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Indigo Partners patient on Frontier’s IPO, but latest Airbus order shows bullishness on US ULCCs

Despite placing its initial public offering on hold earlier in 2017, the US ULCC Frontier Airlines’ growth is pushing forward full steam ahead.

The company has bold ambitions to triple its size over the next decade, fuelled by the declarations of its parent company Indigo Partners for the preliminary order of 430 Airbus narrowbodies. Frontier aims to operate 134 of those aircraft.

During the last year Indigo has seemed eager to spin off Frontier, but opted to suspend plans for an IPO as US majors continued to match ULCC pricing. However, Indigo’s commitment to allot 31% of its planned mega Airbus order to Frontier reflects the private equity firm’s bullishness on the prospects for the ULCC business model in the US.

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