Mergers & Acquisitions and Republic Airways and Employment and Transportation, Distribution & Logistics

Republic's purchase of Frontier could mean more local jobs

September 4, 2009

Republic Airways Holdings Inc. is considering shifting as many as 250 jobs to its home base of Indianapolis as a result of its pending acquisition of Frontier Airlines Holdings Inc. in Denver, according to a news report.

Milwaukee, the headquarters of Midwest Airlines, which Republic recently acquired, also is contending for the jobs.

The Journal Sentinel newspaper of Milwaukee, quoting Republic CEO Bryan Bedford, reported that the jobs that could be moved include 150 heavy maintenance positions at Denver International Airport and about 100 additional Denver-based jobs.

Altogether, Republic may move as many as 400 Frontier jobs to Indianapolis or Milwaukee, including another 150 employees from a customer service center in Las Cruces, N.M., the Journal Sentinel reported. Bedford told the newspaper that Republic could make a decision on the moves within 30 days.

Republic won a bankruptcy court auction to buy Denver-based Frontier for about $108 million last month. Frontier said it expects the deal to close by Oct. 1, making it a unit of Republic.

Republic said it expects its Sept. 10 confirmation hearing in bankruptcy court in the Southern District of New York to be “largely uncontested.” Frontier filed for Chapter 11 protection in April 2008.
 

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