My Account Menu

CAPA Login


Register to trial CAPA Membership!

Southwest Airlines' bid for Frontier unsuccessful on key labour terms

14-Aug-2009 10:06 AM

Southwest Airlines stated (13-Aug-2009) its failure in its bid to acquire Frontier Airlines was due to labour conditions. Southwest submitted a bid of more than USD170 million to Frontier Airlines on 10-Aug-2009. Southwest stated it was "not willing to remove the need for the two Pilot Unions to reach agreement". Southwest stated its Culture and relationships with its Employees are "too important to compromise". [more]

Southwest Airlines: "We said all along that we would only move forward on this deal if it proved to be the right decision for our Employees and financially prudent for our Company...We chose not to amend our bid to remove the labour requirement, a key reason our bid was not selected. Our congratulations to Republic Airways and Frontier Airlines...Southwest remains committed to serving the Denver market with our low fares and excellent Customer Service We began serving Denver in 2006 with just 13 flights and have grown to offer 112 nonstop daily flights today. We are very pleased with the response we have seen to our service and growth in Denver, and we will continue to compete vigorously in the market", Gary Kelly, Chairman, President, and CEO. Source: Southwest Airlines, 13-Aug-2009.