Southwest is Top Bidder for Frontier

In a move that significantly outpaces Republic Airways Holdings’ bid of $108.8 million for Frontier Airlines, Southwest Airlines has decided it can spend $170 million to acquire Frontier and bring it out of bankruptcy. As far as whether or not Southwest can maintain its bidding lead, Republic has not lost hope in acquiring Frontier.
 
Republic’s spokesperson, Carlo Bertolini, stated that his company will be present at the next bankruptcy court auction, but did not suggest that Republic was dead set on bidding. Southwest, though, hopes to win control of its rival uncontested, allowing it to give service to several more cities and removing one of its two Denver competitors.
 
Republic hopes to acquire Frontier so that it may have its own passengers instead of those that end flying with them after being fed off by other big-name carriers. Even if it loses, though, Republic stands to gain $20 million from Southwest’s bid because of its participation as an unsecured creditor in Frontier’s bankruptcy. 

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