All Eyes Southwest
By Michael de Yoanna
Created 2009-08-10 09:05

By: Michael de Yoanna [1]

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All Eyes Southwest

Despite the pleas by employees [2] to preserve their airline, there's no guarantee that Frontier [3] as we know it will continue to exist. Dallas-based Southwest Airlines has until 10 a.m. this morning to submit its formal $113.6 million offer, a few million more than what Republic Airways Holdings has put up. If successful, Southwest would eliminate a major competitor at Denver International Airport and gain flights in markets that include Mexican resorts, according to The Denver Post [4]. As aviation analyst Mike Boyd of Boyd Group International in Evergreen points out, Frontier has given Southwest "a bloody nose and a lot of heartburn" since Southwest entered the Denver market three years ago. Meanwhile, if Republic gets Frontier, Bill Swelbar, a research engineer at the Massachusetts Institute of Technology's Center for Air Transportation says it would create "overnight, a new, potentially threatening competitor to Southwest's domestic dominance." The Houston Chronicle [5] writes that Southwest seems to want Frontier to prevent anyone else from buying it. And The Street [6] opines that Southwest's bid "may be viewed as a sign of its failure" in the market.

Source URL: http://www.5280.com/blogs/2009/08/10/all-eyes-southwest

Links:
[1] http://www.5280.com/tag/authors/michael-de-yoanna
[2] http://www.5280.com/../?p=17079
[3] http://www.frontierairlines.com/frontier/home.do
[4] http://www.denverpost.com/ci_13028197
[5] http://www.chron.com/disp/story.mpl/business/steffy/6565253.html
[6] http://www.thestreet.com/story/10565182/1/southwest-if-you-cant-beat-em-buy-em.html