In 2009, Frontier Airlines was bought out of debt, for a $109 million dollar paycheck. On Tuesday, Republic Airways agreed to sell the airlines, to a private equity company, for only $36 million dollars. The private equity company that purchased the airlines out of debt was headed by William Franke. The total amount for the deal was $145 million; the $36 million was agreed to be paid in cash by the equity group of buyers, and the $109 million dollar debt will be retained by Frontier.
It was also hinted that after the deal closes, and all cash payments are made, money will be put into the airline, for improving the company’s brand, and trying to inject profits. The deal is set to close in December of this year, as long as it is approved by the association of flight attendants, as well as the federal communications commissions offices, which will both likely be approved during negotiations.
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