Indianapolis, IN -
Republic Airways, owners of Frontier and Midwest Express, and a regional carrier for Delta, is in jeopardy. Republic has seen its stock value fall 60% this year, and is down to less than $3 a share, a level that is nearly impossible to recover from.
Issues include their crushing debt, having made large acquisitions during rough economic times, spending over $4 to gain just $1 of assets during its winning bid over Southwest Airlines to take over Frontier.
But Republic has considerable cash on hand, and can be considered an attractive purchase by some other airline, private equity firms, or debt consolidators.
Republic is one of several regional carriers in the U.S., and its largest competitor is SkyWest, which also owns ASA who also just bought ExpressJet.