A bankruptcy judge on Monday approved a plan by Republic Airways Holdings to buy Frontier Airlines for $108.8 million, although other bidders could still come forward according to the Associated Press.
Denver-based Frontier Airlines Holdings Inc. said it can get out of the Republic purchase if a better offer comes along. Any competing bidders would have to make an initial proposal by Aug. 3, with final proposals due Aug. 10. If other bidders come forward, an auction will take place in bankruptcy court on August 11th.
Indianapolis-based Republic Airways Holdings Inc. is a regional carrier that currently flies under contract for other airlines. Adding Frontier will put Republic in the business of competing for passengers to fill flights. Frontier has been under intense pressure in Denver from Southwest Airlines Co. and UAL Corp.'s United Airlines, although it has shown an operating profit through May.
Republic has also announced plans to buy Midwest Airlines for $31 million in cash and debt.
Republic Airways Holdings is based in Indianapolis, Indiana. Republic is an airline holding company that also owns Chautauqua Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 105 cities in 36 states, Canada, Mexico and Jamaica through airline services agreements with seven U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect, Mokulele Airlines and US Airways Express. The airlines currently employ approximately 4,500 aviation professionals and operate 215 jets.
