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Sun, Sep 13, 2009

Frontier Airlines Cleared To Emerge From Chapter 11

Bankruptcy Judge Approved Plan Thursday

In an uncontested hearing in U.S. Bankruptcy Court in New York Thursday, Frontier Airlines' plan to emerge from Chapter 11 bankruptcy was approved, clearing the way for its acquisition by Republic Airways Holdings.

Under the court-approved plan, Frontier will be acquired by Republic on or about October 1st. Republic plans to operate Frontier as a stand-alone operation, according to The Sacramento Business Journal. Republic won a bidding war with Southwest Airlines for the right to buy Frontier. Frontier's unsecured creditors voted overwhelmingly earlier this month to approve the plan.

Frontier has cut jobs, planes and costs, and has shown several straight months of profitability along the way to emerging from bankruptcy.

What remains to be seen is if Republic continues to base the airline in Denver. The Business Journal reported that Republic had given signs it might move about 250 of Frontier's Denver jobs to Milwaukee or Indianapolis.

FMI: www.frontierairlines.com, www.rjet.com

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