Republic CEO Bryan Bedford was on Bloomberg TV/radio yesterday and gave an update on Frontier and the up-coming IPO/spin-off.

During the interview, Bedford stated:

1) A private equity firm is the most likely to invest or make an offer for Frontier. However, the number of private equity players interested in Frontier is "small."

2) There is basically no interest by other airlines.

3) Frontier is expected to post a Q2 loss. We'll have to wait and see if the loss is operational or caused by charges related to the restructuring. In any event, Frontier will likely lag most of it's peers in financial performance once results are released.

4) Frontier will adopt aspects of ULCCs Allegiant and Spirit.

I can't say I'm surprised there is so little interest in Frontier. Their business model and market positions in DEN, MCI, and MKE are likely not sustainable long-term. It will be interesting to see how things unfold during the year.

I'm not a betting man, but I am ready to lay good money that that TPG is on that list.

No one wanted Frontier (at a half way decent price) last time around - I can't think why that should have changed.

Nor can I think that BB would want that. The price he is likely to get for a sale of Frontier pales in comparison with the potential of a spin-off.

I thought he said a "Q1" loss, but I could be wrong. Q2 would surprise me at this stage of the game.

davy

http://media.bloomberg.com/bb/avfile...NDbfhKeSEo.mp3