Republic Airways’ holding in Frontier Airlines will be reduced to a minority stake by the end of 2014, according to a new agreement with Frontier pilots.
Frontier pilots have agreed to give up future pay raises, and accepted reductions in retirement plans and vacation in exchange for a yet-to-be determined size stake in Frontier. Pilots will vote on the tentative agreement on Friday.
Republic will also reduce its stake in Frontier by selling to new investors. It will also try to raise at least $70 million in debt or other financing for Frontier and buy new aircraft.