Republic Airways
{||}Frontier Airlines is seizing on an opportunity at Cleveland Hopkins International Airport created by United’s decision to downsize its hub in the city. It is not a surprising move given Frontier’s strategy to enter markets that are victims of US major airline consolidation - and there are plenty of them.
In addition, unlike other branded airlines Frontier's network of marketing alliances is limited to a code-sharing agreement with Great Lakes Aviation , constraining its ability to attract passenger traffic. (Code-sharing enables airlines to sell tickets on one another's flights and thus offer passengers service to more destinations.) Frontier's partnership with low-cost carrier AirTran ended in mid-2011. Their arrangement, dating back to late 2006, allowed frequent flyer members of both airlines to earn and use their miles on each other's carriers. The partnership was touted as a first between low-cost airlines. Frontier has since integrated the Midwest Miles program into its own.
In October 2013, Republic Airways Holdings entered into an agreement with private equity firm Indigo Partners to sell Frontier Airlines for approximately $145 million. According to Indigo, the transaction would further Frontier’s evolution into an ultra-low-cost carrier. 11 In December 2013, Indigo Partners LLC, through an affiliate, completed the purchase of the Frontier Airline from Republic Airways Holdings. The airline's headquarters will remain in Denver. 38 Republic Airways Holdings subsidiary Republic Airlines no longer continues to fly Embraer 190 aircraft on behalf of Frontier, as of January 1, 2014. Former Regional Carriers edit Frontier Express edit
As Indigo Partners moves closer to finalising its acquisition of Frontier Airlines and heightens the efforts underway to transition the airline into a true ultra low-cost carrier similar to Spirit Airlines, certain nuances to Frontier’s strategy should prove interesting for Indigo to navigate as it works to place Frontier squarely in the US’s growing ultra low-cost business model. Overall, the ultra low-cost business scheme has so far proven fruitful for Spirit in terms of the carrier’s financial performance; but passengers still bristle about being nickel and dimed even though they are paying base fares lower than most other airlines (even so-called low-fare airlines) by a significant margin.
Frontier Airlines was incorporated on February 8, 1994, by a group that included executives of a previous incarnation of Frontier Airlines in response to the void left by Continental Airlines 1993 shutdown of its Denver (Stapleton) hub. 13 Scheduled flights began five months later in July 1994 utilizing Boeing 737 jetliners. Like the original, Frontier flew out of Denver and for the first 9 years used the slogan "The Spirit of the West" which was displayed above the windows and just behind the cursive letters "Frontier" on the fuselage of their aircraft.
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