NEW YORK—A bankruptcy judge on Monday approved a plan by Republic Airways Holdings to buy Frontier Airlines for $108.8 million, although other bidders could still come forward.
Denver-based Frontier Airlines Holdings Inc. said it can get out of the Republic purchase if a better offer comes along. Any competing bidders would have to make an initial proposal by Aug. 3, with final proposals due Aug. 10. If other bidders come forward, an auction will take place in bankruptcy court on Aug. 11.
Frontier already sought other investors during the process that resulted in the Republic bid.
Indianapolis-based Republic Airways Holdings Inc. is a regional carrier that currently flies under contract for other airlines. Adding Frontier will put Republic in the business of competing for passengers to fill flights. Frontier has been under intense pressure in Denver from Southwest Airlines Co. and UAL Corp.’s United Airlines, although it has shown an operating profit through May.
Republic has also announced plans to buy Midwest Airlines for $31 million in cash and debt.
Republic shares rose 12 cents, or 2.3 percent, to $5.33 in afternoon trading. Frontier’s bankruptcy plan calls for its old shares to be canceled.
