*Republic paid $6 mln cash, issued $25 mln note
*Midwest to operate as subsidiary
ATLANTA, July 31 Republic Airways Holdings
RJET.O, which faces competition from Southwest Airlines Co
(LUV.N) as it seeks to acquire bankrupt Frontier Airlines
FRNTQ.PK, said on Friday that it completed the acquisition of
Midwest Airlines from Texas private equity group TPG Capital.
Indianapolis-based Republic said it paid TPG $6 million in
cash and has issued a $25 million five-year note that can be
converted to Republic stock at $10 a share.
The company said Midwest, which is based in Wisconsin,
would operate as a Republic unit, flying under its own name.
In a statement, Republic Airways pledged to bring
"operational and cost efficiencies" as it looks to grow
On Thursday, Southwest Airlines said it submitted a
nonbinding proposal to acquire Frontier Airlines for a minimum
of $113.6 million, compared with Republic's deal to acquire the
carrier for $108.75 million. Southwest said it would study
Frontier's books to prepare to put forth a binding bid to be
submitted by the bankruptcy court's Aug. 10 deadline.
(Reporting by Karen Jacobs; editing by Carol Bishopric)