How much is Republic Airlines paying to aquire Midwest Airlines?
Republic buying Midwest Airlines Republic Airways Holdings to buy Midwest Airlines, second planned acquisition in 2 days MINNEAPOLIS (AP) — Republic Airways Holdings said Tuesday it will buy struggling Midwest Airlines for $31 million in cash and debt, the second time in two days it has sought to rescue an ailing airline. On Monday, Republic said it would bid $108.8 million to take Frontier Airlines out of bankruptcy. Republic Chairman and CEO Bryan Bedford said he plans to keep the Midwest name, and intends to restore Midwest to the size it was about a year and a half ago. He said he intends to get Midwest flying back to cities it had dropped, citing the recently announced return of flights to Los Angeles and Louisville, Kentucky, set to begin in August. Adding Midwest and Frontier are big risks for Republic, and not just because of concerns about the individual carriers. Until now Indianapolis-based Republic has flown under contract for other big airlines: American, Delta, US Airway
MINNEAPOLIS (AP) — Republic Airways Holdings said Tuesday it will buy struggling Midwest Airlines for $31 million in cash and debt, the second time in two days it has sought to rescue an ailing airline. On Monday, Republic said it would bid $108.8 million to take Frontier Airlines out of bankruptcy. Republic Chairman and CEO Bryan Bedford said he plans to keep the Midwest name, and intends to restore Midwest to the size it was about a year and a half ago. He said he intends to get Midwest flying back to cities it had dropped, citing the recently announced return of flights to Los Angeles and Louisville, Kentucky, set to begin in August. Adding Midwest and Frontier are big risks for Republic, and not just because of concerns about the individual carriers. Until now Indianapolis-based Republic has flown under contract for other big airlines: American, Delta, US Airways, United, and Continental. That meant its main job was controlling costs, not filling seats. But by adding Frontier and
Republic Airways announced Tuesday it was buying Midwest Airlines from TPG Capital for a relative pittance — $6 million cash, $25 mililon in a five-year note that can be converted to Republic Airways stock for $10 a share. The Republic shares closed Tuesday at $6. This follows on Monday’s announcement that Republic is buying Frontier Airlines Holdings Inc. for just under $109 million. Sources: http://aviationblog.dallasnews.com/archives/2009/06/republic-airways—-another-da.
