Airlines and Republic Airways and Transportation, Distribution & Logistics

Indigo 'hopeful' for Frontier sale despite snag

November 4, 2013

The sale of Frontier Airlines has hit a snag.

But buyer Indigo Partners LLC of Phoenix said it's "hopeful" of closing the $145 million deal.

“We remain hopeful that remaining conditions to closing can be achieved in the next few days,” the company said in a prepared statement Friday — a day after the deadline set in the original purchase agreement with Frontier parent Indianapolis-based Republic Airways Holdings Inc.

The private equity firm had set a Thursday deadline for agreements with Frontier's flight attendant union and a group tied to its former pilots union. Only the pilot group has made a deal.

Indigo said Friday that it's negotiating with flight attendants. It's also trying to agree with Barclays, which issues the credit card affiliated with Frontier, over extending the card and a credit line.

Phoenix-based Indigo has until Monday to tell Republic whether it wants to terminate the deal.

The companies announced the deal in early October.

Republic shares were up 18 cents Monday morning, to $11.89 each.

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