Republic Airways Acquires Frontier and Midwest

Republic Airways, the holding company that owns Republic Airlines, Chautauqua Airlines, and Shuttle America announced that it will sponsor Frontier Airlines in its reorganization plan, after which it would become a wholly owned subsidiary of the group.

“Currently in its 15th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing approximately 5,000 aviation professionals. Frontier Airlines’ mainline operation has 51 aircraft with one of the youngest Airbus fleets in North America. Frontier Airlines’ mainline operations offer 24 channels of DIRECTV® service in every seatback along with a comfortable all-coach configuration. In conjunction with a fleet of ten Bombardier Q400 aircraft operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.), Frontier offers routes to more than 50 destinations in the U.S., Mexico and Costa Rica.”

“Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 101 cities in 37 states, Canada and Mexico through airline services agreements with seven U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect, Mokulele Airlines and US Airways Express. The airlines currently employ approximately 4,500 aviation professionals and operate 212 regional jets.”

The airlines who subcontract to Republic might not be thrilled, United Airlines in particular, as they as big in Denver. Republic even operates United Express flights in markets like Denver – Atlanta and Denver – Minneapolis/St Paul, routes on which Frontier will compete head-to-head.

Midwest Airlines was on its way out. It had already subcontracted most of its flying to Republic anyway. It was only a matter of time before it ceased to be. Republic will be good for Midwest. They plan to restore some of the destinations cut last year, when the carrier reduced service 40% in the face of record fuel. The new Midwest fleet will consist of 94-seat Embraer 190 regional jets, 10 configured with Midwest’s Signature Service . Most importantly…fresh cookies will still be served.

It is ironic. Many times, we have gone against consolidation. But this one could work out. Republic will likely do well with Midwest. The 94-seat E190 is perfect for the medium-sized Milwaukee market, more so than Southwest and AirTran, despite their ramp-up there. We’re not so sure about Frontier and Denver though. There is certainly potential there. But taking it from both ends…operating regional flights for United and for subsidiary…

Republic may end up reorganizing Frontier, selling off some of its assets to United, and shifting its focus. We could see the remains repurposed as a leisure and feeder carrier. We’ll see what happens.

At least we have our cookies.

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