Indianapolis-based Republic Airways Holdings Inc. and Southwest Airlines Co. will battle it out in a bankruptcy court auction
today for the rights to acquire Denver-based Frontier Airlines Holdings Inc.
Republic Airways Holdings won the bankruptcy court auction for Frontier Airlines today, buying the Denver-based carrier
for almost $108.8 million after rival Southwest Airlines Co.’s bid was rejected.
Southwest Airlines Co.’s bid for Denver-based Frontier Airlines Holdings Inc. may have hit turbulence, according to the Dallas
Morning News.
Republic Airways Holdings says it has completed its acquisition of privately held Midwest Airlines
for $31 million in cash and debt.
By purchasing two struggling airlines for which it flies, Republic Airways Holdings is taking aboard substantial risks that
threaten its profitable niche, analysts say. Frontier Airlines and Midwest Airlines are not only leaking money, but fly at
an altitude where major carriers routinely dogfight
in a fare war Republic hasn’t had to fight as a contract carrier.
Republic Airways Holdings plans to add more than 1,000 jobs, including some at its Indianapolis headquarters, thanks to a deal to fly larger aircraft for US Airways and its first contract to fly for Continental Airlines.
