Republic Airways completes sale of Frontier unit to Indigo

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The sale of Frontier Airlines to a company that plans to turn it into an ultra-low-cost airline is a done deal.

New owner Indigo Partners LLC said it will refashion Frontier Airlines now that its deal with Indianapolis-based Republic Airways Holdings Inc. has closed.

Ultra-low-cost airlines, including Spirit Airlines, generally charge low fares but have fees for extras like using the overhead bin or printing a boarding pass at the airport.

William Franke runs Indigo, and used to be Spirit's chairman. He says demand is growing for more affordable airline options.

Indigo says Frontier will continue to be based in Denver.

Republic said selling Frontier for $36 million plus assumed debt will let it refocus on running feeder airlines for major carriers such as Delta and United.

Republic shares rose 8 cents early Wednesday, to $10.45 each.

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