Southwest Airlines could increase its offer for Frontier Airlines should a bidding war emerge for the Denver-based carrier.
Dallas-based Southwest plans to bid at least $113.6 million for Frontier by 11 August. Frontier will be auctioned off in bankruptcy court next month. Southwest's proposed bid exceeds the $108 million offer from Republic Airways Holdings, which had previously partnered with Frontier.
Bob Jordan, Southwest executive vice president of strategy and planning, pointed out during a 30 July media call that Southwest could raise its offer if needed.
The proposed $113.6 million bid is actually the minimum Southwest would offer for its competitor, he says. Jordon adds this does not necessarily mean the low-cost carrier will increase the value of the bid.
"But at this point, we're in this to win," he says.
Frontier filed for Chapter 11 bankruptcy protection in April 2008.