A bidding war of sorts is on for the small, bankrupt, Denver-based carrier, Frontier Airlines! While Republic Airways was set to acquire Frontier after its $108.8 million offer submitted in late June - the offer having received tentative approval July 13 - Southwest Airlines has submitted a $113.6 million nonbinding bid for the low-fare carrier on July
30!

Frontier, which sought bankruptcy protection in April 2008, has confirmed Southwest's initial, nonbinding acquisition bid; and is now seeking competing bids - which implies that its deal with Republic will fall flat if a higher offer comes Frontier's way!

Interested parties can submit a binding bid for Frontier by the August 10 deadline, as per the terms specified by a US Bankruptcy Court's appraisal of Republic Airways' offer. Thereafter, an auction of the assets of the airline would be held on August 11, at Davis, Polk & Wardwell - a New York law firm which is representing Frontier in the restructuring.

In case its merger with Frontier comes through, Southwest said it intends operating Frontier as a wholly-owned subsidiary "for a period of time with its Airbus aircraft and personnel."

However, after the end of the stipulated "period," which would most likely be nearly two years, Southwest - planning to make a "substantial investment" in Frontier - would likely retire Frontier's Airbus fleet and go in for its all-Boeing 737 fleet!