UPDATE 1-Frontier Air gets judge's OK to sell to Republic

* Judge OKs $108.8 mln deal for 100 pct of Frontier

* Bankruptcy auction to be held Aug. 11 if new bids emerge

By Phil Wahba

NEW YORK, July 13 (Reuters) - A federal judge approved a deal on Monday under which bankrupt Frontier Airlines Holdings Inc (FRNTQ.PK: 株価, 企業情報, レポート) will sell itself to Republic Airways Holdings Inc (RJET.O: 株価, 企業情報, レポート) if no other better bids emerge, paving the way for the airline's exit from bankruptcy within months.

Under terms of the deal, Republic Airways will pay $108.8 million for a 100 percent stake in Denver-based Frontier, which would become a wholly owned subsidiary of Republic, Frontier said in a statement.

Frontier said it expects to emerge from Chapter 11 bankruptcy protection later this year.

But the deal could be scuttled if potential rivals make higher offers, leading to a bankruptcy auction scheduled to be held by Frontier on August 11.

If a better bid emerges, Frontier has the right to terminate its deal with Republic, which owns Chautauqua Airlines, Republic Airlines and Shuttle America, according to terms approved by Judge Robert Drain of federal bankruptcy court in Manhattan.