Republic Airways Holdings Inc RJET.O said on Tuesday it would sell Frontier Airlines to private equity firm Indigo Partners LLC in a deal valued at about $145 million.
The agreement ends a two-year-long search by Indianapolis-based Republic to unload Frontier, which it bought out of bankruptcy in 2009.
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Phoenix-based Indigo will pay $36 million in cash for the equity of Frontier Holdings and assume Frontier’s debt.
Republic, which provides regional service for bigger carriers such as Delta Air Lines Inc (DAL.N) and United Continental Holdings Inc UAL.N, has been restructuring Frontier over the past year to lower its costs.
Indigo is led by co-founder William Franke, who was chairman of low-cost carrier Spirit Airlines Inc SAVE.O.