Southwest Airlines' bid for Frontier runs into trouble
09:49 AM CDT on Thursday, August 13, 2009
By ERIC TORBENSON / The Dallas Morning News
Southwest Airlines' bid for Frontier Airlines may be in trouble.
According to an e-mail purportedly sent from Southwest’s pilot union to its members, the union failed to reach a deal with Frontier’s pilots union last night over integration terms. Getting that deal is a condition of Southwest’s bid. The e-mail from the union says Southwest will ask for an extension on its $170 million bid for Frontier’s assets, as the auction was set to take place on Thursday.
Southwest Airlines Pilots Association spokesman Neal Hanks said in an e-mail that the union would not comment until events had played out in court. A message to Southwest wasn’t immediately returned Thursday morning.
Southwest CEO Gary Kelly said Wednesday after a transportation conference in Irving that the lack of agreements between labor unions could scuttle Southwest’s bid.
Southwest is bidding against Republic Airways Group Inc., which bid $108.75 million for Frontier and intends to let the carrier operate on its own. Southwest would absorb Frontier into its system over the course of two years.
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