Potential bumpy ride for Southwest's Frontier bid

Today's supposed to be the day when an auction for Frontier Airlines gets underway, with most observers expecting that Southwest Airlines would walk away with the Denver-based carrier. Moments ago, however, Reuters reported that negotiations between Southwest and Frontier pilots, which were supposed to be completed by last night, apparently remain unresolved.

What are the potential repercussions? Here are the key lines from the Reuters piece:

Southwest had told pilots it would withdraw its bid for Frontier if both unions could not reach an agreement by midnight on August 12, according to an e-mail sent to Southwest pilots last night.

Southwest will petition the bankruptcy court for an extension Thursday on its final bid for Frontier, according to the e-mail.

So... will the auction be grounded? Stand by.

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