Indigo Partners issued (01-Nov-2013) a statement regarding its pending acquisition of Frontier Airlines from Republic Airways Holdings. The company stated: "Good progress has been made on all fronts as we work to satisfy conditions to close Indigo Partners’ previously announced acquisition of Frontier Airlines from Republic Airways Holdings. We are pleased to note in this regard that a tentative agreement has been reached with FAPAInvest on commercial matters. While progress has been made, no agreement has been reached with Barclaycard about an extension of its credit card and associated line of credit. We continue to work with the Association of Flight Attendants and we believe all sides recognise the importance of an agreement to both the AFA membership and to Frontier. We remain hopeful that remaining conditions to closing can be achieved in the next few days." [more - original PR]
Indigo Partners: Good progress 'on all fronts' in Frontier Airlines acquisition
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US airline investment firm Indigo Partners is assessing new low cost airline investment opportunities in Asia with a focus on the ultra-LCC or ULCC model. Indigo has not had an investment in Asia since selling its stake in Singapore-based Tigerair five years ago, but currently has large stakes in LCCs based in Europe and North America.
Indigo believes there could be room for a ULCC in the Southeast Asian market despite already intense competition and a huge LCC order book, because the LCCs now operating in this region are not true to the LCC model. Several Southeast Asian LCCs, including Tigerair, are owned by full service airline groups, leading to a dilution of the typical LCC model.
India is also a market of interest for Indigo. However, the firm is not interested in North Asia at this point, despite that region's much lower LCC penetration rate. Australia is also not of interest as it is already mature.
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