Southwest Airlines submitted today a binding cash offer of more than $170 million for rival Frontier Airlines ahead of the Denver-based carrier being auctioned off in bankruptcy court on 13 August.
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Frontier and Southwest overlap in Denver in about 27 markets, Southwest has said. There are about six cities that are served by both carriers but for which only Frontier currently serves on a non-stop basis.
Southwest would not be able to build much of a schedule using Frontier’s limited gate space at Hartsfield-Jackson.Airport general manager Ben DeCosta said no other gates are currently available.
If Southwest wanted to expand in Atlanta, “we would talk to them,” DeCosta said. “We’re always looking for ways to accommodate competitive service.”
DeCosta said he does not know if Southwest could make a big difference in fares. He noted that AirTran Airways’ growth into a large discount carrier has already provided major competition for hometown giant Delta Air Lines.
“You’d have to take a look,” DeCosta said. “What we have now is AirTran and AirTran’s presence and their ability to run a robust operation here has kept fares fair.”
DALLAS, TX--Aug. 13, 2009--Southwest Airlines (NYSE: LUV) confirmed today that its bid to acquire Frontier Airlines was not selected. Southwest submitted a bid of more than $170 million to Frontier Airlines on Monday, Aug. 10, 2009, in accordance with the procedures established in the U.S. Bankruptcy Court for the Southern District of New York
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