Southwest Airlines confirmed (10-Aug-09) it has submitted a binding cash offer of more than USD170 million for Frontier Airlines. The offer is well above Republic Airways’ USD108.8 million bid. Frontier will be sold at auction on 13-Aug-09, as part of Frontier's bankruptcy case (AP, 10-Aug-09). Southwest reportedly plans to acquire approximately 80% of Frontier's existing Airbus fleet (or approximately 40 aircraft), plus all of Lynx. Initially, Frontier would operate its Airbus aircraft as it does today, with a planned retirement of the Airbus fleet and transition to Southwest's B737s over a period of approximately 24 months. Southwest intends to maintain all existing markets, as well as add new non-stop routes from Denver that are not currently served by either carrier. [more at AmericaAviation.aero]
Southwest Airlines submits binding cash offer for Frontier
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US airlines Part 2: LCCs and ULCCs face the same cost overhang as their larger rivals
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Those lower cost and ultra-low cost airlines also face similar challenges to their larger counterparts – cost pressure from new labour contracts and rising oil prices. And like their larger rivals, most of the lower cost US airlines are plotting lower capacity growth in 2017 as a means to improve their respective revenue performances.
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This is Part 2 of two reports examining the outlook for US airlines in 2017.