Is Frontier Airlines (FRNT) ripe for acquisition? Rumors have been circulating after the CEO, Jeff Potter, said he would leave the company in September. Just days ago, Frontier Chairman and co-founder Sam Addoms announced he will retire.
Potter was instrumental in navigating the airline through sky rocketing fuel prices, the arrival of Southwest Airlines into Denver and the beginning of their regional service, Lynx.
Recently Frontier Airlines has faced difficulties in turning a profit and their stock has sunk to 2003 levels. All of those reasons combined with the departure of two top level executives might lead many to believe that the airline is a possible acquisition or merger target.
George Hamlin, a managing director at aviation consulting firm Airline Capital Associates said, "I wonder if some entity has arranged to acquire Frontier. It strikes me as rather logical when the founder and CEO are going off and doing other things. Certainly it's cause for speculation."
Frontier’s spokesperson said that the departures are coincidental. Potter says that it was his decision to leave and that the airline is posed to grow on its own.
Rocky Mountain News
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