April 30 Republic Airways Holdings said
on Tuesday it still plans to shed its Frontier unit by June or
July, depending on whether a sales agreement is reached.
Indianapolis-based Republic, which operates regional
carriers Republic Airlines and Chautauqua Airlines, has been
looking to divest itself of Frontier since late 2011. It had
bought Frontier out of bankruptcy in 2009.
The Wall Street Journal reported in early April that two
investment firms, Indigo Partners LLC in Phoenix, and Anchorage
Capital Group LLC in New York, were competing to buy Frontier.
Talks with Republic were at an early stage and could fall apart,
the newspaper reported.
"Regarding the Frontier separation process, there's recently
been some speculative reporting over the past few weeks,"
Republic Airways Chief Executive Bryan Bedford said during the
company's earnings conference call on Tuesday. "We are simply
not yet at a point in the process where we can answer any
Bedford added that Republic had a goal to shed Frontier in
the June to July period, "assuming we can reach an agreement
that's satisfactory to the parties."
Republic Airways' shares were down 4.3 percent at $11.02.