Citing pressing needs in its home market and the fact it did not want to take on the investment needed to grow the Frontier Airlines (FRNT) partnership, Horizon is pulling the nine Bombardier (BBD) CRJ700s from its Frontier JetExpress operation, assigning the 70 seaters to current and new routes throughout its West Coast network. (RAN, September 5 & 18, p.1) Horizon was in the second year of a 12-year JetExpress contract which began in January 2004.

The move comes on the heels of Frontier (FRNT) issuing a request for proposal for up to 20 RJs and purchasing Q400s turboprops for its planned regional subsidiary scheduled for start up next July. Horizon concluded, after reviewing the RFP, that such an investment would compete for capital that could be better used in the growing Horizon Air/Alaska Airlines Network.

"We've enjoyed a tremendous working relationship with Frontier," said Horizon President and CEO Jeff Pinneo. "Through this program we've demonstrated our ability to provide high-quality contract flying services for other airline partners. We regret the pressing needs for aircraft and capital on the home front prevent us from participating in their expansion plans, but we look forward to all that this move will allow us to do to improve service levels and reinforce our commitment to our traditional routes."

The two airlines will work together over the next year on a smooth transition.