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8/12/13 New airline may get the Spirit of cheap fares - latimes.com
www.latimes.com/business/money/la-fi-mo-frontier-airlines-indigo-partners-discount-20130809,0,3686839.story 1/4
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By Hugo Martin
August 11, 2013 , 10:00 a.m .
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New airline may get the Spirit of cheap fares
32
Get ready for the takeoff of another super-cheap airline
offering ultra-low fares with loads of passenger fees.
Industry insiders say the new super-discount airline may
soon be launched with the help of Indigo Partners, the
Phoenix-based private equity firm that invested in Florida-
based Spirit Airlines in 2006 and helped persuade its chief
executive, Ben Baldanza, to adopt dirt-cheap fares and
abundant fees.
Indigo is reportedly negotiating to buy Denver-based
Frontier Airlines from its parent company, Republic Airways
Holdings. Meanwhile, Indigo has started to divest itself from
Spirit, with Indigo owner William Franke and Indigo
principal John Wilson resigning from the Spirit board of
directors.
“They really are taking the Spirit Airlines playbook from
Florida to Denver,” said Henry Harteveldt, a travel analyst
with New York-based Hudson Crossing.
Indigo officials did not respond to requests for comment, and
Republic Airways representatives would only say that they
expect to sell Frontier to a “third-party purchaser” by
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8/12/13 New airline may get the Spirit of cheap fares - latimes.com
www.latimes.com/business/money/la-fi-mo-frontier-airlines-indigo-partners-discount-20130809,0,3686839.story 2/4
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September.
It would make sense for Indigo to transform Frontier from a
typical low-cost carrier to an ultra-cheap airline because
Spirit has been so profitable, said Fred Lowrance, vice
president and senior research analyst at Nashville-based
Avondale Partners.
The airline reported a profit margin of 8.5% in the three-
month period that ended June 30, more than twice the rate of
many of its competitors, and shares of Spirit have nearly
tripled in value since the company went public in 2011.
“That business model has proven successful,” Lowrance said.
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Comments (3) Add / View comments | Discussion FAQ
rlt2050 at 2:22 PM August 11, 2013
Save money on the luggage fees by wearing a few socks, underwear, shorts and shirts whenyou board. LOL.
kwilson3 at 2:12 PM August 11, 2013
Loads of fees? Gpt change for the toilet?
TruthinSF at 2:12 PM August 11, 2013
The last thing airlines need is lower fares. Fares are too low now, as plane flight has besicallybecome like riding a Greyhous bus in the air. Airlines should raise prices to keep thehorrible, gross people out.
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