Frontier Expansion - Will Add 29 A319s!

[Heavy Set]

Wow! Nice to hear someone else is expanding in this market... Looks like Frontier is trying to take advantage of UAL's crap situation. Flying A319s would be great - I like the side-stick... No wonder Frontier has been stepping-up interviews recently....

I bet a lot of ACA guys will be throwing in their applications....


Great news! Read below....



Reuters
UPDATE - Frontier to add 29 owned, leased Airbus jets
Friday August 1, 1:18 pm ET


(Recasts first sentence, adds details and background, changes dateline from NEW YORK)
CHICAGO, Aug 1 (Reuters) - U.S. low-fare air carrier Frontier Airlines Inc. (NasdaqNM:FRNT - News) on Friday said it plans to buy 15 Airbus A319 airliners and lease 14 more, bucking the industry trend by expanding rapidly amid an enduring travel slump.


Denver-based Frontier, which three years ago began replacing its fleet of aging Boeing Co. (NYSE:BA - News) 737s with new jets from European planemaker Airbus (XETRA:EAD.DE - News; Paris:EAD.PA - News), now aims to grow to 62 narrow-body aircraft by 2008 from the present 37.

The latest deal, which has yet to be finalized, would give Frontier purchase rights for up to 23 additional A319s, the airline said, without disclosing financial terms.

The purchases and purchase rights will come via amendments to the existing agreement with Airbus while the leased jets will come under separate transactions, Frontier said, without identifying the lessors.

"There is plenty of opportunity out of Denver for Frontier," industry consultant Michael Boyd said. "This is measured growth, rational planning."

Frontier currently operates 19 A319s and one smaller A318. It also operates 17 Boeing 737s, which will be retired by the end of 2005.

Under the terms announced on Friday, Frontier plans to take one A319 in 2004, and seven more each year from 2005 through 2008. It will take a total of 35 owned or leased jets on the original agreement and return two jets when their leases terminate.

With the new aircraft, Frontier now plans to boost capacity by 27 percent in 2005, up from planned growth of 17.5 percent in 2004. Newer airplanes require less maintenance, which means they can be in the air more, which also adds to capacity.

Late Thursday, Frontier reported a fiscal first-quarter profit, reversing a year-ago loss, in part because its newer A319s have reduced maintenance and fuel costs.

Shares of Frontier were up 10 cents at $13.00 on the Nasdaq on Friday afternoon, off an earlier high at $14.02, which was also a 12-month high

 

[dashtrasher]

Why would the ACA guys be throwing in their applications?

From most of what I've read on this board, I would believe that most of the ACA guys are going to be staying put for the time being.

 

[Heavy Set]

It looks like Frontier might also be attempting to block any ACA attempt to grab available A319s on the market - at least that is a possible theory... Sure, Frontier will absolutely take advantage of UAL's problems in Denver and expand - but it also reduces the availability of other aircraft on the market. Of course ACA could look for Boeings, but Frontier likely did not want anyone else constricting their ability to grow by taking loose Airbuses...

Dashtrasher,

I have spoken with a few of my ACA pals who fly CRJs and Dorkjets and they are not very confident at the moment - as you suggest. Most are very concerned about the situation and actively searching for alternatives - AirTran, Jetblue, SW and now Frontier... Sure, I'd love to see ACA succeed and grow a new LCC, but as one highly reputable airline analyst said recently, "ACA's situation could be an unmitigated disaster." I know that if I were an ACA pilot with some good jet PIC time, I'd be looking elsewhere FAST.... Just my $.02.


Regardless, the Frontier order is fantastic and good news for all of the furloughees out there.... Great airline with great airplanes.