
Did an RAH pilot deny you a jumpseat? Or did you just not pass the interview.
 

Salukipilot4590

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Did an RAH pilot deny you a jumpseat? Or did you just not pass the interview.
Why is it assumed that someone didn't pass an interview when they say something hurtful about another airline?

Not everyone desires to be in your position.
 

aewanabe

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Agreed. I'd love to be back flying a BE-58 around the Outer Banks again, but kinda like making more than 30k a year. I just enjoy ridiculing people who are zeroed in on hating a specific pilot group. Often it's with no reason, or a young fella who decided he would sound cool calling a bunch of people he doesn't know scabs or w h o r e s.

My right seat at B6 is pretty comfy. It will be much better if the "promised" pay raises actually come through; even then I have no mis-conception that I am compensated enough and continue to agitate for it. Peace.
 
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