Frontier Airlines Sold to Private Equity Firm

Indigo Partners LLC has just announced the acquisition of Frontier Airlines. The private equity firm, headed by former Spirit Airlines chairman William Franke, has purchased the airline from Republic Airways for $36 million in cash and $109 million in debt. Republic had previously acquired the airline in 2009, during a bankruptcy auction.

Indigo plans to turn Frontier into an ultra-low-cost carrier similar to Spirit Airlines, hinting at cutbacks and fee increases.

The sale is expected to close in December, pending approval from the Federal Communications Commission and the Association of Flight Attendants.

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