On the Road: Republic Airways grows

By Joe Brancatelli

ROUTE MAP

The New Big Name in Small Airlines Is Republic Airways: Two troubled smaller carriers, Denver-based Frontier Airlines and Milwaukee-based Midwest Airlines (fka Midwest Express), were purchased in rapid-fire succession late in June. The moves were made by Republic Airways, the new big name in small airlines. If you don’t know Republic, here’s the backgrounder:

It owns three regional carriers (Chautauqua, Republic and Shuttle America), flies commuter service for all of the legacy carriers, recently purchased a controlling interest in Mokulele, the start-up inter-island carrier in Hawaii, and is funded by Wexford Capital, a powerful, under-the-radar investment group.
Republic first moved on Frontier, announcing that it had made a $108.75 million bid to purchase the bankrupt carrier, which has reported seven consecutive profitable months.
It then announced the Midwest buy, agreeing to pay $31 million to purchase it from the investment group that once controlled both Continental and America West airlines.
Although Republic’s long-term plans are not known, the company’s top executive, Bryan Bedford, says both Frontier and Midwest will continue to operate as separate airlines.
One immediate switch, however, will come at Midwest. Midwest will shed its remaining Boeing 717 jets and become an all-regional-jet carrier. The move to regional-carrier status is a big emotional and physical comedown for Midwest, which once offered flights with all-leather 2×2 seating and lavish, restaurant-quality meals at coach-class prices.