Focus: Frontier diversifying for the future.
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Aircraft & Fleet Plans,
Frontier Airlines
Frontier Airlines announcement of plans to launch San Francisco-Los Angeles service could be part of a strategy to diversify away from its increasingly competitive Denver hub, where Southwest Airlines recently launched services.
The point-to-point intra-California route is the second time the carrier has expanded domestic services outside its Denver hub. In 2004, the carrier launched four routes from Los Angeles, but quickly retreated amid rising fuel costs, weak demand and heavy competition.
More recently, Frontier has added nonstop services from other US cities to resort destinations in Mexico and a new Denver-Calgary service operated by its regional partner, Horizon Air, marking the first US-Canada service operated by an American LCC. (Canadian LCC, WestJet operates to a number of US leisure destinations.
Frontier also finalised an aircraft order with Airbus announced in Feb-06 for six A320s. The order marks the first time the carrier will operate the A320 type. As part of the agreement, Frontier is also converting four of its existing 132-seat A319 orders to A320s, and four other previously ordered A319s to four A318s. The carrier will commence taking delivery of the ten A320s from early 2008 through to 2010 and the A318s in 2007.
Frontier President and CEO, Jeff Potter, noted the new A320 aircraft and larger number of A318 aircraft further enhance our ability to meet the various demand levels in the Frontier system.
Frontier will use the larger A320s (two class configuration, although seat numbers not revealed) to increase capacity on denser routes, while the 114-seat A318s will be used for a combination of new smaller markets and on high frequency routes. Frontiers move is similar to JetBlue Airways use of A320s and E190s (JetBlue last week launched twice daily New York JFK-Bermuda service using its new 100-seat E190s).
The aircraft diversification strategy compliments Frontiers launch of new routes as it attempts to reduce the risk of increased competition at its Denver hub.
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Focus: Frontier diversifying for the future. 
