Lynx Aviation, the feeder airline for Frontier Airlines, could find a new owner, parent-company officials said Wednesday in a discussion of first-quarter financial results.
“We have some interest in both the entity and interest in just buying the aircraft,” said Hal Cooper, chief financial officer for Republic Airways. “We’re talking with people.”
Republic has announced plans to phase out Lynx by September, returning five of the 11 Bombardier Q400 turboprops to lessors and selling the six that are owned.
The turboprops are being replaced by Embraer 170 and 190 jets, the regional aircraft that Republic has operated under contract for larger airlines.
Passenger traffic for Republic’s branded operations was up in the first quarter of this year compared with 2009, Republic reported, but it had a $36.5 million net loss in the period compared with $2.2 million in net income in 2009.
The loss does not include $11.5 million in charges related to the April 13 decision to drop the Midwest brand and fly both airlines — which Republic purchased last year — under the Frontier brand.
Republic officials predict capacity and revenue increases in Denver and Milwaukee in the second and third quarters.
Republic just operated fixed-fee service for large network carriers such as United Airlines prior to acquiring Frontier, Lynx and Midwest.
Republic chief executive Bryan Bedford said the impact of the proposed United-Continental merger “could be a positive” if the combined airline uses United pilots’ agreement that allows more outsourced fixed-fee flying than Continental’s.
Republic’s contracts with United are not cancelable, Bedford said, and phase out between 2015 and 2019.
