Republic considers sale of Frontier Airlines

Republic Airways Holdings Inc. announced plans Tuesday to begin considering the sale of its Frontier Airlines business.
The Indianapolis-based airline operator acquired Denver-based Frontier out of bankruptcy protection in 2009 and absorbed the former Oak Creek-based Midwest Airlines under the Frontier brand in 2010.
However, soaring fuel costs and intense competition in Denver, notably from Southwest, forced Republic to restructure Frontier and consider cutting its stake to a minority share by 2014 after exchanging equity for employee concessions.
In a conference call with analysts Tuesday, Republic chairman and chief executive Bryan Bedford said, "It is time to start to separate the two businesses.”
Bedford cited private-equity buyers or strategic investors as potential acquirers.