18-Sep-2013 4:22 PM
Republic Airways Holdings outlines impacts of potential sale of Frontier Airlines
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]