August 11, 2009

Southwest ups the ante in Frontier auction

Southwest Airlines dramatically increased its offer for Frontier Airlines, filing a binding bid of $170 million for the bankrupt Denver carrier.

Southwest previously submitted a non-binding bid of $113 million, the Fort Worth (Texas) Star-Telegram reported Tuesday.

Republic Airlines, owners of Chautauqua, Republic and Midwest airlines, also submitted a bid in New York bankruptcy court.

Southwest's bid includes buying 80 percent of Frontier's fleet of Airbus planes, which it will then replace with Boeing 737s over a two year period, the newspaper said.

Republic's plan calls for keeping Frontier largely intact, The Denver Post reported Monday.