Summary

• Frontier Airlines has a rich history with multiple ownership changes, shaping its identity in the competitive airline industry.
• Declared a major carrier in 2007, the airline faced financial struggles, leading to bankruptcy and acquisition by Republic Airways Holdings.
• Indigo Partners' acquisition in 2013 marked a new chapter for Frontier, focusing on ultra-low-cost carriers and enhancing growth strategies.

Frontier Airlines, known for its distinctive animal-themed tail designs and commitment to budget-friendly travel, is a prominent player in the competitive airline industry. Founded in February 1994, the airline's ownership has since changed hands several times – marking a storied corporate evolution over three decades that has shaped the identity and market positioning of the Frontier Airlines we know today.

Ownership timeline

The original Frontier Airlines was formed via a merger of Arizona Airways, Challenger Airlines, and Monarch Airlines in 1950. It ceased operations in 1986, and eight years later, two former Frontier employees, Janice Brown and Bob Schulman, along with United Airlines pilot Frederick W. Brown, created the new Frontier Airlines (first known as AeroDenver Travel Services).

Over the next few years, Frontier Airlines was helmed by prominent figures in the US aviation industry, many of whom were former (original) Frontier leadership staff. In 2007, the airline declared that it had been designated as a major carrier by the United States Department of Transportation.

However, the following year saw a damaging financial downturn, leading Frontier to file for Chapter 11 bankruptcy in order to protect its assets and allow for restructuring, per Forbes. In 2009, pending bankruptcy court approval, Republic Airways Holdings acquired all of Frontier's assets. Prior to this, Frontier and Republic Airways had an initial 11-year operational service agreement.

Just three years later, Republic Airways Holdings announced its intention to sell Frontier in a bid to focus on regional contract flights for major carriers. Then, in 2013, the company sold the airline to private equity firm Indigo Partners for approximately $145 million.

Indigo Partners

When Indigo Partners acquired Frontier Airlines in 2013, it ushered in a new era for the carrier. This firm, led by managing partner William Franke, is recognized for its focus on supporting ultra-low-cost carriers, making it a fitting custodian for an airline renowned for its commitment to affordable travel.

According to MarketScreeners, Indigo Partners LLC holds an 80.9% share in Frontier Airlines, with US Global Investors Inc and Ancient Art LP holding 4.742% and 3.918%, respectively.

Indigo Partners also owns the controlling interest in Chilean airline JetSMART and minority stakes in Hungary's Wizz Air and Volaris of Mexico. All of these airlines, including Frontier, are low-cost carriers.

The firm's expertise in the aviation sector has played a role in Frontier's operational and strategic enhancements, contributing to the airline's growth and expansion in the fiercely competitive market.