AirTran, Frontier form alliancePosted 11/14/2006 12:01 AM
http://www.usatoday.com/money/biztravel/2006-11-14-air-deal-usat_x.htm
By Dan Reed, USA TODAY
Two low-cost carriers — AirTran (AAI) and Frontier (FRNT)— will announce on Tuesday a marketing alliance that nearly doubles the destinations each can offer and that will enhance the value of each carrier's frequent-flier program.
The Frontier-AirTran partnership is the first commercial link-up of its kind between next-generation, low-cost carriers; it's an effort to offset the advantage that big, traditional U.S. carriers have in the breadth of domestic service offerings.
AirTran, based in Atlanta, focuses primarily on markets east of the Mississippi River, while Denver-based Frontier concentrates on western markets. By linking, in effect, their route systems, both hope to tap into and grow each other's group of loyal travelers.
Executives at both carriers also hope to woo fliers who have remained loyal to the larger airlines. Many such travelers would like to fly on a low-cost carrier, AirTran CEO Bob Fornaro says. But until now, they have remained loyal to a major carrier because neither Frontier nor AirTran individually served enough destinations for those travelers to concentrate all their frequent-flier activity into a single carrier's program.
Now, members of Frontier's EarlyReturns program will be able to earn mileage points even when flying on AirTran. And members of AirTran's A+Rewards program — based on the number of flights taken, not miles flown — can chose to earn A+Rewards credits when flying on Frontier. They also can cash in their miles or credits for free trips on either carrier.
John Happ, Frontier's senior vice president of marketing and planning, said that while travelers who live in the Denver and Atlanta areas obviously will benefit from an expanded list of cities served by their locally based low-cost carrier, residents of the central USA might be the greatest beneficiaries.
The Frontier-AirTran partnership will not include a so-called code-sharing deal, allowing one airline to sell seats on a partner airline's flights as if they were its own.
Code sharing began in the 1980s as a way for major airlines to market seats on regional carriers' flights to small and midsize markets. The big carriers could not profitably serve those routes themselves because their costs were too high and their planes too large. In the 1990s, code sharing in the international travel arena became commonplace. And more recently, several major carriers — most notably Delta, Northwest and Continental — have engaged in limited domestic code sharing.
AirTran and Frontier will refer business to one another seamlessly via their websites and telephone call centers. For example, a visitor to Frontier's website asking about a flight to Boston will be electronically referred to AirTran's site, where the transaction can be completed.
"I think both sides will get the same (revenue) benefit without doing a full-blown code share" said Jeff Potter, Frontier's CEO.
Sounds like a great route mix. I wonder if further "Code-sharing" is in the future. Too bad there is such an airplane fleet difference, would have made an interesting alliance. Maybe there is also some gate sharing planned in the future. Look forward to a possible future with the Frontier Pilot Group. Let's hope this means strength in numbers.
Lifter
http://www.usatoday.com/money/biztravel/2006-11-14-air-deal-usat_x.htm
By Dan Reed, USA TODAY
Two low-cost carriers — AirTran (AAI) and Frontier (FRNT)— will announce on Tuesday a marketing alliance that nearly doubles the destinations each can offer and that will enhance the value of each carrier's frequent-flier program.
The Frontier-AirTran partnership is the first commercial link-up of its kind between next-generation, low-cost carriers; it's an effort to offset the advantage that big, traditional U.S. carriers have in the breadth of domestic service offerings.
AirTran, based in Atlanta, focuses primarily on markets east of the Mississippi River, while Denver-based Frontier concentrates on western markets. By linking, in effect, their route systems, both hope to tap into and grow each other's group of loyal travelers.
Executives at both carriers also hope to woo fliers who have remained loyal to the larger airlines. Many such travelers would like to fly on a low-cost carrier, AirTran CEO Bob Fornaro says. But until now, they have remained loyal to a major carrier because neither Frontier nor AirTran individually served enough destinations for those travelers to concentrate all their frequent-flier activity into a single carrier's program.
Now, members of Frontier's EarlyReturns program will be able to earn mileage points even when flying on AirTran. And members of AirTran's A+Rewards program — based on the number of flights taken, not miles flown — can chose to earn A+Rewards credits when flying on Frontier. They also can cash in their miles or credits for free trips on either carrier.
John Happ, Frontier's senior vice president of marketing and planning, said that while travelers who live in the Denver and Atlanta areas obviously will benefit from an expanded list of cities served by their locally based low-cost carrier, residents of the central USA might be the greatest beneficiaries.
The Frontier-AirTran partnership will not include a so-called code-sharing deal, allowing one airline to sell seats on a partner airline's flights as if they were its own.
Code sharing began in the 1980s as a way for major airlines to market seats on regional carriers' flights to small and midsize markets. The big carriers could not profitably serve those routes themselves because their costs were too high and their planes too large. In the 1990s, code sharing in the international travel arena became commonplace. And more recently, several major carriers — most notably Delta, Northwest and Continental — have engaged in limited domestic code sharing.
AirTran and Frontier will refer business to one another seamlessly via their websites and telephone call centers. For example, a visitor to Frontier's website asking about a flight to Boston will be electronically referred to AirTran's site, where the transaction can be completed.
"I think both sides will get the same (revenue) benefit without doing a full-blown code share" said Jeff Potter, Frontier's CEO.
Sounds like a great route mix. I wonder if further "Code-sharing" is in the future. Too bad there is such an airplane fleet difference, would have made an interesting alliance. Maybe there is also some gate sharing planned in the future. Look forward to a possible future with the Frontier Pilot Group. Let's hope this means strength in numbers.
Lifter
