Republic Airways said Thursday it completed its acquisition of Denver-based Frontier Airlines for USD$108.75 million.

Frontier is emerging from bankruptcy to be a Republic subsidiary, joining the ranks of Midwest Airlines, which Republic acquired on July 31.

Republic was the sponsor of Frontier's plan of reorganization and acquired 100 percent equity in the reorganized company.

Frontier filed for bankruptcy protection in April 2008 and in June reached a deal to be acquired by Republic. That plan was briefly challenged by a rival bid from Southwest Airlines.

But a Southwest deal hinged on an agreement between the two carriers' pilots' unions, which never transpired.

Republic, which was Frontier's largest unsecured creditor, also waived recovery rights on its USD$150 million general unsecured claim, helping it edge out Southwest's bid.