AWACO
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- Jan 28, 2006
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Since I have not noticed any chat about this on here yet:
Frontier Airlines Holdings, Inc. Launches Turboprop Service and Seeks to Expand Regional Jet Operation
Wednesday September 6, 9:30 am ET / DENVER / Frontier Airlines Holdings, Inc. (Nasdaq: FRNT - News), referred to below as the Company, today announced it has entered into an agreement with Bombardier, Inc. to purchase ten 74-seat Q400 turboprop aircraft, with an option to purchase an additional ten aircraft. The Company intends to operate the Q400s under a wholly owned subsidiary with its own operating certificate. Leveraging the strength of Frontier Airlines Denver International Airport (DEN) hub, which provides service to a network of 57 North American cities, the subsidiary intends to use its fleet of Q400s to bring low-cost service to under-served markets in Colorado and the Rocky Mountain region. The subsidiary expects to serve as many as 18 destinations using the new aircraft and to create 300-400 new jobs. Cities to be served have not yet been finalized. A summary of the terms of the aircraft purchase agreement can be found in the Form 8-K filed with the Securities and Exchange Commission (SEC).
"This aircraft purchase will enable our service to grow by giving Frontier access to regional leisure and business travel destinations that were previously inaccessible to us but are ideally suited for the economics of the Q400," said Jeff Potter, president and CEO of Frontier Airlines Holdings, Inc. "Our goal is to bring the Frontier experience to under-served markets using a comfortable, state-of-the-art new aircraft, and the Q400 is the perfect aircraft for that mission."
The Company's first Q400 aircraft is scheduled for delivery in May 2007, with subsequent deliveries continuing throughout the balance of the year. The total fleet of 10 aircraft is scheduled to be in service by December 2007. Deliveries of the option aircraft, if exercised, would begin in March 2008. The Frontier brand name will be used for the new service, as it is with the airline's regional service, Frontier JetExpress. The Q400 aircraft will be painted in the Frontier livery with the familiar animals on the tail of every aircraft.
The Q400's sophisticated interior is bright and spacious, featuring wide two-by-two seating with stand-up headroom and easy access to the ample overhead bins on both sides of the center aisle. The aircraft also contains state-of-the-art cabin vibration dampening and noise suppression systems. Despite its jet-like speed, the Q400 is one of the most environmentally-friendly aircraft on the market, offering reduced engine emissions and community noise levels well below industry requirements. Its fuel efficiency will help reduce costs of operation, increasing profit-generating opportunities. The aircraft will be configured with 74 seats with legroom ranging from 31 to 34 inches.
"We welcome Frontier Airlines Holdings, Inc. to the growing list of Bombardier Q400 operators," said Steven Ridolfi, president, Bombardier Regional Aircraft. "This extraordinary regional aircraft has led a resurgence in turboprop travel due to its jet-like speed, quiet comfort, environmental friendliness, low fuel burn, and the lowest operating costs of any regional aircraft."
"While we did approach our partners at Horizon about the Q400 operation because they also operate Q400s, we concluded that we could drive this growth strategy more cost-effectively by purchasing and operating the aircraft under the Frontier Airlines Holdings, Inc. umbrella," added Potter. "I am proud to say that Tom Nunn, Frontier's current Vice President of Safety and Security, will be leading this exciting new opportunity for us as President of the new subsidiary. In my opinion, with Tom's tremendous integrity and extensive experience, there is no better person for the job."
In conjunction with Frontier's Q400 growth strategy, the airline is also seeking a partner(s) to operate up to 20 regional jet (RJ) aircraft, to either augment or replace its existing fleet of nine CRJ-700 aircraft, currently operated by Horizon Air as Frontier JetExpress. The expanded RJ fleet will be used to seed mainline service by developing new and smaller markets into mature mainline markets for Frontier and to supplement Frontier's mainline service.
"Our 12-year contract with Horizon Air allows for either party to initiate a review of the terms for changes to be agreed to after three years, and we are currently in discussions with Horizon in this regard," said Paul Tate, senior vice president and CFO of Frontier. "We intend to distribute a request for proposal (RFP) to Horizon Air and other RJ operators within the next 30 days that will enable us to execute our growth strategy." Senior leadership will host a conference call to discuss the purchase of the Q400s on September 8, 2006, at 9:00 a.m. Mountain Standard Time. The call is available via the World Wide Web on the airline's Web site at www.frontierairlines.com.
Same subject…different perspective:
Frontier to Use Smaller Planes to Expand Reach
Perhaps with an eye at reaching markets that rivals such as Southwest can’t serve, Frontier Airlines plans to launch a wholly owned subsidiary that will fly 74-seat turbo-prop planes, according to Air Transport World. The Rocky Mountain News writes that the subsidiary “will begin flying next summer to as many as 18 cities in Colorado and the Rocky Mountain region, a move that could give it a leg up in its bid to compete with discounter Southwest.” The unit will be called Lynx Aviation, though its aircraft will fly under the Frontier Express banner with paint schemes that match Frontier’s current fleet. Though Frontier hasn't yet unveiled routes for the subsidiary, cities like Aspen and Vail, CO; and Jackson Hole, WY, will be among the types of destinations that Lynx’s 74-seat Bombardier Q400 turboprop planes would make possible.
"When you draw a 650–700-mile circle around Denver, what we see is a lot of opportunity, but we didn't necessarily have the right aircraft," Frontier CEO Jeff Potter tells The Denver Post. "It gives us the flexibility to serve some of the Colorado mountain destinations that we couldn't otherwise do." It also gives Frontier the ability to serve markets that some rivals –- notably Southwest –- aren’t likely to fly to because the size of their aircraft are not a good fit for such small markets.
[FONT="]"These airplanes will give Frontier revenue that Southwest could never dream of getting," says industry consultant Mike Boyd. The new routes to small-but-popular Rocky Mountain destinations also could help Frontier draw more high-fare connecting passengers through its Denver hub. As for the turbo-prop service, Potter tells the Rocky Mountain News that the new Q400s will give fliers a "much different experience" than the noisy, older turboprops most people are used to. For example, the 6-foot-2 Potter tells the paper that the planes are tall enough for him to stand up in, and he says they have technology that can curb vibrations found with older turbo-props. [/FONT]
Frontier Airlines Holdings, Inc. Launches Turboprop Service and Seeks to Expand Regional Jet Operation
Wednesday September 6, 9:30 am ET / DENVER / Frontier Airlines Holdings, Inc. (Nasdaq: FRNT - News), referred to below as the Company, today announced it has entered into an agreement with Bombardier, Inc. to purchase ten 74-seat Q400 turboprop aircraft, with an option to purchase an additional ten aircraft. The Company intends to operate the Q400s under a wholly owned subsidiary with its own operating certificate. Leveraging the strength of Frontier Airlines Denver International Airport (DEN) hub, which provides service to a network of 57 North American cities, the subsidiary intends to use its fleet of Q400s to bring low-cost service to under-served markets in Colorado and the Rocky Mountain region. The subsidiary expects to serve as many as 18 destinations using the new aircraft and to create 300-400 new jobs. Cities to be served have not yet been finalized. A summary of the terms of the aircraft purchase agreement can be found in the Form 8-K filed with the Securities and Exchange Commission (SEC).
"This aircraft purchase will enable our service to grow by giving Frontier access to regional leisure and business travel destinations that were previously inaccessible to us but are ideally suited for the economics of the Q400," said Jeff Potter, president and CEO of Frontier Airlines Holdings, Inc. "Our goal is to bring the Frontier experience to under-served markets using a comfortable, state-of-the-art new aircraft, and the Q400 is the perfect aircraft for that mission."
The Company's first Q400 aircraft is scheduled for delivery in May 2007, with subsequent deliveries continuing throughout the balance of the year. The total fleet of 10 aircraft is scheduled to be in service by December 2007. Deliveries of the option aircraft, if exercised, would begin in March 2008. The Frontier brand name will be used for the new service, as it is with the airline's regional service, Frontier JetExpress. The Q400 aircraft will be painted in the Frontier livery with the familiar animals on the tail of every aircraft.
The Q400's sophisticated interior is bright and spacious, featuring wide two-by-two seating with stand-up headroom and easy access to the ample overhead bins on both sides of the center aisle. The aircraft also contains state-of-the-art cabin vibration dampening and noise suppression systems. Despite its jet-like speed, the Q400 is one of the most environmentally-friendly aircraft on the market, offering reduced engine emissions and community noise levels well below industry requirements. Its fuel efficiency will help reduce costs of operation, increasing profit-generating opportunities. The aircraft will be configured with 74 seats with legroom ranging from 31 to 34 inches.
"We welcome Frontier Airlines Holdings, Inc. to the growing list of Bombardier Q400 operators," said Steven Ridolfi, president, Bombardier Regional Aircraft. "This extraordinary regional aircraft has led a resurgence in turboprop travel due to its jet-like speed, quiet comfort, environmental friendliness, low fuel burn, and the lowest operating costs of any regional aircraft."
"While we did approach our partners at Horizon about the Q400 operation because they also operate Q400s, we concluded that we could drive this growth strategy more cost-effectively by purchasing and operating the aircraft under the Frontier Airlines Holdings, Inc. umbrella," added Potter. "I am proud to say that Tom Nunn, Frontier's current Vice President of Safety and Security, will be leading this exciting new opportunity for us as President of the new subsidiary. In my opinion, with Tom's tremendous integrity and extensive experience, there is no better person for the job."
In conjunction with Frontier's Q400 growth strategy, the airline is also seeking a partner(s) to operate up to 20 regional jet (RJ) aircraft, to either augment or replace its existing fleet of nine CRJ-700 aircraft, currently operated by Horizon Air as Frontier JetExpress. The expanded RJ fleet will be used to seed mainline service by developing new and smaller markets into mature mainline markets for Frontier and to supplement Frontier's mainline service.
"Our 12-year contract with Horizon Air allows for either party to initiate a review of the terms for changes to be agreed to after three years, and we are currently in discussions with Horizon in this regard," said Paul Tate, senior vice president and CFO of Frontier. "We intend to distribute a request for proposal (RFP) to Horizon Air and other RJ operators within the next 30 days that will enable us to execute our growth strategy." Senior leadership will host a conference call to discuss the purchase of the Q400s on September 8, 2006, at 9:00 a.m. Mountain Standard Time. The call is available via the World Wide Web on the airline's Web site at www.frontierairlines.com.
Same subject…different perspective:
Frontier to Use Smaller Planes to Expand Reach
Perhaps with an eye at reaching markets that rivals such as Southwest can’t serve, Frontier Airlines plans to launch a wholly owned subsidiary that will fly 74-seat turbo-prop planes, according to Air Transport World. The Rocky Mountain News writes that the subsidiary “will begin flying next summer to as many as 18 cities in Colorado and the Rocky Mountain region, a move that could give it a leg up in its bid to compete with discounter Southwest.” The unit will be called Lynx Aviation, though its aircraft will fly under the Frontier Express banner with paint schemes that match Frontier’s current fleet. Though Frontier hasn't yet unveiled routes for the subsidiary, cities like Aspen and Vail, CO; and Jackson Hole, WY, will be among the types of destinations that Lynx’s 74-seat Bombardier Q400 turboprop planes would make possible.
"When you draw a 650–700-mile circle around Denver, what we see is a lot of opportunity, but we didn't necessarily have the right aircraft," Frontier CEO Jeff Potter tells The Denver Post. "It gives us the flexibility to serve some of the Colorado mountain destinations that we couldn't otherwise do." It also gives Frontier the ability to serve markets that some rivals –- notably Southwest –- aren’t likely to fly to because the size of their aircraft are not a good fit for such small markets.
[FONT="]"These airplanes will give Frontier revenue that Southwest could never dream of getting," says industry consultant Mike Boyd. The new routes to small-but-popular Rocky Mountain destinations also could help Frontier draw more high-fare connecting passengers through its Denver hub. As for the turbo-prop service, Potter tells the Rocky Mountain News that the new Q400s will give fliers a "much different experience" than the noisy, older turboprops most people are used to. For example, the 6-foot-2 Potter tells the paper that the planes are tall enough for him to stand up in, and he says they have technology that can curb vibrations found with older turbo-props. [/FONT]
