For Frontier Airlines parent company, Frontier Airlines Holdings Inc., (FRNT) their services have shifted more focus towards holiday and Mexican destinations rather than expanding to the big cities to the east.
Jeff Potter, president and chief executive of Denver-based Frontier Airlines, said about 10 percent of Frontier's business now is service to Mexico, four years after the low-cost carrier began flying there. The airline now flies to eight popular Mexican destinations from Denver, Kansas City, St. Louis, Los Angeles, Nashville, Indianapolis, and Salt Lake City. And new cities are being added constantly. The carrier has seen amazing growth in their demand for destinations to the south. But with that comes more competition. Although Southwest Airlines does not fly to Mexico, Frontier has faced competition from the LCC in many other markets.
"Southwest certainly has changed the marketplace, but we've been preparing this company for 12 or 13 years to compete against anybody," Potter said. "Kansas City is a good example. You have a big Southwest presence here, but you also have Midwest Airlines competing very well against them. Denver is no different."
The key for the company is to expand into market places where the competition will be limited but will also increase their transfer through their hub in Denver. Recently the company has started to focus on smaller destinations for travelers where SWA would not be able to travel into with their larger aircraft. Frontier hopes that by offering holiday ski or summer destinations into those cities that people will start to use Frontier more often.
Airport Business
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