Republic Makes Plans to Separate Frontier Airlines

Republic Airways Holdings Inc. on Tuesday announced plans to dispose of its loss-making Frontier Airlines business, sparking a rally in the stock of what some analysts had once viewed as the industry's next candidate for bankruptcy protection. The airline operator beat off competition from Southwest Airlines Co. to buy Denver-based Frontier out of bankruptcy protection in 2009, one of two acquisitions designed to diversify from the low-margin business of flying commuter planes on behalf of network airlines. The move turned sour under the weight of soaring fuel costs and intense competition in Denver, notably from Southwest, forcing Republic to restructure Frontier and look at cutting its stake to a minority by 2014 after exchanging equity for employee concessions. Read More