Categorized | Airlines

Southwest loses bid for Frontier…

Posted on 14 August 2009

Republic Airways won an auction to acquire bankrupt Frontier Airlines over discount carrier Southwest Airlines, the carriers said Thursday. “Republic submitted the highest and best bid, which included substantial improvements from its original investment proposal,” Frontier said in a statement. Southwest, which had submitted a bid of more than $170 million earlier this week, said a key reason its bid wasn’t chosen was because it chose not to remove a requirement calling for pilot unions at its company and Frontier to reach agreement.

Seniority was a major sticking point in talks between pilots at Southwest and Frontier, the head of Southwest’s pilot union had said earlier yesterday.

Source: Wall Street Journal

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