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taloft said:I took a few minutes to review Frontier's 10-K filing from last year and came up with some observations. Note that I'm not really trained in business, reading 10-K's or much else really, but all that asideI found
1) Competition in Denver from primarily United (bankruptcy protection as mentioned), but also other carriers. Declining prices of ticket fares due to competition. It said their average ticket price went from something like $132 to $109 in one year 2002-2003.
2) Significant debt load and growing. Looks like it's due mainly to aircraft acquisitions, so this may not necessarily be a bad thing.
3) Higher cost of Denver as main hub. Not sure how much truth there is in this, but it looked like a factor.
4) Costs associated with transition to Airbus fleet.
Overall, it seems the whole thing boiled down to supply-and-demand, de-regulation and increased competition. Guess that's true for everyone these days.