inflightboi175
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The $31 million sale of Midwest Airlines Inc. to Republic Airways Holdings Inc. is expected to close Friday, Republic Chief Financial Officer Hal Cooper said Thursday.
The announcement came on the same day that Republic learned it was being challenged by Southwest Airlines Co. for control of Frontier Airlines, a Denver-based carrier operating under bankruptcy protection.
Indianapolis-based Republic reported Thursday that second-quarter net income fell 50% to $14.1 million, or 41 cents a share, from $28.4 million, or 81 cents, a year earlier. Revenue dropped 18.2%, to $320 million from $391.4 million.
Last year's results included a gain of $6 million, or 17 cents a share, on the settlement of interest rate swap transactions.
After earnings were reported, Republic shares fell 3 cents to $5.19 in Nasdaq Stock Market trading.
A court had already approved the sale of Frontier to Republic for $108.8 million, but that deal can be nixed if a better offer comes along.
Dallas-based Southwest said it submitted a nonbinding bid of $113.6 million. Southwest hopes that making the bid will allow it to talk with Frontier and get information to help shape its final proposal.
Southwest said it faces an Aug. 10 deadline for submitting a binding bid. If there is more than one qualified bidder, an auction will be held the following day.
Republic's plans to buy Midwest will not be affected by Southwest's bid for Frontier, said Republic spokesman Carlo Bertolini. He said Republic's agreement to buy Midwest doesn't depend on also acquiring Frontier.
On June 23, Republic announced an agreement to buy Oak Creek-based Midwest. Republic now flies 12 E170 aircraft for Midwest and also plans to operate nine 99-seat E190 aircraft and 12 regional jets with 37 to 50 seats at Midwest. Those additional jets are being added to the Midwest fleet over the next six months.
Republic Chief Executive Bryan Bedford, speaking from Milwaukee, told analysts there is still more work to be done on closing the purchase of Midwest. He said he hoped the closing would occur Friday.
Republic expects to have more information by mid- to late August on how it will integrate the Midwest operations.
Midwest's union pilots and flight attendants are negotiating with their union counterparts at Republic about merging the seniority lists of those flight crews. Bedford has said most Midwest employees, including those working at the Oak Creek headquarters, can expect to keep their jobs. But some job cuts are expected among administrative and back-office employees.
The announcement came on the same day that Republic learned it was being challenged by Southwest Airlines Co. for control of Frontier Airlines, a Denver-based carrier operating under bankruptcy protection.
Indianapolis-based Republic reported Thursday that second-quarter net income fell 50% to $14.1 million, or 41 cents a share, from $28.4 million, or 81 cents, a year earlier. Revenue dropped 18.2%, to $320 million from $391.4 million.
Last year's results included a gain of $6 million, or 17 cents a share, on the settlement of interest rate swap transactions.
After earnings were reported, Republic shares fell 3 cents to $5.19 in Nasdaq Stock Market trading.
A court had already approved the sale of Frontier to Republic for $108.8 million, but that deal can be nixed if a better offer comes along.
Dallas-based Southwest said it submitted a nonbinding bid of $113.6 million. Southwest hopes that making the bid will allow it to talk with Frontier and get information to help shape its final proposal.
Southwest said it faces an Aug. 10 deadline for submitting a binding bid. If there is more than one qualified bidder, an auction will be held the following day.
Republic's plans to buy Midwest will not be affected by Southwest's bid for Frontier, said Republic spokesman Carlo Bertolini. He said Republic's agreement to buy Midwest doesn't depend on also acquiring Frontier.
On June 23, Republic announced an agreement to buy Oak Creek-based Midwest. Republic now flies 12 E170 aircraft for Midwest and also plans to operate nine 99-seat E190 aircraft and 12 regional jets with 37 to 50 seats at Midwest. Those additional jets are being added to the Midwest fleet over the next six months.
Republic Chief Executive Bryan Bedford, speaking from Milwaukee, told analysts there is still more work to be done on closing the purchase of Midwest. He said he hoped the closing would occur Friday.
Republic expects to have more information by mid- to late August on how it will integrate the Midwest operations.
Midwest's union pilots and flight attendants are negotiating with their union counterparts at Republic about merging the seniority lists of those flight crews. Bedford has said most Midwest employees, including those working at the Oak Creek headquarters, can expect to keep their jobs. But some job cuts are expected among administrative and back-office employees.
