State of the Airlines

Thursday, September 07, 2006

NEWS: Seeking a New Frontier

Frontier announced, ala JetBlue, that they too plan to purchase regional jets. I've got mixed feelings on the strategy. The low cost airline template usually means picking a (as in one) fleet type and sticking with it. Different inventories, manuals, training needs can all drive greater costs. But Frontier's approach is different than JetBlue's. Frontier is saying that they intend to create a subsidiary to operate the RJs. That could be an important difference. The thing I like about this idea is that Frontiers headquarters, Denver, is surrounded by on all sides by what are normally under-serviced smaller airports. There should be a good opportunity for them.

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