Republic said $36 million would be paid in cash for the equity of Frontier Holdings. The balance is indebtedness that would be retained by Frontier.
As part of the larger deal, but under a separate agreement, Republic said it would give Frontier its rights related to Republic's Airbus A32 order in exchange for reimbursement of its pre-delivery deposits on that deal, which totaled $32 million.
"I am confident that Frontier will enjoy future growth as Indigo continues the process to position the airline as a leading ultra-low-cost carrier," Republic Chairman, President and Chief Executive Officer Bryan Bedford said in a statement.
The deal is contingent on approval by the Association of Flight Attendants and the pilots' association, FAPAInvest LLC, Republic said.
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