Republic Airways Holdings reaches agreement to take over Frontier Airlines

Airline Industry Information, June 23, 2009

AIRLINE INDUSTRY INFORMATION-(C)1997-2009 M2 COMMUNICATIONS

Republic Airways Holdings Inc (NASDAQ/NM:RJET) said on Monday that it has agreed to be the equity sponsor of Frontier Airlines' reorganisation plan.

Under the agreement Republic will purchase 100% of the equity in the reorganised company for USD108.75m.

The deal is subject to bankruptcy court approval and other conditions.

If approved and implemented Frontier Airlines' parent company, Frontier Airlines Holdings Inc (Pink Sheets:FRNTQ), would emerge from Chapter 11 bankruptcy protection and become a wholly owned subsidiary of Republic.

Frontier Airlines and Lynx Aviation would maintain their current names and would continue to operate as normal.

Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America.

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