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Southwest bid for Frontier could be in trouble

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Southwest Airlines Co.'s bid for Denver-based Frontier Airlines Holdings Inc. may have hit turbulence, according to the Dallas Morning News.

Dallas-based Southwest is bidding against Indianapolis-based Republic Airways Holdings Inc. for the rights to acquire Frontier out of bankruptcy.

The newspaper reported late this morning that, in an e-mail purportedly sent from Southwest's pilot union to its members, the union failed to reach a deal last night with Frontier's pilot union over integration terms. Getting that deal is a condition of Southwest's bid.

The newspaper reported that the e-mail from the union says Southwest will ask for an extension on its $170 million bid for Frontier's assets. A bankruptcy court auction is in progress today.
 
 
 

Republic bid $108.75 million for Frontier and intends to let the carrier operate on its own. Southwest would absorb Frontier into its system over the course of two years.

The difference in the bids, however, isn't as wide as it would appear because Republic is a major secured and unsecured creditor of Frontier. A report on the thedeal.com today estimated the difference is actually less than $10 million when factoring in other considerations.

Earlier today, the Denver Post reported that Denver-based business interests are hoping Republic emerges as the winner. In fact, the Metro Denver Economic Development Corp. is encouraging Republic to buy Frontier and move its headquarters from Indianapolis to Denver, according to the newspaper.

Tom Clark, executive vice president of the business group, told the newspaper that his organization has been attempting to "go after all of Republic" because the company would probably maintain and create more jobs in Denver than Dallas-based Southwest.

Frontier has an aircraft-maintenance operation at Denver International Airport, and Clark expressed concern about the future of 200-plus jobs there if Southwest took over, the newspaper reported.

Officials from Republic could not be reached this morning to comment on the report.

Frontier filed for bankruptcy protection in April 2008 after its credit-card processor moved to hold back a big chunk of the proceeds from ticket sales, raising the prospect of a cash crunch. According to court documents, a consultant hired by the airline began contacting potential buyers in January, and some met with the airline's management over the next two months.

Some prospective investors backed out, however, because of lack of available credit and the downturn in the airline industry.


 
 
 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

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  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

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