Gettin’ Carried Away

Denver-based Frontier Airlines has seen better days. In April 2008, the airline filed for bankruptcy and it will be sold at auction in court this August. Indianpolis-based Republic Airways was the first aviation company to submit a bid for Frontier. However, according to the Southwest Airlines press release that was released today, “The carrier [Southwest Airlines] has submitted a nonbinding proposal in accordance with the bidding procedures established in the U.S. Bankruptcy Court for the Southern District of New York. The bid is worth a minimum of $113.6 million, which is in excess of the bid currently filed by Republic Airways.

Southwest has until August 10 to submit a binding proposal. As a low-cost air carrier, boasting a “No Hidden Fees” promise, Southwest Airlines is already a popular choice for travelers today. I mean, I even find myself browsing the website, picking some of my U.S. trips based on Southwest’s sales, which is why I’m heading to Pittsburgh next week (for under $100 roundtrip). The acquisition of Frontier would no doubt benefit the company even more, allowing it to expand its service. Southwest already launched brand-new routes to Minneapolis, Boston and New York this year, and getting Frontier would give Southwest new destinations for the end of 2009 and beyond.

And how much are the bids so far? Republic Airways offered $108.8 million, and Southwest’s non-binding bid has already outbid Republic at $113.6 million. But will Southwest go through with it? I think they probably will, but we’ll have to wait until August 10 to find out for sure.