DENVER (CBS4) – Republic Airways Holdings Inc. says it will try to shrink its ownership of Frontier Airlines to a minority stake by the end of 2014 under an agreement with Frontier pilots.
Republic has a split operation in which it flies for hire by major airlines, and also operates Frontier as its own airline. Frontier has been losing money.
The deal between Republic and the Frontier pilots includes cuts such as giving up future pay raises, and reductions in retirement and vacation. In exchange, they’ll get a stake in Frontier. The size of their ownership has not been decided. Pilots will vote on the proposed deal on Friday.
Republic also says it will look for new investors in Frontier, which would reduce Republic to a minority owner by the end of 2014.
(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)