Frontier Airlines that has been serving the passengers across the
United States may be sold very soon. The airline is holding talks with a
Phoenix based private equity firm and the negotiations might turn
fruitful in the near future. Apparently, the firm intends to turn the
Denver based carrier into an ultra-low-fare airline and follow the
business philosophies of rivals Spirit Airlines and Allegiant Air.
Trenton Mercer and New Castle near Wilmington are two airports
dedicatedly served by Frontier. The airline currently operates 35
outbound flights to ten cities per week from Trenton and has 14 flights
departing for five cities every week from Wilmington.
Most of the airline’s flights are 90 to 95 percent occupied at the time
of departure. Experts suggest that the airline has done a great job in
past and hence any buyer would be keen on taking over and develop
relationships with the two airports.
Republic Airways Holdings, which currently owns Frontier disclosed a few
days ago that it had signed a nonbinding agreement with an unnamed
buyer. The deal is under process and is expected to close towards the
end of September 2013.
Indigo Partners L.L.C., a Phoenix based firms is suspected to be the
potential buyer. This firm has keen interests in investing in low cost
airlines around the world. It holds stakes in Spirit, Singapore based
Tiger Airways and Hungary’s Wizz Air.
Frontier has been running business on an ideology much similar to that
of Spirit and Allegiant. It uses a combination of smaller secondary
airports that charge lesser landing fees but hold proximity to large
metropolitan area and some major airports.