Frontier Airlines Sold At Discount

Indigo Partners LLC is buying Frontier Airlines from Republic Airways Holdings Inc for $36 million in cash and $109 million in assumed debt. This is a sheer discount from the $1.1 billion in cash and assumed debt that Republic Airways Holdings paid for the carrier in 2009.

Frontier passengers will expect less leg room and more fees when flying Frontier in the future. Also it is expected that Frontier will change to an ultra-low cost business model.
Those strategies have been the significant of success in Europe and Southeast Asia with Ryanair and Air Asia X. Its becoming the momentous part of fastest growing Airline strategies for success in the recent decade.

Bill Franke is expected to reinvest Frontier to expand the airline for future growth. Frontier Airlines holds roughly 1.5% of the market in the US, he is expected to expand Frontier as it will take delivery of 80 Airbus A320neo between 2016 and 2021, as Mr Franke brought the rights from Republic.