Monday, December 18, 2006
Frontier Aims At Smaller Markets
Within 45 days, Frontier (FRNT), expects to announce who will handle its regional flying after Horizon announced it will no longer partner with Frontier. In the meantime, Frontier is trying to avoid the increasing competition from United (UAUA) and Southwest (LUV) at its Denver hub by expanding to Mexico and Canada and smaller markets such as the traditionally regional routes of Vail and Aspen. The move is an attempt to take full advantage of these markets as it diversifies away from its heavy reliance on its Denver hub. (RAN, September 11, p.1)
The plans are a glimpse into how it plans to use the 10 Bombardier (BBD) Q400 turboprops it has ordered that will serve a radius of 650 miles around Denver. Frontier is planning to launch Lynx, dba Frontier Express, in July/August 2007 and expects to invest between $25 million and $28 million in start-up costs. (RAN, September 18, p.1)
In addition, it issued a request for proposal to communities within a radius of 1,200 miles from its Denver hub seeking regional jet and/or turboprop service. (RAN, October 23, p.1) The proposal was sent to over 50 communities to "provide all potentially viable communities with an opportunity to outline their need for and plans to support the introduction" of Frontier service. "This will help us determine the level of interest and commitment from these as well as other communities," said Vice President of Marketing John Happ.
It has also joined with AirTran Airways to offer flights on each other's networks and the ability to earn frequent flier miles on either carrier. (RAN, November 20, p.1) The move is expected to drive incremental revenues and new customers to both.

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