Shares of Republic Airways Holdings Inc. were down 10.7 percent this morning on news the locally based airline had severed ties with bankrupt Frontier Airlines. Shares were at $16.03 as of 11 a.m.
Republic this morning said it would begin breaking away from Frontier due to the Denver-based airline's recent decision to file for Chapter 11 reorganization.
Republic has service agreements to offer passenger service with six airlines, including Frontier Airlines.
Republic plans to file a claim for about $260 million with the court handling Frontier's bankruptcy.
In addition, Republic operates 12 E170 aircraft under its agreement with Frontier. A staggered wind-down of removing those aircraft from service will begin May 1 and continue to June 23. Another five aircraft it had planned to place with Frontier will be placed with another partner.
Republic said revenue from its agreement with Frontier was $6 million a month.