Indigo going ahead with Frontier Airlines purchase

DENVER — Indigo Partners LLC is going ahead with plans to buy Frontier Airlines, even though it failed to reach an agreement with the flight attendants union.

The Phoenix firm agreed in September to purchase Frontier from Republic Airways Holdings on the condition it could reach agreements with pilots and flight attendants.

Indigo has a tentative labor deal with pilots. On Wednesday, it said agreement had not been reached with the Association of Flight Attendants, but it will waive that condition.


The deal, which is now based on equity and business conditions, is expected to close this month, pending regulatory approval. Indigo said the sale price was not available, but earlier reports said it was $36 million, plus assumed debt.

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‘‘We are pleased about the progress we have made to resolve major issues and move this acquisition toward closing. We look forward to completing the action and continuing to extend Frontier’s reach and service as a leading nationwide, ultralow-cost air carrier,’’ said William Franke, managing partner at Indigo.

Republic Airways chairman Bryan Bedford said in the company’s earnings statement on Wednesday that the sale would allow its managers to focus on the core business, including low-cost solutions to airline partner brands including American Eagle, Delta Connection, United Express, and US Airways Express.

Frontier Airlines flight attendants, represented by the Association of Flight Attendants-CWA, said Thursday that they want a fair value for the equity and profit-sharing provisions of their contract, regardless of who owns the airline. They said they will work with Indigo Partners to make the airline strong and profitable.

Associated Press