July 26 Republic Airways Holdings Inc
said on Friday it has reached a nonbinding deal to sell its
Frontier unit, sparking a 5.6 percent rise in its shares.
Chief Executive Bryan Bedford said the terms require certain
conditions to be met to reach a binding agreement and complete
the potential sale. Republic did not identify the buyer but
referred to it as a third party.
"If a binding sales agreement is reached ... we currently
would expect such a closing to occur late in the third quarter,"
Bedford said during an earnings conference call.
Indianapolis-based Republic, which operates regional
carriers Republic Airlines and Chautauqua Airlines, has been
looking to divest itself of Frontier since late 2011. It bought
Frontier out of bankruptcy in 2009.
Bedford said the exclusivity period with the potential buyer
goes beyond Republic's current annual meeting date of Aug. 13.
The company later said the meeting was rescheduled for Sept 17.
Shares of Republic were up 73 cents to $13.76.