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Ultra-Cheap Airline Investor purchases Frontier Airlines

Ultra-Cheap Airline Investor William Franke has now become the proud buyer of Frontier Airlines. Franke’s company Indigo Partners LLC recently acquired Frontier Airlines for $36 million plus assumed debt. William Franke, the new owner of Frontier Airlines, is a pioneer of the cheap tickets and high fees airline business in the United States. This business model has spread overseas and continues to grow in the U.S.

Republic Airways Holdings, the former owner of Frontier Airlines, had last year started making moves in that direction and had got ready to sell the airline.

Another U.S. low-cost carrier Spirit Airlines was also owned by William Franke. He was its chairman. The ultra cheap business model of Spirit Airlines had been a huge success. Spirit Airlines has been earning consistent profits by jamming more seats on its planes and charging extra for things that other airlines offer for free, such as using the overhead bin or printing a boarding pass at the airport.
Frontier Airlines also tried to follow the business model set by Spirit Airlines. Recently, on August 6, 2013 Frontier Airlines started charging as much as $100 each way for carry-on bags for some tickets purchased somewhere other than Frontier Airline’s website.
Franke has expressed his happiness and said that he would like to see those kind of changes brought about by Frontier Airlines and wants to see them there for quite some time. He said that with the acquisition of Frontier Airlines, his commitment to the ultra-cheap business model would remain unflinchingly.

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