Republic Airways Holdings announced Tuesday that it is extending the exclusivity of the sale process for its Denver-based subsidiary, Frontier Airlines, by two weeks.
Republic CEO Bryan Bedford had already the annual shareholder meeting, originally set for Aug. 13, to Sept. 17 in light of the potential sale. Once Tuesday approached, the Indianapolis-based company decided to set Sept. 30 as the new deadline for entering into a definitive agreement.
“Sitting here today, we have made substantial progress towards reaching a definitive agreement with the buyer and,” Bedford said in a news release, “while we can make no assurances, we believe providing the additional time will allow for the process to be completed.”
Bedford announced at its second-quarter earnings call in July that Republic had entered into a nonbinding preliminary agreement with a potential buyer and that it hoped to have the sale complete by its third-quarter earnings report at the end of September.
Two private equity firms were rumored to be interested in purchasing the low-cost-carrier in the spring. But Phoenix-based Indigo Partners LLC rose to the speculative top when it, along with individuals associated with the firm, sold all stake in Spirit Airlines this summer.
Additionally, Indigo’s managing partner William Franke stepped down as chairman of the Miramar, Fla.-based airline last month.
Analysts say these actions suggest a cleaning out of competing interests so as to align itself for the acquisition of another carrier.
The other firm considered a potential suitor is Anchorage Capital Group of New York City.
Franke, the former chief executive of America West Airlines, founded Indigo in 2002 and was the controlling company of Spirit, putting it up for public offering in 2010.
Spirit is known for its ultra-low-cost fare structure that “unbundles” costs previously included in tickets, presenting them as an a la carte menu of optional fees instead.
Kristen Leigh Painter: 303-954-1638, kpainter@denverpost.com or twitter.com/kristenpainter
