As I noted earlier today on this blog, and in a subscriber-only story on AWIN, Southwest's bid for Frontier appeared to be in trouble. Now the deal is dead. Southwest issued a news release tonight saying its bid was rejected in large part because it would not get rid of a provision in its offer that the deal would not close unless the Southwest and Frontier pilots unions reached an agreement on how to work together, including how to integrate their seniority lists.
Republic Airways Holdings won with its original bid of $108.75 million, much lower than Southwest's $170 million offer, and agreed to waive any right to recovery on its $150 million general unsecured claim. With Republic having already completed its acquisition of Midwest, it already is talking about "integrating" the airlines, so we'll have to find out exactly what that will entail. You can read Republic's full comments in its press release here.
Bryan Bedford, Chairman, President and CEO of Republic. “Frontier has made impressive strides in returning to sustained profitability in a challenging and uncertain economic environment. We congratulate the employees of Frontier. Their commitment and perseverance during the bankruptcy process has allowed the Frontier brand to survive and thrive. Now, we have to turn our attention to the important work of integrating two great brands: Frontier and Midwest Airlines, which enjoy strong loyalty in Denver and Milwaukee.”