Southwest Airlines has put forward a bit to take over the struggling Frontier Airlines, following a bid by regional carrier Republic Airlines.

Denver based carrier Frontier Airlines has routes to 50 cities in the US, Mexico and Costa Rica, placing them in direct competition of major airlines such as United and Southwest airlines.

Taking over Frontier would add to Southwest’s destinations and remove one of its major competitors in the airlines hub city of Denver, Colorado.   Southwest presently have 36 percent of the Denver market whilst United around 37 percent.

“This provides us a great way to grow substantially in a city that is very important to us,” said Bob Jordan, Southwest spokesman.

If the initial Republic Airways takeover bit is successful, it would bring the regional airline up to the same level as some of America’s largest airlines and could potentially win passengers over who are fed up with the big-name carriers.

Southwest vows to keep all of Frontier’s routes, including flights Atlanta which Southwest does not currently service,  Southwest would also phase out Frontier’s Airbus fleet and replace in favour of Boeing 737s.  The takeover would also include Frontier’s regional carrier Lynx.

A Republic Airways spokesman has defended the airlines bid for Frontier, saying that the two bids aren’t as far apart as it appears, based on expenses like aircraft lease rejections.

However financial analysts with Jesup & Lamont Securities say that it is quite unlikely that Republic Airways could match the bid made by Southwest.

“I seriously doubt they have the capital to do that,” she said. “This is an all-cash bid. Southwest is going to write a check.”

Steve Snyder, Frontier spokesman, said the carrier wouldn’t have any comment until it finishes reviewing Southwest’s bid.

Denver based Frontier airlines have been operating under bankruptcy since April last year.

Thanks to Wall Street Journal for the above quotes.