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Republic Airways Holdings outlines impacts of potential sale of Frontier Airlines

18-Sep-2013 4:22 PM

Republic Airways Holdings projected (17-Sep-2013) the following impacts of the proposed sale of Frontier Airlines to an unnamed buyer:

  • Alternate use or sale of Embraer E190 aircraft;
  • The loss of synergies after the transition of services;
  • Agreement for A320-200neo aircraft and accompanying CFM International engines expected to be transferred to Frontier. According to the CAPA Fleet Database, the company currently has 60 A320-200neo aircraft on order, the first of which is scheduled for delivery in Jul-2018;
  • Cessation of Republic Airways Holdings guarantees of Frontier obligations;
  • Indemnities in the stock purchase agreement "could result in some ongoing exposure to Republic." [more - original PR]