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| Frontier Airlines: A New Direction for 2012 |
Frontier Airlines, founded in 1994, is currently being offered for sale by its
parent company, Republic Airways Holdings. After only two years of
mainline flying, Republic plans to return to its roots as a contracted regional
carrier. Republic purchased both Midwest Airlines and Frontier in 2009,
and after much consideration, it dissolved the Midwest brand and moved
forward as Frontier Airlines.
Prior to its acquisition by Republic, Frontier offered a consistent product
and a growing customer base. Today, confusion seems to reign. The fleet
primarily consists of Airbus and Embraer aircraft types, each offering a
different experience for the customer. You will get DirecTV on one, but not
the other. One is Frontier, the other is "operated by Republic Airlines."
Though everything appears uniformly branded, the product is not.
parent company, Republic Airways Holdings. After only two years of
mainline flying, Republic plans to return to its roots as a contracted regional
carrier. Republic purchased both Midwest Airlines and Frontier in 2009,
and after much consideration, it dissolved the Midwest brand and moved
forward as Frontier Airlines.
Prior to its acquisition by Republic, Frontier offered a consistent product
and a growing customer base. Today, confusion seems to reign. The fleet
primarily consists of Airbus and Embraer aircraft types, each offering a
different experience for the customer. You will get DirecTV on one, but not
the other. One is Frontier, the other is "operated by Republic Airlines."
Though everything appears uniformly branded, the product is not.
Frontier's claim as the low fare leader
has been validated, but it comes at a
price. These low fares have resulted
in substantial revenue losses and
ultimately market share. Frontier's
stronghold on Denver is slipping
away as Southwest Airlines is now
the second largest carrier at Denver
International (DEN).
Not only do Frontier and Southwest
battle at DEN, they both have smaller
hubs in Milwaukee and Kansas City.
Route overlap for the two carriers is
high.
Frontier flies some suspect routes,
but without access to their books,
you have to assume they are
profitable. To list a few:
Denver - Provo
Denver - Green Bay
Denver - Newport News
Denver - Rockford
Denver - Knoxville
Grand Rapids - Washington DC
has been validated, but it comes at a
price. These low fares have resulted
in substantial revenue losses and
ultimately market share. Frontier's
stronghold on Denver is slipping
away as Southwest Airlines is now
the second largest carrier at Denver
International (DEN).
Not only do Frontier and Southwest
battle at DEN, they both have smaller
hubs in Milwaukee and Kansas City.
Route overlap for the two carriers is
high.
Frontier flies some suspect routes,
but without access to their books,
you have to assume they are
profitable. To list a few:
Denver - Provo
Denver - Green Bay
Denver - Newport News
Denver - Rockford
Denver - Knoxville
Grand Rapids - Washington DC
Returning the airline to profitability and consistency is no small task,
however, there are significant growth opportunities in Denver versus large
legacy carriers.
As for Milwaukee (MKE), it is neither a destination nor a wise choice for a
hub. With a steady population decline over the past 20 years and poor
winter weather, this is a real head scratcher. The bulk of MKE operations
should have been discontinued, or moved, following the elimination of the
Midwest brand. Republic is headquartered in Indianapolis, which is a
logical choice for increased flights, but is left almost untouched.
To be continued...
however, there are significant growth opportunities in Denver versus large
legacy carriers.
As for Milwaukee (MKE), it is neither a destination nor a wise choice for a
hub. With a steady population decline over the past 20 years and poor
winter weather, this is a real head scratcher. The bulk of MKE operations
should have been discontinued, or moved, following the elimination of the
Midwest brand. Republic is headquartered in Indianapolis, which is a
logical choice for increased flights, but is left almost untouched.
To be continued...