Southwest makes bid to buy Frontier

July 30, 5:25 PMOrlando Airlines ExaminerHeather Mark

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Photo courtesy Southwest Airlines

Southwest Airlines announced today they are preparing a nonbinding bid to purchase Denver based Frontier Airlines. Frontier, who filed for bankruptcy in April 2008, is scheduled to sell at auction in bankruptcy court in August.

On June 22, 2009, Republic Airways made a $108.8 million bid for Frontier, the same day it also bid on Midwest Airlines for $31 million. Republic was the top bidder for Fronteir until Southwest annouced their $113.6 million bid.

A successful acquisition of Frontier Airlines will allow Southwest to expand its network and boost competition in Denver and other cities. Other than United Airlines who operates over 400 daily departures out of Denver, Frontier was Southwest's principal competition. They have 168 departures compared to Southwest's 113 departures each day. A spokesperson for United said they are not interested in bidding for Frontier.

"We are excited about the opportunity to submit a bid," said Gary Kelly , Southwest's Chairman of the Board, President, and CEO. "We see a strong fit between our Company cultures, a mutual commitment to high quality Customer Service, and similar entrepreneurial roots."

Southwest expects to operate Frontier as a wholly owned subsidiary for several years until services can be combined. Eventually Fronteir's all Airbus fleet will be replaced with Boeing 737s.

Southwest must submit a binding proposal by the court's August 10 deadline.