Frontier Airlines Case Study Essay

780 Words4 Pages

Frontier Airlines will continue to remain in Denver, CO for the foreseeable future. And as William Franke, co-founder and managing partner of Indigo states, “The airline’s headquarters will remain in Denver and continue as the primary focus of operations.” (Painter, 2013) Deserting what appears to be an extremely unwavering client base in Denver would not be helpful. Truth be told, Frontier is the main carrier that calls Denver home. The economic impact Frontier has each year in the metro area is estimated to be about $470 million every year. A total of 4,000 people all across the nation are employed by frontier, and 3,000 are located in Denver. While Denver International Airport is the main hub used, Frontier is only the third-largest carrier operating there. Southwest Airlines and United Airlines fill the first two slots.
Back in 2009, a publicly traded carrier named Republic purchased Frontier Airlines out of bankruptcy. The acquisition of Frontier was for $109 million, plus the assumption of $1 billion in debt and aircraft lease obligations, and was its foray into rubbing a brand-name carrier. After some restructuring and cost-saving measures, Frontier saw improved …show more content…

For the month, the company's revenue passenger miles were 814,359,000 compared with 950,467,000 a year ago. Available seat miles were 885,700,000 compared with 1,062,170,000 a year ago. The company served 933,754 passengers compared with 1,077,124 passengers a year ago. Load factor was 92% compared with 89% a year ago. For the year to date, the company's revenue passenger miles was 8,514,833,000 compared with 10,262,547,000 a year ago. Available seat miles were 9,418,975,000 compared with 11,669,504,000 a year ago. The company served 9,332,871 passengers compared with 11,211,568 passengers a year ago. Load factor was 90% compared with 88% a year ago. (Bloomberg business Week,