Davis Polk & Wardwell LLP is advising Frontier Airlines Holdings, Inc. and its affiliates in connection with the proposed acquisition by Republic Airways Holdings, Inc. of a 100% equity stake in Frontier for $108.75 million. Republic would serve as the equity sponsor of Frontier’s chapter 11 plan of reorganization and, upon its emergence from bankruptcy, Frontier would become a wholly owned subsidiary of Republic. The investment and the proposed plan of reorganization are subject to bankruptcy court approval and various other conditions.

Frontier Airlines is the second-largest jet service carrier at Denver International Airport and serves more than 50 destinations in the U.S., Mexico and Costa Rica. Frontier Airlines Holdings, Inc. and its subsidiaries (including Frontier Airlines) filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code on April 10, 2008 in the Southern District of New York. Based in Indianapolis, Indiana, Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America.

The Davis Polk insolvency and restructuring team includes partner Marshall S. Huebner and associates Damian S. Schaible, Darren S. Klein, Steven C. Krause, Adam Rachlis, Arvin I. Abraham (not yet admitted) and Wei Deng (not yet admitted). The M&A team includes partners Daniel G. Kelly Jr. and Julia K. Cowles and associates Peter M. Lamb, Carmen E. Atkins and Jeremy Brodsky, all of the Menlo Park office. Partner Kathleen L. Ferrell and associate Joshua Ruland are providing tax advice. Counsel George R. Ince Jr. is providing employee benefits advice. Except as noted above, all members of the Davis Polk team are based in the New York office.