Republic et Frontier

Frontier, actuellement sous Chapitre 11 de la loi US sur les faillites pourrait être absorbé par Republic Holdings.

La Banckrupcy Court pourrait accorder à Republic 100% de Frontier Airlines

Sur Flight :

Frontier Airlines could soon become a wholly-owned subsidiary of US regional operator Republic Airways Holdings if the bankruptcy court overseeing Frontier's Chapter 11
restructuring approves the reorganization plan filed with the bankruptcy court today.

Frontier entered bankruptcy protection in April 2008, and in March of this year Republic
agreed to supply $40 million in debtor-in-possession (DIP) financing to its former partner after supplying part of $30 million in DIP financing to Frontier in August of 2008.

Details of the plan submitted to the bankruptcy court today would allow Republic to purchase 100% of equity in a reorganised Frontier for $108.75 million.

Frontier has also filed a motion for court approval of the investment agreement with Republic, which is subject to higher or better proposals under a court-supervised auction. An additional $40 million of the sale proceeds would be applied as repayment of
the outstanding DIP loan.

Other elements of Frontier's proposed plan of reorganization include unsecured creditors
receiving $28.75 million in cash.

In a statement Frontier explains that both the carrier and its Lynx subsidiary that operates Bombardier Q400 turboprops "would maintain their current names and continue to operate as usual".

Republic earlier this year also took a 50% stake in its Hawaiian partner Mokulele Airlines. Republic operates Embraer E-170 aircraft for Mokulele in Hawaiian interisland markets.

"Adding Frontier to the Republic portfolio of operating companies is an opportunity for both companies to build on recent successes and strengthen the Republic organization
for the benefit of all stakeholders," says Republic chief executive officer Bryan Bedford. Republic's subsidiaries are Republic Airlines, Chautauqua Airlines and Shuttle America.

Frontier plans to seek court approval of the investment agreement with Republic during a hearing scheduled for 13 July.
http://www.flightglobal.com/articles/2009/06/22/328672/republic-aims-to-add-frontier-to-its-portfolio.html

Et Republic prend aussi le contrôle de Midwest !

Midwest Airlines Inc. is being acquired by Republic Airways Holdings Inc., a move that ends 25 years of local control for the largest airline to fly out of Milwaukee's Mitchell International Airport, it was announced Tuesday.

The Midwest name will remain alive under Republic's ownership, and the vast majority of Midwest's 1,640 employees will keep their jobs, said Bryan Bedford, Republic CEO and future CEO of Midwest. Timothy Hoeksema, Midwest's long-time CEO, will retire when the acquisition is completed within a month or so.

But there will be job cuts, coming mainly from the ranks of administrative and back-office employees who are doing similar work performed by their Republic counterparts, Bedford said. Midwest's 112 union pilots and 120 union flight attendants will likely face pay cuts as
they are integrated into Republic's labor contract, which pays lower salaries to its union flight crews than what Midwest flight crews earn.

Also, Republic plans to restore some of the destinations Midwest cut last year when the Oak Creek-carrier reduced service by 40% after jet fuel prices spiked. But Republic will be flying Midwest passengers on its Embraer jets. That aircraft has fewer wide Midwest "signature" seats than Midwest's nine remaining Boeing 717 jets, which will be phased out.

http://www.jsonline.com/business/48905032.html

Republic Holdings affiche l'ambition de devenir une LCC d'envergure à terme.

Flotte qui serait sans doute rationaliser, même si souvent complémentaire actuellement
http://en.wikipedia.org/wiki/Midwest_Airlines
http://en.wikipedia.org/wiki/Frontier_Airlines
http://en.wikipedia.org/wiki/Republic_Airlines

Un long article sur Indy News, sur le sérieux et les ambitions de Republic Airways Holdings

http://wap.indystar.com/detail.jsp?key=483086&rc=th&full=1

Avec ou sans Frontier, il semble que la refonte des networks LCC aus USA commence...

Et le CEO de Midwest s'en va.