Southwest Airlines makes a bid for Frontier airlines

July 31, 2009 – 10:11 am – No Comment

Southwest Airlines Co. is looking to knock off one of its rivals by acquiring Frontier Airlines. Currently, the Denver-based airline carrier is operating under bankruptcy protection. Currently, there is an offer on the table that says the parent company of Republic Airways can purchase Frontier Airlines, and it has been approved by the courts. However, the offer can be canceled if a better offer pops up.

Southwest could be putting up the better offer to take the bid off the table for Republic Airways. In a statement, Southwest said that it submitted a nonbinding $113.6 million bid for the bankrupt airline. It hopes that putting forth the bid will help it shape up the proposal and finalize the purchase. Southwest currently has an August 10th deadline for submitting a binding bid. If some other qualified bidder submits an offer, there will be an auction held on August 11th.

“We are excited about the opportunity to submit a bid,” Southwest CEO Gary Kelly said in a statement. “We see a strong fit between our company cultures, a mutual commitment to high quality customer Service, and similar entrepreneurial roots.”

Southwest airlines has just recently entered back into the Denver market. In Denver it only competes with United and Frontier; if it purchases Frontier then the Denver market will likely belong mostly to Southwest.

Southwest airlines has always scored well in customer service, but its limited by rules and regulations and the fact it doesn’t fly into a lot of markets or into “in demand” airports. I understand that Love Field in Dallas is its airport, so it doesn’t fly into DFW, but I can’t catch a flight on a Southwest flight unless I decide to drive almost 4 hours to Jackson, Miss.