JumpJetter
Basking in LUV!
- Joined
- Nov 25, 2001
- Posts
- 356
So if SWA submits the only bid...how does that change the dymanic?
UPDATE 2-Southwest submits $170 mln binding bid for Frontier
Mon Aug 10, 2009 3:09pm EDT
(New throughout; Adds details from Southwest announcement)
NEW YORK, Aug 10 (Reuters) - Southwest Airlines (LUV.N: Quote, Profile, Research, Stock Buzz) said on Monday it submitted a binding bid of more than $170 million for Frontier Airlines Holdings Inc (FRNTQ.PK: Quote, Profile, Research, Stock Buzz), at least $56 million more than its initial offer for the bankrupt carrier.
In a release, Southwest said it acquire about 80 percent of Frontier's existing fleet of 51 Airbus planes, plus all of Lynx, a regional carrier that operates 11 aircraft for Frontier.
A transition to Southwest's Boeing 737s and the retirement of Frontier's planes will occur over a period of 24 months.
Southwest said it intends to maintain "all existing markets" and add new nonstop routes from Denver that are not served by either carrier currently.
An auction for the Frontier is expected to commence on Thursday, August 13, Southwest said. Bankruptcy filings had indicated that the auction could occur as early as August 11.
"If our bid is successful, we will return to growth mode in the midst of a deep recession, expand our network in Denver to include many attractive destinations that we don't currently serve today, and offer Denver travelers a stable, low-fare airline," said Southwest Chief Executive Gary Kelly in a blog post.
In late July, Dallas-based Southwest said it was vying to buy Frontier for $113.6 million, besting an earlier bid from Republic Airways Holdings (RJET.O: Quote, Profile, Research, Stock Buzz). A court approved the Republic bid but left the door open for higher offers.
Calls to press representatives for Republic and Frontier were not immediately returned.
The president of Frontier's pilots union told Reuters no other binding offers were submitted for Frontier. The Frontier Airline Pilots Association sits on the carrier's committee of unsecured creditors.
Southwest shares fell about 2.2 percent, or 20 cents, to $8.91 on the New York Stock Exchange at mid-afternoon. Republic Airways was off 24 cents, or 4.04 percent, at $5.70 on Nasdaq. (Reporting by Deepa Seetharaman; Editing by Richard Chang and Steve Orlofsky)
UPDATE 2-Southwest submits $170 mln binding bid for Frontier
Mon Aug 10, 2009 3:09pm EDT
(New throughout; Adds details from Southwest announcement)
NEW YORK, Aug 10 (Reuters) - Southwest Airlines (LUV.N: Quote, Profile, Research, Stock Buzz) said on Monday it submitted a binding bid of more than $170 million for Frontier Airlines Holdings Inc (FRNTQ.PK: Quote, Profile, Research, Stock Buzz), at least $56 million more than its initial offer for the bankrupt carrier.
In a release, Southwest said it acquire about 80 percent of Frontier's existing fleet of 51 Airbus planes, plus all of Lynx, a regional carrier that operates 11 aircraft for Frontier.
A transition to Southwest's Boeing 737s and the retirement of Frontier's planes will occur over a period of 24 months.
Southwest said it intends to maintain "all existing markets" and add new nonstop routes from Denver that are not served by either carrier currently.
An auction for the Frontier is expected to commence on Thursday, August 13, Southwest said. Bankruptcy filings had indicated that the auction could occur as early as August 11.
"If our bid is successful, we will return to growth mode in the midst of a deep recession, expand our network in Denver to include many attractive destinations that we don't currently serve today, and offer Denver travelers a stable, low-fare airline," said Southwest Chief Executive Gary Kelly in a blog post.
In late July, Dallas-based Southwest said it was vying to buy Frontier for $113.6 million, besting an earlier bid from Republic Airways Holdings (RJET.O: Quote, Profile, Research, Stock Buzz). A court approved the Republic bid but left the door open for higher offers.
Calls to press representatives for Republic and Frontier were not immediately returned.
The president of Frontier's pilots union told Reuters no other binding offers were submitted for Frontier. The Frontier Airline Pilots Association sits on the carrier's committee of unsecured creditors.
Southwest shares fell about 2.2 percent, or 20 cents, to $8.91 on the New York Stock Exchange at mid-afternoon. Republic Airways was off 24 cents, or 4.04 percent, at $5.70 on Nasdaq. (Reporting by Deepa Seetharaman; Editing by Richard Chang and Steve Orlofsky)