Southwest Airlines lost its bid to acquire Frontier Airlines, foiling the potential for Southwest to begin flying to Atlanta by taking over Frontier’s flights.

Republic Airways Holdings, a regional airline operator, won out in the contest to buy Denver-based Frontier, which was up for auction in bankruptcy court.

All three airlines announced the outcome late Thursday, although Frontier’s unsecured creditors are still voting on a reorganization plan that includes the Republic deal.

Dallas-based Southwest had planned to absorb Frontier over about two years and maintain all of Frontier’s existing markets, which included Atlanta-Denver flights. Frontier has three daily flights on that route.

Southwest, the godfather of low-frills, discount airlines, has never served Atlanta. Even the handful of Frontier flights would have enabled local travelers to get into Southwest’s route system from Hartsfield-Jackson International Airport.

However, its impact in Atlanta would have been muted -- at least initially -- because there is little room for it to expand at Hartsfield-Jackson beyond Frontier’s minimal presence. And the emergence of AirTran Airways in recent years has filled a discounter role in Atlanta.

Republic is buying Frontier for almost $108.8 million, along with other financial terms, according to the announcements. Frontier said Republic submitted the “highest and best bid” and had advised Frontier that it had already received antitrust clearance for the deal.

Southwest said its $170 million bid was deemed unacceptable because the carrier would not back down from a requirement that its pilots and Frontier’s work out their integration before the deal would close. That was a non-issue for Republic, which has said it plans to keep operating Frontier as a stand-alone carrier.

Two of Republic Airways’ other subsidiaries, Chautauqua Airlines and Shuttle America, are regional partners of Delta Air Lines, flying as Delta Connection.

Pilot union negotiators for Southwest and Frontier talked until late Wednesday without reaching a deal. Carl Kuwitzky, president of the Southwest Airlines Pilots’ Association, said the Southwest pilots’ offer was to put Frontier pilots at the bottom of the combined seniority list. For pilots in an airline merger, that’s considered the worst possible outcome.

The Associated Press contributed to this article.

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