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Monday, September 15, 2008

Market Watch – Horizon, Lynx


Horizon Continues its Capitol Expansion
Horizon Air will link California’s state capitol at Sacramento with Santa Barbara, the American Riviera, starting Nov. 9, 2008, with new jet service, replacing service lost on September 1 with the end of ExpressJet’s branded operation. The two nonstop flights will operate daily Monday through Friday. Horizon will offer one daily flight on Saturday and Sunday with all flights operated with 70-seat Bombardier CRJ-700 regional jets.
"Instead of spending hours on the road or flying to an out-of-the-way airport, business travelers and those traveling on government-related business can fly nonstop between Sacramento and Santa Barbara, put in a day's work, and be home the same day," said Dan Russo, vice president of marketing and communications at Horizon.

Steamboat Service Launched by Lynx
On Dec. 18, 2008, Frontier will begin daily nonstop service between Denver and Steamboat Springs/Hayden, CO. Frontier will serve the Steamboat Springs market with its fleet of 10 Bombardier Q400 aircraft operated by Lynx Aviation, a subsidiary of Frontier Holdings Inc.
"With Frontier's new service, skiers and snowboarders from across the country have convenient travel options to reach Steamboat-Ski Town, U.S.A. and its legendary Champagne Powder snow this winter," said Rob Perlman, vice president of sales & marketing for Steamboat. "With the addition of Frontier, Steamboat further solidifies its position as being the most conveniently accessed resort in the Colorado Rocky Mountains."
"Steamboat Springs is the perfect addition to Frontier's lineup of mountain resort destinations," said Frontier President and CEO Sean Menke. "The Q400 aircraft is really tailored for this kind of market and provides the little extras that will make traveling to and from Steamboat Springs a pleasure for our customers."
As an added convenience, Frontier will remove four of the 74 seats inside the aircraft to make room for skis and other snow equipment on board. This allows Frontier customers to go straight from the plane to the slopes without delay. The seasonal Steamboat Springs service will run from Dec. 18, 2008 to April 22, 2009. In addition to the new Steamboat Springs/Hayden (HDN) service, Lynx also service Colorado Springs, Aspen, Durango and Grand Junction.

Revenue Guarantee Fails
Despite a revenue guarantee, Horizon is cancelling its once daily, Q400 nonstop between Prince George, B.C. and Seattle October 5, citing fuel prices and a slowing economy. The revenue guarantee came from a coalition including Initiatives Prince George, the Prince George Airport Authority, Tourism BC, Mayor Kinsley, the Prince George City Council and the Prince George business community.
Under the terms of the contract, cut before the run up in fuel prices, the guarantee was to be paid to Horizon only if passenger loads didn’t meet an agreed-upon minimum. Fuel costs resulting in an increase in airline fares that dampened demand coupled with the economic slowdown.