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Who's Who in Low Cost Aviation

Carrier: Frontier Airlines
Headquarters: USA
Founded: 1994
Destinations: 46
Bases: Denver, Cancun
Owners: Public
Listed: Yes
Online Booking: Yes
Website: http://www.flyfrontier.com
Fleet A319 46 +6 on order
A318 7 +4 on order
A320 on order 10

Overview - Frontier Airlines

Frontier – David defends his hub against Goliaths

Frontier Airlines began life as an LCC in 1994 when it started operations at Denver International Airport (DIA). From a smaller carrier, Frontier has become a major LCC, flying to 46 destinations from its DIA hub.

The carrier, which since 2005 has operated an all-Airbus fleet, replacing what had been an all-B737 operation, has in recent years suffered under unusually high competition at Denver hub and the high fuel prices that have hurt the whole industry.

The competition woes have been especially acute in recent years, as fellow Denver hub tenant United Airlines slashed its costs under bankruptcy protection and launched low cost affiliate Ted at the airport. Most signally, in Jan-06, Southwest initiated operations at the airport; it has since added new routes and frequencies.

Frontier has responded by diligently working to lower its own non-fuel costs and by trying to grow its non-hub operations. Cost efforts have been successful – its ex-fuel unit costs are now lower than industry benchmark Southwest's. Non-hub growth has been mixed – its 2004 attempts at creating a focus city in Los Angeles ran into an unexpectedly harsh competitive response that forced abandonment after heavy losses.

Better has been the build-up of service to Mexico, which was not served by LCCs until Frontier launched Denver-Cancun operations in 2002. Now it operates successful services to seven Mexican airports from Denver and five other US cities.

Outlook bright for opportunistic LCC

Frontier has had spotty results in recent years, posting losses in recent periods. But its cost-cutting and its excellent product, as well as its sage non-hub planning, position it well for future profits.


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Other Frontier Airlines News

Frontier Airlines signs 3-year pact for cargo data management’s web-based cargo system

Frontier Airlines kicks off Austin-Kansas City service

Frontier launches nonstop service between Milwaukee and St. Petersburg/Clearwater

Frontier Airlines partners with Canopy Airport Parking

Frontier Airlines announces major integration milestone

Frontier Airlines connects Hartford and Milwaukee

Frontier Airlines announces Omaha expansion

Frontier adds new nonstop service from Des Moines

Frontier announces move to Houston’s Hobby Airport

Frontier Airlines to add seasonal weekly service to Milwaukee in January

 

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